12/11/21, 7:43 PM Accounting control definition — AccountingTools

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June 20, 2021

College Textbooks
What is Accounting Control?
Accounting Books
Accounting control is the manner in which processes are configured to
manage risk within an organization. The targets of accounting control are as Finance Books
follows:
Operations Books
• To guard against the loss of assets
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• To ensure that financial statements represent fairly the financial
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results, position, and cash flows of a business discounts
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• To ensure that objectives are met in an effective and efficient manner

• To ensure that laws and regulations are followed

The system of accounting control may contain dozens or hundreds of SUBMIT

separate control activities that are intended to work within the specific
characteristics of a business. Thus, the accounting controls for a
manufacturer are different from those of a distributor or retailer, even
though all three firms may operate within the same industry.

Management may elect to reduce accounting controls somewhat in order to

increase the efficiency of a process. This may call for the creation of new

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12/11/21, 7:43 PM Accounting control definition — AccountingTools

controls elsewhere in order to offset the negative effects of the eliminated

control.

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Accounting Controls Guidebook 

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