The term “accounting controls” is often used interchangeably with the term “internal controls.”
In the auditing standards, internal controls are subdivided into two types: accounting and administrative controls.
Accounting controls are the methods or procedures implemented by an entity to help ensure the validity and accuracy of its financial statements.
Accounting controls also safeguard assets, authorize transactions, and monitor disbursements designed to assure that transactions are recorded according to management authorization and as a reliable basis for the resulting financial statements. Accounting controls include accountability for assets.
