Accounting links decision makers with economic activities and with the results of their decisions. The more impor-tant the decision is the greater the need for accurate information. Accounting information is simply the means of measuring and communicating economic events to decision makers. Organizations are expected to have certain systems, policies and procedures in place for managing and controlling business operations to reduce exposures and any negative occurrence of potential financial effect. Exposures are inherent in the operation of any organi-zation and may result from a variety of causes such as excessive costs, deficient revenues, and loss of assets, inaccurate accounting, business interruption, statutory sanctions, competitive disadvantage, fraud and embez-zlement. Internal controls are methods and procedures used to authorize transactions and safeguard assets, encourage adherence to company policies, promote operational efficiency and ensure accurate and reliable accounting record. At a minimum, certain financial controls should be in place as part of the financial management system.
Although a large body of empirical research has been undertaken during the last five decades in the area of existing accounting policies and procedures practices of the internal control accounting system, more efforts are
needed to uncover the economic, organizational and political aspects of these policies and procedures practices of the internal control. In particular, more research is needed in developing countries as the bulk of research existed to date relate to the practices in developed economies.