Faculty of business department of accounting an assessment of fixed asset managementin the

2.2 Objective of Internal Control System
The system of internal controls is intended not only to maintain an adequate method of 
processing accounting data but also to safeguard the company against possible financial loss due 
to fraud or error. The controls which are established should be designed to ensure that:
The company receives and process in its accounting records, all the income or revenue to which 
it is entitled.
- All expenditure is properly authorized and payments are only made for goods or service 
which have or will be received
- All assets are properly recorded and safeguarded
- All liabilities are properly recorded and provision is made for known or expected losses.
- Errors and irregularities in processing accounting information will be disclosed.
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2.3 Types of Internal control
Internal control can be classified in to two categories accounting and administrative controls.
Duttachowdhury (1998) states that, accounting control comprise all methods, procedure, and 
records that are concerned directly to safe guarding of assets and reliability of the financial 
records whereas, administrative controls include all the methods and procedures that are 
concerned with operational efficiency and adherence to managerial policies.
2.4 Functions of Internal Control
Internal controls are designed to perform different functions. Some of them are preventive, 
detective and corrective controls (Sawyer and Diffenhofer, 1996; 134)
2.4.1 Preventive Controls
Are installed to prevent undesirable results before they happen. Thus, they can avoid errors and 
greatly reduce cost of corrections. Preventive controls include hiring of trust worthy and 
competent people, segregation of duties to prevent international wrong doing, proper 
authorization to prevent improper use of organization resources proper record keeping and 
physical control over assets to prevent their improper use.