Name:

Fatima Shakeel

Roll#:

L1F18MCOM7017

CLASS:

MCOM (A)

SUBJECT:

ADVANCED AUDIT

ASSIGNMENT# 3

SUBMITTED TO:

PROF: IMRAN SHEHZAD

Question:

Difference Between internal control system and accounting system?

ACCOUNTING SYSTEM:
An accounting system is first protection of financial statement when the internal control system
verifies the information the accounting system process, journalize, posting, prepare the trial
balance and prepare the financial system. An accounting system is the system used to manage
the income, expenses, and other financial activities of an organization and is capable of
generating comprehensive statistical reports that provide management or interested parties
with a clear set of data to aid in the decision-making process.

INTERNAL CONTROL SYSYTEM:

Any information which is enter in the entity internal control system verify this information that
this information which is enter in the system is according to company policy or Management
Then this information is go to in accounting system. If the information incorrect then reject this
information and known as In-effective information if the information right then this is known as
effective information. This internal control is a system within a system, but plays a key role in
the success of the accounting system. The internal controls protect our businesses they ensure
that the information we're receiving is accurate and timely, and that all regulatory
requirements are being met.

INTERNAL CONTROL
SYSTEM

ACCOUNTING
SYSTEM

FINANCIAL SYSTEM