DefinePK

Abstract

The purpose of this article is to formulate an internal controls framework for instituting effective internal controls for the Asian countries private sector companies and public sector organizations. This research formulates recommendations for company management and governmental organizations of Asian countries regarding effective internal controls. Latest trends formulated from modern industry’s best practices, private sector companies and public sector organizations including U.S. DOD can be utilized by the Asian countries as a useful document to design a suitable internal controls for the company management and governmental organizations. The recommendations of this research may also assist the investors to assess the financial health of a company prior to undertaking investment decisions. Based on findings of this article a company can formulate a course of action for the company management to guarantee effective internal controls to prevent assets misappropriations, fraudulent financial statements reporting and general financial frauds. The internal controls assist the management of an organization through preventive and detective controls. The internal controls contribute in accurate financial statements preparations, conclusive and error free financial records, fraud detection, prevention of unlawful acts and misappropriations, successful and efficient business operations, and assets’ conservations .