External and internal auditors, system designers, and operating managers are constantly faced with the task of designing internal accounting controls and evaluating existing systems of control, including the advisability of recommending and implementing changes to existing systems of control, including the advisability of recommending and implementing changes to existing control systems. The Handbook of Internal Accounting Controls presents a workable, intuitive approach to designing and/or evaluating both existing and proposed controls. It explains the reasons why particular controls are important, the practical factors that often diminish the effectiveness of well-designed controls, and the effect that can be expected if a particular control is omiited. In other words, the Handbook of internal Accounting Controls has been carefully designed to address the "why" of control evaluation procedures as well as the "how".

This Hanbook describes a practical approach to an essential element of the audit process : the study and evaluation of internal control to determine the nature, extent and timing of the audit process. It has been designed to provide valuable guidance for making decisions about the critical questions that arise during an audit engagement. Many of these decisions are also faced by system designers and those responsible for implementing controls.