• Safeguarding client’s assets against:
    1. Misuse
    2. Misappropriation
    3. Manipulations
    4. Abuse of the Company’s assets (for reasons that will not benefit the Company)
    5. Facilitates optimal use of the Company’s assets.
  • Reduces audit fees. This is because less audit work is needed and less audit staff.
  • Increased efficiency through management supervision and a defined organisation chart. Routine and automatic checks also increase efficiency.
  • Chances of errors and frauds are minimised.
  • This ensures minimum losses, facilitates audit work and hence early reports and attainment of budgeted performance.
  •  Facilitates corrective measures in so far as the objectives of the business are better defined and therefore the facilities available can be suitably directed to their achievements.
  • Facilitates up to date records.
  • This is advantageous in that is prompts decisions through feed back to management which helps detect irregularities.
  • Leads to balanced opinion (unqualified report) improving public opinion of the business.
  • This helps in raising finances by selling shares through public sale and improving investment implementation.
  • It boosts morale of staff through motivation of supervision. This may lead to high output and high profitability.
  • ICS helps in the redress of disastrous decisions especially in high risk situation. This is done through close application of management controls in development situations.ICS assists in the co-ordination of operations. This is done through definition of duties and responsibilities of all employees and it boosts efficiency in the:
    1. Carrying out of operations,
    2. Efficiency in delegation,
    3. Efficiency in execution.

 Disadvantages of ICS to the Client

  • ICS is expensive to install and maintain. For example, the physical control security systems require qualified personnel to maintain them and constant servicing.
  • ICS could lead to a problem of over reliance on the ICS. This may lead to relaxation in supervision and allow manipulation of accounts and assets and can also bring about inefficiencies. Maintaining controls requires constancy and consistency.
  • If not well instituted it may encourage over staffing.
  • Rigid implementation may lead to a slow down in the operation of the business.
  • The ICS requires continuos updating as the organisation changes, if not the ICS may become increasingly obsolete.
  • Use of wrong controls may expose the Company to more problems, e.g. errors and frauds. These are more easily perpetrated if the ICS used is inappropriate.ICS may be frustrated if through changes in company organisation the checks become uncoordinated.