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Every business operates under the specified business environment, and this business environment is constructed from the combination of various natural and non-natural factors, both the factors are important for the firm in order to ensure the long term property and growth of the business. Further, these factors give both opportunities aswell as challenges to the firm, now it is up to the business entity, how it shall manage its growth and ensure its survival within the complex business environment. Further,the business environment is divided into the external business environment and the internal business environment. To meet the challenges and to resolve the issue of the external business environment a smart managerial person use the tool of continuous-scanning and analyzing of external environment factors as ways to resolve the challenges and to ensure the continued growth and development of business, while on the another hand, in order to manage the challenges of internal business environment,every business entity formulate a system call internal control system in order to ensurethe maximum use of business resource and to minimum wastage and losses. Theinternal control system is a specified system formulated on department wise with theobjective to prevent fraud and error at each department and with the objective tominimize the misuse and misapplication of a firm’s resources. We accept the systemof internal control, as the benefits of effectively formulated systems are comparativelyhigh than the limitation and the challenges which may occur on non-installation of aneffective internal control system. (Internal Control System: Definition, Components,Features (Explained). (2019).
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