Padm 540 Final Exam

Administration of Financial ResourcesNameAffiliate InstitutionDateQuestion 1 Internal controls are the measures that are used by organizations to avoid misuse or misappropriation of assets. Internal controls serve as a system of checks and balances, which prevents the use of resources in a manner that they were not intended for. Internal controls are important for Not for Profits and governments because of their not for profit nature. Normally, businesses started for profit have controls that ensure that the business will continue being a going concern in the foreseeable future. Additionally, the management of the company is held accountable by the shareholders and investors and as such will take caution to ensure the business makes a return. According to Granof et al., (2015), governments and not for profits are not accountable to shareholders or investors and since they are not in the business of making a profit, they may have large sums of money as sources of revenue with zero incentive for the staff to be accountable.There are different types of controls; basic and non-basic controls. An example of a basic control instituted by an organization is the requirement of