According to, control activities is refer to the area that where employee and managers can directly influences each other. Control activities include a variety of policies, procedure, practices that are designed to ensure that necessary actions are taken to enforce the policies established by management. Besides that, control activities required actions are taken to take in hand risks in the achievement of the organization's objective. Then, the internal of control system is defined as a process designed to provide rational declaration regarding the achievement of management. It based on the three factors which are consistency of financial reporting, operational effectiveness and efficiency, and agreement with laws and regulations.

Management of Bintang Sdn Bhd is responsible for sustaining a satisfactory system of internal control and also responsible for communicating the opportunity and duties of staff as a part of a control environment. They are also responsible to make sure that the other major areas of an internal control framework are done properly. Otherwise, the staffs of Bintang Sdn Bhd are responsible for carrying out the internal control activities set forward by management. So that, if the management and the staff are follow this responsibility, it a bit can help Bintang Sdn Bhd to ease their business risk.


According to the chart above; there are four major component of internal control system that Bintang sdn Bhd can use and also follow to assist them to diminish the business risk. The first component is risk assessment. In this element, it identifying the areas in which the greatest threat or risk of loss exist. To be most efficient, the greatest risk should receive the greatest amount of effort and level of control. For example,

Next element is control activities. Control activities are policies and procedure, in addition to those related to other components and established to enable the entity to address risk in the achievement of their objectives. A good internal control system should include the control activities listed below:

Control environment is the third elements of internal control system. This control environment is created by management through communication, attitude and example. These include a focus on integrity, a commitment to investigating discrepancies, diligence in designing systems and assigning responsibilities.

The last elements of the internal control system is monitoring and reviewing. The system of internal control should be periodically reviewed by management. By performing a periodic assessment, management assures that internal control activities have not become obsolete or lost due to turnover. They should also be enhanced to remain sufficient for the current state of risk.


There are three control processes which are prevention, detection, and correction. It means that prevents threats from occurring, detect problem if they occur, and change the system then the problem will not reoccur. So that, Bintang Sdn Bhd should follow these three control process to avoid them from facing any problem inside that company.


Bintang Sdn Bhd must control for prevention with designed to frighten problems before they arise. For example, if the management of Bintang Sdn bhd can immediately knows that their company has some misstatement of financial statement, they should quickly monitor back all their operations and inputs. With the quickly action, they try to predict possible problems before it occur and make some adjustments. Here are few examples that Bintang Sdn Bhd can pursue of preventive controls which are hire a qualified person to bring them inside their company, established the suitable procedure for authorization of transaction, using a well-designed documents to prevent any errors in future, using a proper cash budgeting system which it can monitor cash flow and forecast of future cash flows, and etc.


Detection is discovering the entire control problems soon after it arise. It will help with So that, it can avoid the problem from attack Bintang Sdn Bhd. These are other tools that can help Bintang Sdn Bhd before the problem is arising. They can duplicate checking of all the calculations, report the past outstanding accounts on time, verify proper use of pre-numbered documents which is do the checking for missing document number, invoices ,etc; give a complete monthly trial balance, and etc.


A control for correction is the procedure put in place to prepare problems discovered by detective controls. This step is taken to identify the main cause of problem and to correct errors arising out of problem. Other than that, the correction is should be taken by Bintang Sdn Bhd to modify the processing system in order to minimize the future incident of the problem. As an example, the reports of that month may indicate an unusually amount. The investigation reveals that the accountant is trying to manipulate that money from the Bintang Sdn Bhd Company. So, the solution is, double checking of the record before make a finalization of the monthly record.


With a good internal control system in Bintang Sdn Bhd, other concern to keep includes is they have to regularly communicate updates and reminders of policies and procedures to the staff through staff meetings and other communication methods. Other than that, from time to time, they have to assess risks and the level of internal control required to protect all the records keeping to those risks. The management also responsible for making sure all the staffs is familiar with their policies and any changes of those policies. Subsequently, with internal control system, it will very confirm that all the transaction are authorized and recorded.

Source: ChinaStones -

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