Documentation is mandatory to show company’s norm but highly unfavorable.Why?Simply speaking, it is not fun to read through uninteresting documents. Of course it is painful for me.

The most important thing is for these documents to be shared so that we should write them down simply as much as possible. In the reality, easy words are so close to our daily words can be understood in many ways. We have to use terminologies to specify the context to avoid our confusion.

Moreover, the penalties should be included in this system, especially personnel rules and assessent rule.Otherwise there will be the difficulties to handle some personnel problems.

Starting point is to design them in simple ways, it is impossible to prevenet all the fraud though. In addition, too detailed rules lead the inconsistency.

Lastly, for whom do we run this comeplex system? The system is taken care of by every employees but why not? I have a good story from a book to take this point.

Long time ago, one marchant run his business and some branches over his erea. He had concerns his staffs in branches run businees as he ordered. To be honest, he wished checking all the branched by himself but no time to do so because they were located in far away from his place. Thus he sent his agents to execute the audit instead. This is the origin of internal audit.

So all the internal control activities is for the company’s owner. In our capitalism society, the owner is stock holders in listed companies. Due to the lack of reasorse and capabilities, intenal auditoers manage the audit of companies to keep them healthy. That’s the goal.