Importance of internal control in an organization

Introduction
What are internal controls?
They are processes, elements such as policies, procedures and systems that are
established, operated and monitored by officers responsible for governance and
management of the public authority, to provide reasonable assurance regarding the
achievement of the public authoritys objectives.
Internal controls are designed to provide reasonable assurance to the responsible
Chief Executive ,Governing Authority, Management and most importantly to
Shareholders of an organization in relation to the:

effectiveness and efficiency of operations;

reliability of management, financial and taxation reporting;

appropriate management and control of risk; and
compliance with applicable legislation, sub-ordinate legislation and other
Financial management policies of the State.

An effective internal control environment involves the systematic review, appraisal

and of financial reporting (including management, taxation and budgetary) and
operational control systems and their effectiveness, including (but not limited to)
the:

relevance of established plans, policies, and procedures and the extent to

which the public authority is complying with these;

review of committees, operations and programs and outcomes to ascertain

whether results are consistent with established objectives and goals;

economy and efficiency with which resources