W H A T IS

IN T E R N A L
C O N T R OL
Presented By:
Mars Vircen Rodriguez
FMGT 3A
 in t e rn a l
control
Internal controls are the mechanisms, rules, and
procedures implemented by a company to ensure
the integrity of financial and accounting information,
promote accountability, and prevent fraud.
 ortance
imp

Effective internal control reduces the risk of asset

loss, and helps ensure that plan information is
complete and accurate, financial statements are
reliable, and the plan's operations are conducted in
accordance with the provisions of applicable laws
and regulations.
excessive credit booms

unsustainable macroeconomic policies

large capital inflows

without internal controls

example
 segregation of
duties

When work duties are divided or

segregated among different people to
reduce the risk of error or
inappropriate actions.
physical control

When equipment, inventories, securities,

cash and other assets are secured
physically. This can occur through the use of
locks, safes, or other environmental controls.
Access is restricted to those with authority
to handle them.
Reconciliations

Comparisons are made between

similar records maintained by
different people to verify transaction
details are accurate and that all
transactions are properly recorded.
thank
for y o u
listening