Internal control

According to coso , Internal control is a process effected by an entities

board of directors and management and other personnel
Designed to provide reasonable assurance regarding the achievement
of objectives relating to operations, reporting and compliance
Objectives of internal control
. operations objective relate to the effectiveness and efficiency of
operations
. Reporting objective relate to internal and external financial and non-
financial reporting
. Compliance objective relate to the organization’s compliance with
laws and regulations
Fundamental concepts
1) Achieve its objective (operations, reporting, compliance)
2) It’s an ongoing process
3) It’s effected by people
4) Provide Reasonable assurance
. cost of an internal control system should not exceed the
expected benefit
. Overall impact of a control procedure shouldn’t hinder
operating efficiency
5) Must be flexible in order to adaptable