Which of the following is a key purpose of a companys system of internal control?
Internal control is relevant to everyone in the workplace. It represents our moral responsibility to understand and comply with University policies and procedures, as well as to hold ourselves and one other accountable. The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and
protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws. Internal control—a process affected by a college or university's governing board, administration, faculty, and staff—is designed to provide reasonable assurance regarding the achievement of objectives in the following categories: This definition reflects certain fundamental concepts:
What are some examples of internal controls?Internal controls can take many forms. On a daily basis, we encounter many controls both inside and outside of the office. Everyday Personal Internal Controls
Internal ControlsInternal control is all of the policies and procedures management uses to achieve the following goals.
ResponsibilityManagement Responsibility: Administrative management is responsible for maintaining an adequate system of internal control. Management is responsible for communicating the expectations and duties of staff as part of a control environment. They are also responsible for assuring that the other major areas of an internal control framework are addressed. Staff Responsibility: Staff and operating personnel are responsible for carrying out the internal control activities set forth by management. Framework for Internal ControlThe framework of a good internal control system includes:
Internal Control Activities and Best PracticesInternal control activities are the policies and procedures as well as the daily activities that occur within an internal control system. A good internal control system should include the control activities listed below. These activities generally fit into two types of activities.
Click on the links below for information regarding these activities including best practices.
Other Internal Control Best PracticesWith a good internal control system in place, other considerations to keep in mind include:
Additional InformationWashington State Office of Financial Management's guide to internal control and auditing Which of the following is a purpose of an internal control system?Internal controls are intended to prevent errors and irregularities, identify problems and ensure that corrective action is taken.
What are the 4 purpose of internal control?Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
What are the 3 objectives of internal control?Control objectives are generally classified into three categories: operational, reporting, compliance.
What are the 5 key components of internal control?There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.
|