What is internal control?

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Accepted Answer

Internal control refers to the processes, policies, and procedures implemented by an organization to safeguard its assets, ensure accuracy of financial records, and promote operational efficiency.

Internal control is a system of checks and balances designed to prevent errors, fraud, and misuse of resources.
It includes activities such as segregation of duties, authorization and approval processes, physical safeguards, and regular monitoring and review.
Examples of internal control measures include requiring dual signatures for financial transactions, conducting regular inventory counts, and implementing access controls for computer systems.
Internal control helps in minimizing risks, ensuring compliance with laws and regulations, and providing reliable financial information for decision-making.
It is an integral part of corporate governance and is essential for maintaining the integrity and reliability of an organization's operations and financial reporting.

What is internal control?

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