Internal ControlsInternal control is all of the policies and procedures management uses to achieve the following goals. Show
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 not part of internal control components?All of the following are components of internal control except: Risk assessment process.
Which of the following is not an internal control?Answer: c.
Hence, collusion is not a type of internal control.
What must be included in management's report on the company's internal controls?Management reports typically discuss the following topics:. Financial statement presentation.. The purpose, nature and components of the company's internal controls.. The role of internal audit.. The role of the audit committee.. The role of the independent auditor.. What are the 4 types of internal controls?Pre-approval of actions and transactions (such as a Travel Authorization) Access controls (such as passwords and Gatorlink authentication) Physical control over assets (i.e. locks on doors or a safe for cash/checks) Employee screening and training (such as the PRO3 Series to increase employee knowledge)
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