WHAT IS THE INTERNAL CONTROL?
In accordance with the purposes of the administration, determined policies and legislation;
-To carry out the activities in an effective, economical and efficient manner,
-Protection of assets and resources,
-Keeping accurate and complete accounting records,
-Timely and reliable production of financial and management information
created by the administration to provide;
-Organization,
-Method,
-Processes and
-Internal audit
includes financial and other controls.
Elements of The Internal Control
Control Environment : The control environment helps with making sure that an organization is adhering to regulatory compliance requirements. The control environment factors include the integrity, ethical values, and competence of the entity's people; management's philosophy and operating style; the way management assigns authority and responsibility, and organizes and develops its people; and the attention and direction provided by the board of directors.
Risk Management: The Risk management is an ongoing activity that takes into account changes in current conditions. Risks can pertain to internal and external factors. The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system.
Control Activities: All kinds of preventive, detective and corrective control activities are determined and implemented. Control activities usually involve two elements: a policy establishing what should be done and procedures to effect the policy. All policies must be implemented thoughtfully, conscientiously and consistently.
Information And Communication: All kinds of information that the administration may need are appropriately recorded, classified and communicated in a way and in a timely manner so that those concerned can fulfill their internal control and other responsibilities.
Monitoring: It is a process that evaluates the quality of the system's performance over a period of time. Internal Control systems and activities are constantly monitored, reviewed and evaluated.
