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 Who is responsible for establishing a private company's internal controls?A statement that management and the board of directors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting.
Who are the parties responsible for and affected by internal control?PARTIES RESPONSIBLE FOR AND AFFECTED BY INTERNAL CONTROL
These include management, the board of directors (including the audit committee), internal auditors, and external auditors. The primary responsibility for the development and maintenance of internal control rests with an organization's management.
Who is responsible for a company's internal control system quizlet?A) A company's outside auditor is responsible for the company's internal control system. B) One of the major purposes of internal control is to ensure that the assets are safeguarded.
Who bears primary responsibility for maintaining effective internal control over financial reporting how can you tell?The Corporation's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting.
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