What Are Internal Controls?

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Internal controls are systematic measures (reviews, checks, methods and procedures) established by a company to;

• conduct its business in an orderly and efficient manner,
• safeguard its assets and resources,
• deter and detect errors, fraud, and theft,
• ensure accuracy and completeness of its accounting data,
• produce reliable and timely financial and management information, and
• ensure adherence to its policies and plans.

(Definition comes from: http://www.businessdictionary.com/definition/internal-control)

Internal controls can be defined in 5 broad categories:
1. Control environment
2. Risk assessment
3. Information controls
4. Communication controls
5. Monitoring

An internal control review determines whetherinternal controls exist and are sufficient. To help prevent fraud, companies need to take stock of their internal controls.

Some questions you may want to ask:

• Are internal control policies adequate and up to date?
• Have the internal control policies kept up with technology advances?
• Have internal controls kept up with the business environment?
• Have internal control policies kept up with the growth of the client?
• Are internal controls being implemented and reviewed properly?

What questions do you have?

We are happy to help. Please post your comment below or call Lisa Byrne, Audit Manager at Cooney Carey, on 01 677 9000. Alternatively, send her an email: lbyrne@cooneycarey.ie 

If this article helped you, please share it with other businesses.

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    Posted on May 10, 2016 by Lisa Byrne