Internal Control-Intergrated Framework Paper

Internal controls and recognizing risks are an important to an organization in order to keep structure, policies and procedures, prevent fraud and embezzlement, data integrity secured and physical

In an internal control standards system, there are five components that is known to be effective which has gained world acceptance. These five components were initially presented by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). They believe that these standards could effectually and capably develop and uphold internal control systems. This could be an enrichment of getting engage with the entity’s objectives and adaptation to business and operating environments successfully (Everson, et al., 2013). There are five integrated components that are used accordingly which is starting from control environment. This becomes the initial component in which it provides the foundation for implementing internal control across

Internal control system of an entity is strictly interrelated to the structure used by management to oversee the activities of the organization. However,

Internal controls are policies, procedures, methods and measures to provide reasonable assurance. There are four general objectives of internal control: 1. Assets are safeguard and used for business purposes 2. Accounting

Internal controls are important to a business. The internal controls provide a safeguard against errors in the accounting system as well as the detection and prevention of fraud. With the inflows of the company come many risks that need to be considered. The ways in which cash, sales, accounts receivable, inventory, and production are handled within the company are different for each division. The internal controls may vary from department to department, but the end result is to protect the company from the risks that can arise.

LJB Company management assessed the effectiveness of the company’s internal control over financial reporting as of 2011. In making this assessment, it used the criteria set forth by the Committee of Sponsoring

and internal controls. Internal control is a process for assuring achievement of an organization 's

This paper will be discussing Internal Controls in an Accounting Information System (AIS). We will be defining what an internal control is, what is its purpose and how it benefits entities. We will even touch on some of the problems that can occur with internal controls. There are five components that make up internal controls, they are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. These components will be discussed in more detail as well, we will look at what each of these does and what purpose they serve.

Internal control is defined as a process affected by an organization 's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization 's resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization 's

Among five interrelated factors composing internal control (Figure1: The COSO Cube), there is monitoring. This is mainly conducted by internal and external auditors to assess whether implemented internal control are functioning properly and effectively. In the course of this ongoing monitoring, if some deficiencies are to be discovered, then auditors report upstream to managers and the board. Compared with internal auditors, external auditors could bring about more

Internal control is the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. The term “controls” refers to any aspects of one or more of the components of internal control. (Ifac, 2010, p. 264)

Internal controls are methods that a company puts in place to ensure the integrity of financial reports and accounting information, and that they meet operational and profitability targets. They are implemented to assure the safe-guarding of assets as well as to detect fraud and any other errors. As such, they provide the company with reasonable assurance that specific objectives will be achieved.

Internal controls are controls that compromise of practices, policies and procedures employed by an organization to provide reasonable assurance that organization business objectives will be achieved.

Internal controls are the measures put in place by management in order to help achieve company objectives, ensure integrity and reliability of financial reporting, and comply with all applicable laws and regulations. Effective internal controls reduce the risk of fraud or theft, establish policies and protocols, reduce errors, and provide compliance to governing bodies. Internal controls over the financial reporting is a crucial piece of the controls. It is the responsibility of management to not only design and implement the controls over financial reporting, but also test the operating effectiveness of these controls. Inaccuracies on a financial statement can and may occur.

Internal control is define as the whole system of internal control, financial and otherwise established by management in order to carry on the business of the enterprise in an orderly manner and efficient, ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and the accuracy of records. - Dr. Kwame Aveh. (Auditing page 82-83, 2010)