Internal Controls And Internal Control System

1580 Words7 Pages
b) The definition offered by the Charity Commission (CC), states that IC Internal financial controls are essential checks and procedures that help charity trustees to: i) meet their legal duties to safeguard the charity’s assets, ii) administer the charity’s finances and assets in a way that identifies and manages risk, and iii) ensure the quality of financial reporting, by keeping adequate accounting records and preparing timely and relevant financial information. The above definitions are relevant and in accordance to the objectives of IC systems, highlighted by Kaplan, (2012); which states that: Internal control embodies the following: • Controls attempt to ensure that risk, those factors which stop the achievement of company objectives, are minimised. • An internal control system comprises the whole network of systems established in an organisation to provide reasonable assurance that organisational objectives will be achieved. • Internal management control refers to the procedures and policies in place to ensure that company objectives are achieved. • The control procedures and policies provide the detailed controls implemented within the company. 2.3.0 What requirements are there for Internal Control (IC) and Audit? The numerous financial scandals have highlighted considerable fiduciary responsibilities of charitable organisation managers, including the relatively weak regulatory oversight of the not-for-profit sector. This claim reflects the list of events included
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