Basics of internal control

Basics of internal control

1. Internal control is a process

   • Combinations of systems , policies and procedures to address the risks

2. IC is effected by people

   • Does not solely consist of policy and procedures
   • Involves people at every level of entity carrying out tasks

3. IC not sole responsibility of management

   • Directors
   • Management
   • Ordinary employees

4. Internal control is not static

   • It is a response to a riks. Risks change therefore response must change

5. IC is not foolproof

   • IC only provides reasonable assurance to the risks

6. IC not single control for single risk

   • Best achieved in combinations
   • Policies and procedures work in conjunction