Components of internal control

CONTROL ENVIOREMENT

• Ethical and integrity values
• Commitment to competence
• Participation to those charged with governance
• Management philosophies and operating styles
• Orginisational structures
• Assigning authority and responsibility
• Human resource policies and practices

RISK ASSESSMENT PROCESS

• Define objective of entity
• Identify and assess risk
• Respond to risk

INFORMATION SYSTEM

• Valid, accurate and complete
• Procedures and records to deal with transactions
• Related accounting records
• Capturing events
• Journal entries

CONTROL ACTIVITIES

• Action , procedures supported by policy
• Preventative and detective
• General and application

MONITORING OF CONTROLS

• Assessment of overtime
• Are objectives being met?
• Assessment at all levels
• Independant assessment
• -External audit
• -External bodies
• -Customers
• Remedial action