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Internal Controls
Internal controls are an essential part of a company's financial and business policies and procedures. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as "a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations" (COSO).
Internal control systems function at different levels of effectiveness. An effective internal control system is one that provides reasonable protection of assets, the reliability of financial information, and the compliance with laws and regulations (UCOP). An effective internal control helps the organization not only achieve its goals and mission, but also helps the organization promote more effective operations and reduce the......
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Title: Internal Controls
Approximate Word Count: 892
Approximate Pages: 4 (250 words per double-spaced page)
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