Internal Controls

Internal control is the systems, policies, procedures, and processes established by the board of directors, senior management, and other key personnel to safeguard an organization's assets, and limit or control the risks, in route to achieving the organization's objectives. The internal control process has five components: control environment; risk assessment; control activities; information and communication; and monitoring. Internal controls are important because they are the foundation to safe and sound accounting. A properly designed and consistently enforced system of operational and…