A Basic Framework for Internal Control

Internal control is not dictatorial leadership, a strict adherence to corporate documentation or an oppressive work environment. It is a complex, multifaceted, interrelated set of programs, processes and business activities that create an environment where a company can achieve its objectives. Functioning internal control provides reasonable assurance to a company’s leadership that the following objectives will be achieved: effective and efficient operations; reliable financial reporting; and compliance with applicable laws and regulations.

In this article, the author reinforces that the benefits of internal control for achieving effective and efficient operational objectives, including performance goals, safety and security of personnel and assets, and other business performance goals, is very important to a company’s continued success.