- This internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.
- Internal Control Objectives:
- Operations-effective and efficient use of its resources
- Reporting– reliability of reporting
- Compliance –compliance with applicable laws and regulations
- Control Environment- Assignment of roles, ethical value, management philosophy (5 principles, and 20 attributes)
- Risk Assessment-Identify internal and external risks and analyzed them (4 principles, and 27 attributes)
- Control Activities-Policies and procedures are established and implemented to help address identified risks (3 principles, and 16 attributes)
- Information and Communication-Relevant information is identified, captured, and communicated in a form and timeframe that enable people to carry out their responsibilities (3 principles, and 14 attributes)
- Monitoring-Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time (2 principles, and 10 attributes)
Internal Control over Financial Reporting (ICFR)