Internal Control Process

Definition:

      "A process designed to provide reasonable assurance regarding the achievement of objectives in (a) reliability of financial reporting, (b) effectiveness and efficiency of operations, and (c) compliance with applicable laws and regulations." (Bodnar & Hopwood, 1998, p. 23)

The elements:

Control environment
Risk assessment
Control activities
Information and communication
Monitoring

The main methods of implementation:

Establishment of responsibilities within an organization
Maintenance of adequate records
Segregation of duties

 

Source: Bodnar, G. H. and Hopwood, W. S. (1998). Accounting Information Systems (7th ed.). Englewood Cliffs, NJ: Prentice Hall.

Copyright 2000 Raymond S. Kulzick. All rights reserved. 000524.

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.

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Copyright 2000 Kulzick Associates, PA - Last modified: September 13, 2008