Internal Control Florida Gulf Coast University（内部控制佛罗里达海岸大学）.pdfVIP

Internal ControlInternal Control An Overview August 2007 Internal Control - An Overview 1 Internal Control? August 2007 Internal Control - An Overview 2 Management’s Role ♦ Management’s role is to provide leadership that the organization needs to achieve its goal and objectives. ♦ Internal control is a technique used by managers to help an organization achieve these objectives.help an organization achieve these objectives. August 2007 Internal Control - An Overview 3 Four Basic Functions of Management Planning Organizing Directing Controlling Internal control is this 4Internal control is this 4thth function.function. Adequate internal controls allow managers to delegate responsibilities with reasonable assurance that what they expect to happen, actually does. Managers must develop internal controls for each activity for which they are responsible. August 2007 Internal Control - An Overview 4 Five notable concepts: • Internal control is a process integrated with all other processes within an agency. • Internal control is established, maintained, and monitored by people at all levels within an agency. • Internal control increases the possibility of an agency achieving its strategic goals and objectives. •• Internal control must be cost effective and cost ofInternal control must be cost effective and cost of implementation should not exceed the benefits derived from having the control in place. • System of internal control in an organization is the responsibility of all employees, from management who design, implement, and maintain controls to