Elements of Internal Control 2 / 10

The internal control process includes:

  1. Control environment

    This refers to the culture of the organisation: Is good internal control valued and encouraged?

  2. Risk assessment

    Objectives should be set that allow associated risks to be clearly identified and analysed as part of the process of risk management. This includes matters leading to fraud and any circumstances where change could impact on internal control systems.

  3. Control activities

    Risk can never be eliminated, but suitable control activities are deployed to manage risks and provide reasonable assurance over the achievement of objectives.

  4. Information and communication

    How does management receive information that might indicate that internal control is failing?

  5. Monitoring activities

    Is the internal control system being kept up to date with respect to business developments? Is it operating properly?

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