Business Administration 2257 Chapter Notes - Chapter 7: Cash Cash, Internal Control, Risk Assessment
Document Summary
Internal control consists of all the related methods and measures adopted within a company to help it achieve reliable financial reporting, effective and efficient operations, and compliance with relevant laws and regulations. 4. intentional errors, management must design policies and procedures to address the specific risks faced by the company. Information and communication the internal control system must capture and communicate all pertinent information to the appropriate internal and external users: monitoring internal control systems must be monitored periodically for their adequacy. Control activities form the back cone of a companies efforts to address the risks it faces. The specific activities used by a company differs depending on managements assessment of the risks: this assessment is also heavily influenced by the size and nature of the company. Control activities that apply to most companies include the following: authorization of transactions and activities, segregation of duties, documentation, physical controls, independent checks of performance, human resource controls.