Internal control is a process for consistently meeting organizational goals for operational effectiveness and efficiency, accurate reporting, and compliance with laws, regulations, and policies. While often referred to in a financial setting, controls are used across all areas within an organization from
finance to IT to marketing. The importance of internal controls should never be minimized as they are an essential aspect of risk management, financial health, and compliance in business operations. They help a business owner (or the person/persons responsible) to monitor financial operations with accurate reporting and full oversight. This minimizes the risk of damage to a business through fraud and helps to protect a business’s financial resources. Internal control objectives are also aimed at ensuring businesses maintain accurate financial reporting and procedures to ensure compliance with company regulations and statutory laws.
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