Internal controls are in place for a reason. They help maintain the control environment and establish efficient and effective processes. They also serve as a mitigation technique for identifying when processes have changed and when procedures need to be adjusted. In today’s business world, all personnel must understand the concept of internal control, how it should be utilized, and its benefits.

The purpose and value of internal controls are often miss-understood and misapplied by management. Internal controls should be viewed as a value-oriented activity that assists the organization in the effective execution of its objectives. Properly designed and executed controls are the key to ensuring this view. 

A previous course “The Manager’s Responsibility for Internal Control”, addressed these concepts at a higher level. This course will further explore the types of ICs, how they can be properly utilized, and the cost-benefit considerations for implementation.

Field of Study: Accounting