A proper internal control policy can help your organization ensure that the organizational objectives in operational effectiveness and efficiency are achieved. Internal control also gives the assurance of reliable financial reporting that is in compliance with laws, regulations and policies. In short, everything that controls risks to an organization is involved in internal control.
Internal control plays an important role in detecting and preventing fraud as well as in protecting the organization’s resources. Effective internal control can significantly reduce the risk of asset loss, and help ensure that the company information is complete and accurate, the financial statements are reliable, and all the requisite laws and regulations are complied with.