Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
1. People at every level of an organization affect internal control
Internal control is, to some degree, everyone's responsibility. In every organization there will be an independent Auditor's team who would check for these controls in place. And we at GMS Software Solutions would enable your resources to do so.
2. Effective internal control helps an organization achieve its operations, financial reporting, and compliance objectives.
Effective internal control is a built-in part of the management process (i.e., plan, organize, direct, and control). Internal control keeps an organization on course toward its objectives and the achievement of its mission, and minimizes surprises along the way. Internal control promotes effectiveness and efficiency of operations, reduces the risk of asset loss, and helps to ensure compliance with laws and regulations. Internal control also ensures the reliability of financial reporting (i.e., all transactions are recorded and that all recorded transactions are real, properly valued, recorded on a timely basis, properly classified, and correctly summarized and posted).
3. Internal control can provide only reasonable assurance - not absolute assurance - regarding the achievement of an organization's objectives.
Effective internal control helps an organization achieve its objectives; it does not ensure success. There are several reasons why internal control cannot provide absolute assurance that objectives will be achieved: cost/benefit realities, collusion among employees, and external events beyond an organization's control.
Internal control consists of five interrelated components as follows:
We would help you in this journey of Transformation.