The internal control system basically relies on three principles. Which ones?

In my opinion the main ingredients for a successful internal control policy are :

1. Reporting & Variance / deviation analysis vis-a-vis  standards to identify problems and then resolve them. This is "Management by Exception" principle as seen from the prism of internal controls.

2. Any activity having significant effect on quality, costs, revenue should be routed through at least2 individuals for automatic checks and balances to avoid mistakes or frauds.

3. Periodic reviews by a set of individuals who are not directly responsible for the particular activity e.g. auditor, board committee, external consultants.

I agree with my colleagues

• Establish Responsibilities
• Maintain Records
• Insure Assets by Bonding Key Employees

1. Clear definition of objectives, policy and job profile.

2. Establishing controls at significant processing points through clear cut understanding of accountability and responsibility among staff members.

3. Segregtion of duties and properly documenting organisational structure

Thanks for invitation,

It depends on :

1- Information and communications.

2- Authorities and responsibilities.

3- Authenticity. 

Three basic principles on which internal control relies are 1- Maintaining record 2- Segregation of duties

3- Establishing responsibilities.