Can you enumerate the features of a good internal control system?

Hi Frank,

From Process/Method Perspective:

1. Any internal control system should be assessing against external and internal policies, regulations and processes.
2. It should have clear objectives of why we are doing internal audit and how it related to the strategic objectives of the organization
3. KPIs that map the current baseline against the target.
4. Root cause analysis against results to understand why we are not meeting our targets, i.e. compliance objectives and what is the recommended actions.
5. Ensuring not only corrective actions are done, but lessons learned and preventive actions are put in place to improve compliance.

From Organization Structure Perspective:

1. Internal Control team has to have direct reporting structure to the C-Level to avoid any pressure put on them during reporting results and enable independent reporting structure.

From Tools Perspective:

1. Tools should be in place to support the internal control team to perform their job effectively and unbiased.

Thanks and best of luck

Hoda Omar, MBA, CSSBB®, PMP®, CSQA®,

Strategic Consultant

 

A system of internal control refers to the process by which firms maintain environments that encourage incorruptibility and deter fraudulent activities you management and employees. -An effective internal control includes organizational planning of a business and adopts all work-system and process to fulfill these objects : *Ensuring compliance with business policies and the law *Safeguard8 business asset from steal and wastage *Evaluating functions of each employee *Ensuring true and reliable operating data and financial statements

Can ensure the reliability and integrity of financial information

Ensure compliance

Accomplishment of goals and objectives

We can ensure  efficient and effective operations