INTERNAL AUDITING: INTERNAL CONTROL


Management establishes and maintains internal controls to ensure that assets are protected, laws and ordinances are complied with, and that the mission of the organization is achieved. The duty of caring for public assets and serving citizens demands the most rigorous attention to internal controls.

Internal Control Factors

  1. Control Environment
    • Integrity and Ethical Values
    • Commitment to Competence
    • Management's Philosophy and Operating Style
    • Organizational Structure Assignment of Authority and Responsibility
    • Human Resource Policies and Practices
  2. Risk Assessment
    • Goals and Objectives
    • Risk Identification and Monitoring
    • Managing Change
    • Control Activities
    • Policies and Procedures
    • Control and Monitoring
    • Controls over Information Systems
  3. Information and Communication
    • Access to Information
    • Communication
  4. Monitoring
    • Management Supervision
    • Outside Sources
    • Response Mechanisms
    • Self-Assessment Mechanisms

A more detailed identification of internal control factors is available for management to use to determine their unit's internal control health. See Internal Control Assessment for Managers.