These slides briefly describes Internal control’s importance, purpose, & deficiency.

1. By Dr. O

2.  As we learn this week, internal control (IC) is
very important.
 Therefore, IC must be integral to
organization's financial and business policies
and procedures.
 Stakeholders must know that IC exists;
management must test IC at intervals to
ensure effectiveness.
 External auditors must test IC of public
companies and write a report on the
effectiveness or lack (deficiency) of IC.

3.  Protecting resources against waste, fraud,
and inefficiency;
 Ensuring accuracy and reliability in
accounting and operating data;
 Securing compliance with organizational
policies;
 Evaluating organizational units’ level of
performance.

4.  Indirectly "opens door" to fraud and losses.
 Must be promptly corrected once known.