Internal controls are processes designed to provide reasonable assurance of reliable information, compliance with laws and regulations, and achievement of objectives. There are five components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring. The control environment includes demonstrating integrity and values, board oversight, management structures, competence, and accountability.

1. INTERNAL
CONTROL
group presentation

2. Internal Controls
Is a process, affected by an entity’s board of
directors, management, and other
personnel, designed to provide reasonable
assurance: That information is reliable,
accurate, and timely. Of compliance with
laws, regulations, contracts, policies, and
procedures.
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3. There are five interrelated
components of an internal control
framework:
· Control environment.
· Risk assessment.
· Monitoring.
· Information and Communication.
· Control activities.
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4. “ Control Environment
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● The organization demonstrates a commitment to integrity and ethical
values.
● The board of directors demonstrates independence from management
and exercises oversight of the development and performance of internal
control.
● Management establishes, with board oversight, structures, reporting
lines, and appropriate authorities and responsibilities in the pursuit of
objectives.
● The organization demonstrates a commitment to attract, develop, and
retain competent individuals in alignment with objectives.
● The organization holds individuals accountable for their internal control
responsibilities in the pursuit of objectives.

5. Risk Assessment
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● There is a susceptibility to or history of
waste, fraud, or errors
● Changes have occurred in the chapter’s
organizational structure, systems, or
personnel
● Controls have not been reviewed for a
substantial period of time

6. “ Monitoring
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● Perform ongoing monitoring.
● Conduct separate evaluations.
● Report deficiencies.

7. Information and Communication
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● Information is necessary for the business to carry out
internal controls and responsibilities and in achieving
objectives.
● Communication includes both internal and external
communication. It provides the business with information
needed to carry out data to day internal control activities.
● Communication enables employees to understand internal
control responsibilities and their importance to the
achievement of objectives. It also allows for upward flow of
operating information to management.

8. Control Activity
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● Ensures management directives are achieved.
● Necessary actions are taken to address such risks to achieve the
entity's objectives.
● Includes the following activities:
 Establishing responsibility
 Segregation of Duties
 Verification Physical Securities
 Maintaining Adequate Documentation
 Independent verification