System of Internal Control and Company Policies
There are many specific definitions of internal control, which take slightly different meanings depending on which group of functions is involved. At the same time, the words frequently carry a narrow meaning of the accounting and auditing discipline. Conceptually, however, the idea of internal control has a wider significance, which can be summed up in this way: internal control encompasses all steps to be taken by a company to make sure it doesn’t fail. Even the standard accounting definition of internal control’s objectives, provided in Statement on Auditing Standards No. 55, issued by Audited Standards Board of American Institute of Certified Public Accountants (AICPA), goes outside narrow professional scope and includes
reliability of financial reporting;
laws and regulation compliance; and
operational effectiveness and efficiency.
KeywordsEmployee Policy Business Policy Company Policy Audit Standard Narrow Meaning
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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© Marina Guzik 2011