What are internal controls?

Internal controls are ‘Systematic measures (such as reviews, checks and balances,
methods and procedures) instituted by an organization to

1. Conduct its business in an orderly and efficient manner,
2. safeguard its assets and resources,
3. Deter and detect errors, fraud, and theft,
4. ensure accuracy and completeness of its accounting data,
5. Produce reliable and timely financial and management information, and
6. ensure adherence to its policies and plans’ ( www.businessdictionary.com )

Controls serve as the first lines of defense against fraud and corruption including all types of financial wrong doing that might be perpetrated in or against an organization.

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