Internal Controls

An internal control system consists of all the policies and procedures (internal controls) adopted by the directors and management of an entity to ensure, as far as practicable, the orderly and efficient conduct of its business, including adherence to internal policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The internal control system extends beyond those matters which relate directly to the accounting system.


Control environment is the framework within which controls operate. The control environment is very much determined by the management of a business