What is Internal Control, Why Businesses Need Internal Control?
Though each corporation aims to be profitable and operate in long run, it does not happen to be the reality in some cases.
The survey reports seriously indicate that “fraud” is still a big threat on companies.(For detailed reports and highlights, you may refer ACFE reports)
Companies ought to protect the organization and fight back with this grave danger, not only for themselves, but also for their employees and shareholders.
In order to achieve a healthy organization, each company needs to define reasonable assurance in;
- Effectiveness and efficiency in operations.
- Reliability in financial reporting.
- Compliance with applicable laws and regulations.
The major actors to achieve that assurance are;
- Independent Internal Controls unit
- Independent Internal Audit unit
- Audit Committee with experienced members.