An internal control is a process, implemented by an organization’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of the organization’s objectives.
The process utilized to design and implement appropriate controls requires a methodology that begins with understanding an organization’s objectives. Once the objectives are understood it is possible to determine the risks that may prevent the objectives from being realized.
Internal control analysis focuses on developing controls that minimize or eliminate the risk and give the objective the best odds of being realized. The internal control design process seeks to design and implement internal controls that address the risk in an efficient and effective manner. In other words, there must be a consideration not only of the impact form risks, but also of the costs associated with implementing internal controls.
Social Risk Services‘ professionals rely on the internal control model established by COSO – the Committee of Sponsoring Organizations of the Treadway Commission.
Contact Social Risk Services at Info@SocialRiskServices.com or 310.408.6963 to discuss how we can help your organization design an effective internal control environment that addresses the organization’s risks and risk profile.