• This internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operationsreliability of financial reporting, and compliance with applicable laws and regulations.
  • Internal Control Objectives:
    • Operations-effective and efficient use of its resources
    • Reporting– reliability of reporting
    • Compliance –compliance with applicable laws and regulations
    • Components
    • Control Environment- Assignment of roles, ethical value, management philosophy (5 principles, and 20 attributes)
    • Risk Assessment-Identify internal and external risks and analyzed them (4 principles, and 27 attributes)
    • Control Activities-Policies and procedures are established and implemented to help address identified risks (3 principles, and 16 attributes)
  • Information and Communication-Relevant information is identified, captured, and communicated in a form and timeframe that enable people to carry out their responsibilities (3 principles, and 14 attributes)
  • Monitoring-Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time (2 principles, and 10 attributes)

Internal Control over Financial Reporting (ICFR)

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