What is internal control and what does internal control mean

Internal control is not only the division of labor, but also includes a set of management systems and implementation procedures for various businesses of the enterprise. A good set of complete internal control system can prevent the fraud of employees within the enterprise to the greatest extent, and can also avoid the arbitrary command of business decision-makers to cause the enterprise to fall into a high-risk business state

Internal control, i.e., internal control, refers to a series of control methods, measures and procedures formulated and implemented by the unit in order to improve the quality of accounting information, protect the safety and integrity of assets, and ensure the implementation of relevant laws, regulations and rules and regulations.

Accurate understanding of the definition of internal control: People in different departments will have different views on internal control from different perspectives. Modern internal control theories attempt to come up with a universally acceptable definition of internal control in order to meet the needs of different organizations.

COSO (1994), an American auditing authority, defines internal control as a process that is influenced by people at different levels of an organization, and this process is designed to provide reasonable assurance to achieve the following three objectives: the effectiveness and efficiency of operations; reliability of financial and accounting reports; Compliance with current regulations.

Internal control and internal control system are two different concepts: internal control is a process that provides reasonable assurance to ensure that the three objectives are achieved, rather than absolute assurance. The internal control system is a variety of policies and procedures adopted within the organization to achieve business objectives, improve the effectiveness and efficiency of the organization's operation, ensure the reliability and accuracy of financial reports, and ensure compliance with laws and regulations.

Note: COSO is the abbreviation for the Committee of Sponsoring Organizations of the National Commission of Fraudulent Financial Reporting.

Internal control means short for internal control. It refers to the internal control operation of a general company. Internal accounting control refers to a series of control methods, measures and procedures formulated and implemented by the unit in order to improve the quality of accounting information, protect the safety and integrity of assets, and ensure the implementation of relevant laws, regulations and rules and regulations.

Historical Development:

The first stage, the prototype of internal control, Montmary 1912 internal containment. The main content is the separation of duties and account verification.

The second stage is the initial formation of internal control, which gradually evolves from internal control to a control system composed of organizational structure, job separation, business procedures, handling procedures and other factors.

The third stage is the internal control structure of the mature stage. Representative, Auditing Standards Bulletin No. 55 issued by AICPA in 1988, which is based on:"The internal control structure replaces the internal control and proposes the three elements of the internal structure, the control environment, the accounting system and the control procedures.

Internal control is the abbreviation of internal control. It refers to the internal control operation of a general company. Internal accounting control refers to a series of control methods, measures and procedures formulated and implemented by the unit in order to improve the quality of accounting information, protect the safety and integrity of assets, and ensure the implementation of relevant laws and regulations.

Internal control is to establish a management relationship with mutual constraints, with the aim of improving business management;

Internal control methods mainly include environmental control, risk assessment, activity control, information and communication, monitoring, etc.;

The focus of internal control is on management processes, systems and post constraints, the effectiveness of systems, key positions, etc.;

The object of internal control is all aspects of the entire enterprise.

Hello, I'm glad to answer what does internal control mean? As follows: Internal control is the abbreviation of internal control.

It refers to the internal control operation of a general company. Internal accounting control refers to a series of control methods, measures and procedures formulated and implemented by the unit in order to improve the quality of accounting information, protect the safety and integrity of assets, and ensure the thorough implementation of relevant laws, regulations and rules and regulations. Additional Information:

Internal control is an objective need for enterprises to keep up with the trend of the times and improve operational efficiency; Internal disorder control is an urgent need to improve international competitiveness; Internal control is the need to ensure the smooth implementation of the company's rules and regulations and business decisions; Internal control is the need to provide true, effective and reliable accounting information; Internal control is the need for enterprise risk prevention; Internal control is the need to ensure the security of enterprise property.

Summary. Hello, I am happy to serve you, internal control management is a series of activities for enterprises to ensure the normal, orderly and legal operation of business management activities, and to take effective supervision of finance, people, assets and work processes. The internal control of the enterprise requires the accuracy, authenticity, effectiveness and timeliness of the enterprise's assets and financial information; Ensure the effective control of employees, work processes and logistics; Establish an effective supervision mechanism for the business activities of enterprises.

Internal control management is a series of activities for enterprises to ensure the normal, orderly and legal operation of business management activities, and to implement effective supervision of finance, people, assets and work processes. The internal control of the enterprise requires to ensure the accuracy, authenticity, effectiveness and timeliness of the company's assets and financial information; Ensure the effective control of employees, work processes and logistics; Establish an effective supervision mechanism for the business activities of enterprises. <>

Further information: Article 71 of the General Principles of Enterprise Finance Enterprises shall establish and improve the internal financial supervision system. The purpose of internal control is to ensure the accuracy, authenticity, effectiveness and timeliness of enterprise assets and financial information; Ensure the effective control of enterprise employees, work processes and logistics; Establish an effective supervision mechanism for the business activities of enterprises to ensure that enterprises have good self-regulation capabilities.