By Dr. O

As we learn this week, internal control (IC) is very important. 

Therefore, IC must be integral to organization's financial and business policies and procedures.

Stakeholders must know that IC exists; management must test IC at intervals to ensure effectiveness.

External auditors must test IC of public companies and write a report on the effectiveness or lack (deficiency) of IC.

Protecting resources against waste, fraud, and inefficiency;

Ensuring accuracy and reliability in accounting and operating data;

Securing compliance with organizational policies;

Evaluating organizational units’ level of performance.

Indirectly "opens door" to fraud and losses. Must be promptly corrected once known.