Board of Directors : Group of persons elected by the shareholders of a corporation to govern and manage the affairs of the company. Internal Control : Process which providing reasonable certainty regarding the achievement of the objectives of efficiency and effectiveness of operating activities, reliability of accounting information, compliance with laws and regulations.
Offer does not apply to e-Collections and exclusions of select titles may apply. Offer expires June 30, Browse Titles. Add to Cart. Instant access upon order completion. Free Content. More Information. MLA Oba, Ibrahim. Oba, I. Oncioiu Eds. IGI Global. Internal control mechanisms and governance arrangements differ from one organization to the next. Internal control activities that are common include:. The process of ensuring that transactions are approved by the appropriate parties is referred to as "authorization.
Keeping a record of a transaction is referred to as documentation. For example, A purchase order will normally include information on the things being ordered, such as the date, quantity, and agreed-upon price. When an invoice is paid, for example, you would preserve proof of payment in the form of a receipt or a bank statement.
The process of reconciling transactions and activity with supporting paperwork is known as reconciliation. Reconciliation also entails comparing transactions to records and resolving any discrepancies. Physical security, cybersecurity, and procedural security measures, such as requiring several parties to sign off on major transactions, are all examples of security.
Transactions are made up of multiple steps. The term "separation of duties" refers to the practice of not enabling a single person to complete all of the steps in a transaction. For example, one person may record a transaction, while another authorizes it, and yet another reconciles it. Even the most effective internal control efforts will not be able to prevent every error. However, a good internal control structure will help to reduce errors.
Converging Ethics, Governance, and Culture This webinar will explore the importance for converging corporate ethics, governance, and culture as an essential safeguard to assure organizational performance is legal, ethical, and sustainable.
Learn how to identify areas of risk, proactively mitigate them to avoid significant fines and loss of reputation. The UN Convention Against Corruption and other international anti-corruption efforts This webinar will discuss various international efforts to fight corruption and potential pitfalls that US businesses must be aware of when conducting overseas business.
The Fundamentals of Corporate Fraud This webinar explores corporate fraud, fraud risk, and some of the common schemes, scams, and shams that threaten an organization's reputation and performance. The Fundamentals of Internal Auditing This webinar on Fundamentals of Internal Auditing training will discuss the differences between external and internal auditing and provide guidance on how to design and operate an effective internal auditing activity. Ethics in Your Organization This webinar will examine trends and requirements for good corporate governance and social responsibility.
Auditing your Compliance and Ethics program This Webinar will show you how to audit your compliance and ethics program by evaluating the design and operating effectiveness. By using this site you agree to our use of cookies.
Please refer to our privacy policy for more information. Corporate Governance and Internal Control Corporate governance is the process through which a company ensures that it makes ethical decisions that benefit all stakeholders, including employees, customers, and shareholders. The Importance of Corporate Governance In recent years, there have been rising concerns about CEO pay and a lack of diversity on boards of directors, as well as poor work procedures that lead to issues such as sexual harassment, racism, and labor exploitation not being effectively managed.
Internal Controls The practical aspects of corporate governance are internal controls. Internal corporate governance controls usually have the following objectives: Safeguarding assets: Internal controls are implemented to assist prevent asset loss as a result of human error or fraud. Mitigating errors: People inevitably make mistakes. Increasing efficiency: Internal controls can be time-consuming, which can reduce efficiency.
Keeping risk to a minimum: Regular risk assessments may be part of internal control procedures to identify and improve areas where inaccuracies arise. A company may participate in a variety of internal control actions to achieve these objectives, which fall into two categories: Preventative: Detective: Preventative control operations, as the name implies, are intended to prevent fraud and mistakes from occurring in the first place.
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