Internal control is a broad concept that involves internal controls that controls risks to an organisation.
The process assures an organisations accurate financial reporting, effectiveness and efficiency in operations and statutory compliance’s. It is a means by which an organisations resources are monitored, measured and directed playing an important role in preventing fraud and protecting the organisations resources.
The approach to Internal Controls should ensure that a sensible balance is maintained between the costs of implementing and monitoring the organisational framework and the benefits of such a framework.
The King Committee on Governance issued the King Report on Governance for South Africa 2009 stating that an audit committee is vital to ensure the integrity of integrated reporting and internal controls. The audit committee should have full oversight of financial reporting risks in order to align recommendations with global best practice business principles.
Conduct for boards and directors of listed companies, banks, and certain state-owned enterprises where established, including financial and regulatory aspects, but also advocated an integrated approach that involved all stakeholders.
Assisting businesses of any size, and in any sector to identify, manage and mitigate risks and thereby enable and ensure the safe execution and maintenance of projects, operations and everyday business activities.Risk Management