Questions and Answers
1. What are internal controls?
According to the Committee of Sponsoring Organizations of the Treadway Commission, "internal control is the process by which an entity's board of directors, management and/or other personnel obtain reasonable assurance as to achievement of specified objectives; it consists of nine interrelated components, with integrity, ethical values and competence, and the control environment, serving as the foundation for the other components which are: establishing objectives, risk assessment, information systems, control procedures, communication, managing change, and monitoring."
