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Internal control systems

Information

4.1 Information flows for management

 There should be effective channels of communication within the organisation, so
that all managers receive timely information that is relevant to the performance of
their tasks and duties

 Information should be provided regularly to management so that they can monitor
performance with respect to efficiency, effectiveness in achieving targets,
economy and quality

 Managers need both internal and external information to make informed
business decisions and to report externally

 The actual information provided to management varies depending on the
different levels of management

– Strategic – focussed on planning, predominantly external

– Tactical – focussed on implementation of strategic plans

– Operational – focussed on the operation of specific internal controls

4.2 Information characteristics and quality

The information received by management needs to be of a certain standard to be
useful in internal control and risk management and monitoring.

There should be an adequate, integrated, information system, supplying internal
financial, operational and compliance data and relevant external data.

The information should meet the criteria of 'good' information:

Accurate
Complete

Cost-beneficial
User-targeted

Relevant
Authoritative
Timely

Easy to use

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