Page 243 - F1 - AB Integrated Workbook STUDENT 2018-19

Audit and financial control

The meaning of internal control and

internal check

1.1 Introduction

Internal control is the process designed and effected by management
to provide reasonable assurance about the achievement of the entity’s
objectives with regard to:

 reliability of financial reporting

 effectiveness and efficiency of operations, and

 compliance with applicable laws and regulations

Internal check is an element of internal control, concerned with
ensuring that no single task is executed from start to finish by only one
single person. Each individual’s work is subject to an independent
check by another person in the course of that person’s duties.

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