CFO Techniques: A Hands-On Guide to Keeping Your Business Solvent and Successful

System of Internal Control and Company Policies

There are many specific definitions of internal control, which take slightly different meanings depending on which group of functions is involved. At the same time, the words frequently carry a narrow meaning of the accounting and auditing discipline. Conceptually, however, the idea of internal control has a wider significance, which can be summed up in this way: internal control encompasses all steps to be taken by a company to make sure it doesn’t fail. Even the standard accounting definition of internal control’s objectives, provided in Statement on Auditing Standards No. 55, issued by Audited ...