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Governance, Risk, Audit & Privacy · Foundational

Internal Control

Process designed to provide reasonable assurance about achieving objectives in operations, reporting, and compliance.

Definition

Internal controls are policies, procedures, practices, and structures that prevent, detect, or correct undesired events. They provide reasonable, not absolute, assurance. Internal controls are designed by management and evaluated by auditors.

Example

Segregating payment entry from payment approval is an internal control against fraud.

Exam tip

Controls provide reasonable assurance only, never absolute assurance.

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