Internal Control and Risk Evaluation

p Risk Evaluation and Mitigation by Internal Control

Table of contents

Cover Page 1

Table Of Contents 2

Introduction 3

AIS at Kudler Fine Foods 5

Risk Evaluation and Mitigation by Internal Control 7

Conclusion 11

Reference 12 Introduction

Internal control is defined as a process effected by an organization 's structure , work and authority flows , people and HYPERLINK "http /en .wikipedia .org /wiki /Management_information_system \o "Management information system " management information systems designed to help the organization accomplish specific goals or objectives . It is a

means by which an organization 's resources are directed , monitored , and measured . It plays an important role in preventing and detecting HYPERLINK "http /en .wikipedia .org /wiki /Fraud " \o "Fraud " fraud and protecting the organization 's resources , both physical (e .g , machinery and property ) and intangible (e .g , reputation or intellectual property such as trademarks . At the organizational level , internal control objectives relate to the reliability of financial reporting , timely feedback on the achievement of operational or strategic goals , and compliance with laws and regulations . At the specific transaction level , internal control refers to the actions taken to achieve a specific objective (e .g , how to ensure the organization 's payments to third parties are for valid services rendered ) Internal control procedures reduce process variation , leading to more predictable outcomes

According to the COSO Framework , everyone in an organization has responsibility for internal control to some extent . Virtually all employees produce information used in the internal control system or take other actions needed to effect control...