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Auditing Principles of Internal Control

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What is the purpose of internal control? Why is internal control important?

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Solution Summary

In a 323 word solution, the response explains not only the defined purpose for internal control procedures, but also the practical application and result of those systems.

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What is internal control?
"The auditor's definition of internal control is a process, affected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: 1) reliability of financial reporting, 2) compliance with applicable laws and regulations, 3) effectiveness and efficiency of operations, and 4) safeguarding of assets." COSO www.coso.org

What is the purpose of internal control?
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