methods and policies designed to prevent fraud, minimize errors, promote operating efficiency, and achieve compliance with established policies. Even more narrowly, procedures and policies designed to prevent or uncover errors and fraud.
A set of policies and procedures to prevent deliberate or misguided use of funds for unauthorized purposes.
An internal control structure designed to ensure that the assets of the County are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes the 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management.
A plan of organization under which employees' duties are so arranged and records and procedures so designed as to make it possible to exercise effective accounting control over assets, liabilities, revenues, and expenditures.
MIT's internal control structure consists of policies & procedures, organizational design, and physical barriers employed by MIT's central offices and DLCs to achieve their objectives. These controls can be preventive or detective. An Internal Control Questionnaire (ICQ) is included as Appendix B. The questionnaire is designed to assist Institute DLCs in performing a self-review of controls over financial systems and activities.
The policies and procedures, the documentation, and the plan for an organization that authorize transactions, safeguard assets, and maintain the accuracy of financial records.