Audit & Advisory Services is committed to assisting all levels of management and staff in the achievement of UCSF's goals and objectives by striving to provide a positive impact on the efficiency and effectiveness of operations. To that end, the internal controls information provided below covers the basic concepts of internal controls and their application to UCSF, including: Show
Internal controls summary Internal controls summaryInternal control is a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance:
Internal controls are intended to prevent errors and irregularities, identify problems and ensure that corrective action is taken. In many cases, process owners within your department perform controls and interact with the control structure on a daily basis, sometimes without even realizing it because controls are built into operations. Control definition reflects certain fundamental concepts:
Internal controls are established to further strengthen:
Internal control structureThe internal control structure is derived from the way management runs an operation or function and is integrated with the management process. Although the components apply to the entire University, small and mid-size departments may implement them differently than large ones do. Together, they are designed to provide reasonable assurance that overall established objectives and goals are met. The internal control structure consists of five inter-related components:
Internal control typesDifferent risks and environments require different controls. The control types described below can be used in combination to mitigate risks to the organization. Preventive and detection controls
Hard vs. soft controls
Manual vs. automated controls
Key vs. secondary controls
To identify the correct control(s) to implement, you must know what risks are present. To know what risks are present, you need to understand what objectives are being sought. Therefore, Objectives → Risks→ Controls. Internal controls in my departmentControl activities within your department may include the following:
Remember, everyone in your department has responsibility for internal controls. Note: The above internal controls definition was developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which is recognized by UCSF Audit & Advisory Services. What are the potential benefits of IT to internal control?Internal controls include:
Helping protect assets and reduce the possibility of fraud. Improving efficiency in operations. Increasing financial reliability and integrity. Ensuring compliance with laws and statutory regulations.
What are the 4 purposes of internal control?Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
What are the 3 internal control objectives?These objectives are broken into three areas operations, reporting, and compliance. Management must have a vision for the company's objectives they want to achieve before designing the internal control system. The five components of internal control help the entity achieve its objectives.
What are the 4 types of internal controls?Preventive Controls
Separation of duties. Pre-approval of actions and transactions (such as a Travel Authorization) Access controls (such as passwords and Gatorlink authentication) Physical control over assets (i.e. locks on doors or a safe for cash/checks)
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