The supervisory committee of a credit union has a responsibility of establishing and setting internal controls...

The supervisory committee of a credit union has a responsibility of establishing and setting internal controls for the credit union. Define what an internal control is and provide examples of polices and procedures organizations can utilize as internal controls.

Expert Solution

Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Internal controls are the methods employed to help ensure the achievement of an objective. They are tools used by managers every day.

Writing procedures to encourage compliance, locking your office to discourage theft, and reviewing your monthly statement of account to verify transactions are common internal controls employed to achieve specific objectives.

All managers, from the unit level to the President of the University, use internal controls to help assure that their units operate according to plan. And the methods they use--policies, procedures, organizational design, and physical barriers--constitute the internal control structure of the Indiana University.

ekkarill92 answered 1 year ago

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