Accounting › Section G · Fraud, internal controls, and cash › Topic G.2
Internal controls and their purpose
Internal controls are the everyday rules that keep assets safe and records reliable: who may sign a cheque, who counts the cash, who checks the bank statement. Designed well, they make honest mistakes visible and dishonest ones hard to hide.
In this topic
- What internal control means
- The COSO framework
- COSO's five components
- Control activities in practice
- Preventive and detective controls
- Controlling cash receipts
- Controlling cash payments
- Worked example: separating duties in a small office
- Worked example: diagnosing a weakness
- Why controls give only reasonable assurance
- Common mistakes to avoid
- Key takeaways
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