In its publication International Good Practice Guidance: Evaluating and Improving Internal Control in Organizations, IFAC state that “Internal control is a crucial aspect of an organization’s governance system and ability to manage risk. It is also fundamental to supporting the achievement of an organization’s objectives and creating, enhancing, and protecting stakeholder value.” The importance of establishing and maintaining high quality internal control reinforces an organisation’s commitment to ethics and governance and the guidance states that effective internal control “creates a competitive advantage, as an organization with effective controls can take on additional risk” and “can actually save time and money” and promote “the creation and preservation of value.”
The statements in the guidance are backed by practical support that aims to help answer key questions. The guidance lists these questions as:
• What should the scope of internal control be?
• Who should be responsible for internal control?
• How should controls be selected, implemented, and applied?
• How can internal control be better integrated into the DNA of the organisation?
• How should the organisation report on internal control performance?
It can be found here.