Company internal control

The company’s activity is not an easy and always responsible business. Much of the firm’s internal affairs is based on mutual respect and trust. Unfortunately, there are still frequent cases when employees neglect the trust placed in them and commit actions that entail administrative, and sometimes even criminal liability. For this reason, it is necessary to carry out activities that can be designated as internal control.

The concept of internal control

A company’s own audit has many areas of application, but the main purpose can be found in the definition of this concept. Internal control is a set of measures carried out by an authorized person or group of persons, on the initiative of the head (in order to prevent possible threats).

Based on the definition, internal control is primarily aimed at identifying deficiencies and eliminating them in order to avoid the consequences of verification by state bodies.

Regulation function

Among other things, internal control has a regulatory function. A reliable and well-thought-out system for monitoring the activities of company employees precludes the possibility of unlawful acts. As you know, crimes are committed where there is no order. Internal control is designed to ensure the order and integrity of the actions performed by each employee of the company.

Accountability function

Internal control builds the company's employees in a certain hierarchy, which implies mutual monitoring of compliance with official duties. Thus, each employee is responsible for his work not only to himself, but also to his colleagues.

Fields of application

The company’s internal control system can be successfully used in any field of activity. Of course, when the number of employees is small, then control is not so difficult, but even with the number of employees equal to several tens, it is necessary to create a special functional unit that will perform the corresponding functions.

In addition, there are areas of activity for which a high-quality internal control system is essential. These are areas related to deposits, financial transactions, insurance premiums and payments, as well as companies whose activities are associated with significant objects or resources for the state. For example, internal control in the bank is carried out by installing equipment that records video (and sound), a rigid system for regulating operations, constant verification of documentation by several people and many other ways.

Competent internal control can save the company from many troubles, for example, during the time to notice and prevent illegal activities of individuals. This type of control can be carried out in various ways. Among them: the creation of a specialized department at the enterprise, the organization of a working group of specialists from different departments, and the involvement of private audit companies.