WHAT IS INTERNAL CONTROL AND WHY IS IT IMPORTANT?
Internal control is a process in which all University employees participate. It is designed to provide reasonable assurance to unit management that: • Management data used in decision making and reporting is reliable, accurate, and timely; • Assets are accounted for and safeguarded from loss; • Operations are effective and efficient; and • Compliance with applicable laws and regulations is at an acceptable level. Internal control is intended to: • prevent, or lessen the risk of, errors or irregularities; • identify problems; and • ensure that corrective action is taken.
