Internal Control Basics
Policies and procedures used to ensure operations are effective, reporting is accurate, and laws are followed.
What are internal controls?
Who is primarily responsible for establishing internal controls?
Management.
What does COSO stand for?
Committee of Sponsoring Organizations of the Treadway Commission.
This process helps organizations identify potential threats before they occur.
What is risk assessment?
This federal agency uses internal controls to manage scientific missions and public funds.
What is NASA?
Internal controls help prevent what two major financial issues?
Fraud and errors.
Employees help maintain internal controls by doing what?
Following procedures and reporting problems.
How many components are in the COSO model?
Five.
Risk assessment helps organizations prioritize this type of threats.
What are major or high risks?
Internal controls help protect this type of government resource.
What are taxpayer funds?
Internal controls help organizations achieve what three main objectives?
Operations, reporting, and compliance.
Which federal office provides guidance for internal controls in government agencies?
Office of Management and Budget.
Office of Management and Budget.
Which COSO component refers to leadership ethics and organizational culture?
Control environment.
This financial issue can be prevented through strong internal controls and risk assessment.
What is fraud?
This organization developed federal internal control standards used by government agencies.
What is the Government Accountability Office?
Government agencies use internal controls to protect what public resource?
Taxpayer money.
Internal controls require participation from which group?
Everyone in the organization.
Which COSO component involves identifying potential threats?
Risk assessment.
Risk assessment helps determine where these should be implemented.
What are internal controls?
At NASA, these individuals design and maintain internal control systems.
Who are managers?
Internal controls help organizations maintain what important public relationship?
Trust and accountability.
Managers must regularly do what to internal control systems?
Monitor and improve them.
Which COSO component ensures controls continue to work over time?
Monitoring.
Monitoring.
Risk assessments should be conducted on this type of schedule to remain effective.
What is regularly or continuously?
Internal controls help government agencies maintain this important principle when using public money.
What is accountability?