Internal Control

Internal control is the system and process that companies utilize to manage and run their operations. It is a critical component in generating financial reports for internal and external purposes. People are an integral component in the design and operation of the control system that functions to manage and minimize risk, provide for effective and efficient operations, as well as ensure compliance with laws and regulations.

Profitable Sarbanes-Oxley Compliance defines internal control as a people driven-process that consists of processes and sub-processes that contain tasks and activities which provide the foundation for enterprise-wide creation and containment of risk.

It is important to understand that internal control is process based. Processes left unregulated without a framework for control will change for the convenience of the people operating the processes rather than for the focused achievement of enterprise-wide objectives.

My practice and training activities represent a process focused effort with heavy emphasis on process improvement. Maintaining effective internal control process is a continuous improvement effort that utilizes the tools and techniques we teach and support. Dynamics of Profit Focused Accounting provides a reference and roadmap to these tools.

In addition, I have developed a variety of toolkits and work aids which serve to help assess and maintain effective internal control systems.