Internal Control
/ɪnˈtɜːrnəl kənˈtroʊl/
Definitions
- (n.) A process implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.
The company enhanced its internal control systems to better comply with regulatory standards.
- (n.) Policies and procedures designed to safeguard assets, ensure operational efficiency, and achieve compliance with laws and regulations.
Effective internal control minimizes the risk of errors and irregularities in corporate governance.
Related terms
See also
Commentary
Internal control is a broad legal and regulatory concept often referenced in corporate law, financial regulation, and compliance contexts; precise drafting should distinguish controls related to financial reporting from those addressing operational risks.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.