Internal Controls Definition – What are internal controls?

Accounting Glossary 

Internal controls definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Internal controls can be defined as: All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. Internal controls are policies and procedures a business uses to achieve specific tasks. When creating and evaluating internal controls we need to keep in mind the specific task the at the internal controls were designed for. As accountants we often focus on the internal controls designed to insure accurate reporting of the financial statements but internal controls have a broader scope in general.