The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as follows:
“Internal control is broadly defined as a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations
- Reliability of reporting
- Compliance with applicable laws and regulations.”
What Internal Control Can Do?
Internal control can help an entity achieve its performance and profitability targets, and prevent loss of resources. It can help ensure reliable reporting. And it can help ensure that the enterprise complies with laws and regulations, avoiding damage to its reputation and other consequences. In sum, it can help an entity get to where it wants to go and avoid pitfalls and surprises along the way.
What Makes Us Market Leaders
We believe that internal control must differ from one entity to another since people, who are the primary player of any internal control system, and organizational cultures differ. Thus, the DNA of an entity is its internal control systems. It is impossible to have two identical internal control systems in two different entities. Those charged with governance and executive management are jointly responsible for establishing, implementing and maintaining adequate internal control systems. However, as change happens every day in an entity’s operations, management is responsible for keeping up with trends both within their organizations and about global best practices.Based on the internal control principles of the COSO, the relevant literature of the business schools of Harvard, Princeton, and other reputable research centers in the USA, The AACI developed its toolkits to address each aspect of the internal control systems of any entity; forprofit; non-profit and government. Also, The AACI integrated the information theory and information technology in its approach.
We use a principle-based, risk-based, and a process-based approach when we deliver our advisory services by the following categories:
1. Evaluate and assess the design and operation of internal control systems
2. Design Internal control systems
3. Oversee the implementation of internal control systems
4. Maintain (audit) the internal control systems