What is an internal controls policy?

Internal control policies and procedures are checks and balances that help protect a company from internal threats, such as theft, embezzlement and mismanagement of funds by employees, suppliers or customers.

• There are five interrelated components of an internal control framework:
• Control Environment
• Risk Assessment
• Control Activities
• Information and Communication
• Monitoring

Companies employ security guards and alarm systems to safeguard property from outside threats. Company employees need access to financial and other sensitive data and systems in order to do their jobs. Internal control policies and procedures are checks and balances that help protect a company from internal threats, such as theft, embezzlement and mismanagement of funds by employees, suppliers or customers.