Internal Controls

AAA

DEFINITION of 'Internal Controls'

Methods put in place by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets and transmit management policies throughout the organization.

INVESTOPEDIA EXPLAINS 'Internal Controls'

Internal controls work best when they are applied to multiple divisions and deal with the interactions between the various business departments. No two systems of internal controls are identical, but many core philosophies regarding financial integrity and accounting practices have become standard management practices.

RELATED TERMS
  1. Voodoo Accounting

    Creative rather than conservative accounting practices. Voodoo ...
  2. Walk-Through Test

    A procedure used during an audit of an entity's accounting system ...
  3. Bureaucracy

    An administrative or social system that relies on a set of rules ...
  4. Silo Mentality

    An attitude found in some organizations that occurs when several ...
  5. Market-Based Corporate Governance ...

    A system relying on the investors of a firm to exert control ...
  6. Cross-Listing

    The listing of a company's common shares on a different exchange ...
Related Articles
  1. Governance Pays
    Options & Futures

    Governance Pays

  2. Who is responsible for protecting and ...
    Investing

    Who is responsible for protecting and ...

  3. What are some examples of how cash flows ...
    Personal Finance

    What are some examples of how cash flows ...

  4. What is the difference between cash ...
    Fundamental Analysis

    What is the difference between cash ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center