Internal Control
Internal control/internal control

In order generally organization health and to be managed validity efficiently without mistake and error etc. being done in inside enterprise and the like, injury and illegality,, specified standard and procedure are decided with each business, management supervision guarantee is done on the basis of that. The consecutive mechanism for that is called the internal control system.

Former internal control talked, with only point of view from financial accounting field was considered as the activity which designates the proper characteristic guaranty of financial report as purpose. But when it becomes the nineties, other than accounting controlling,is widerthan such as observance, management of compliance and management policy business rule and improvement and risk management of effectiveness performance of business the side, where the range which becomes the object, functional role for corporate ????? is strengthened.

Becoming the opportunity, the American tread way commission organizing committee (COSO) the report "Internal Control which 1992 - is published in 94 - Integrated Framework (internal control - integrated framework: Calls the COSO report)"with, among these the framework of new internal control (the COSO framework)was lectured commonly.

In this COSO report, internal control has been defined as follows.
As for internal control, in order to achieve the purpose which is classified below, the fact that rational guarantee is offered was intended, it is one process which is accomplished board of directors, by the manager and the other staffs.
Effectiveness performance of business
Reliability of financial affairs statements
Observance of related law

And as for COSO, the case which lists 5, these it appraises internal control you locate "information and transmission" "supervision activity" as the component of internal control "appraisal" control activity "of" control environment "risk" as standard.

When executing internal control, IT depending, the information system which was constructed becomes big help. You said that until recently the mark withinternal control the business execution person and the check person in charge are separated due to duty division of duties, "the check and balance which leads the person" had become prerequisite, butifthe businessprocesstypetoolof ERP, BPM and work flow etc. is used, approval of the authority person input to the information system (or via the information system) without it is possible, furthermore to try not to be able advance business, it is connected to leaving the record of business accomplishment.

In addition, BI and contents management and the document management tool which support the recordanditsreport andreference of business, it can list various check functions and the like in order to guarantee the preciseness of the input value in the security product and the access control system and the business system of accounts and the like which prevent illegality access and information leakage etc.. Furthermore also the private software which diagnoses internal control and manages has appeared.

In addition, such IT very thing there is a risk such as system down, and illegitimate invasion in order to guarantee "the reliability" related law observance "" of effectiveness performance financial affairs statements of the above-mentioned "business", it is necessary to think as the object of internal control. This is called "IT control", and so on in the American accountant association and the Canadian accountant association publishes the standard.

In the United States window-dressing settlement of ???? and the world COM/destruction it is it is receiving, construction useof the internal control system obligationof the manager, the audit & audit opinion statement is designated as obligation of the external auditor with Bence the sir which is formed in 2002 ????? method.

With the company law which has become enforcement from 2006 May in US obligation of internal control system construction is assigned in director/board of directors. The economic industrial ministry, publishing "guide concerning the framework of the disclosure appraisal regarding ??????????? and risk management internal control" to 2005 August. With guide because enterprise independently tackles the construction of the internal control system, concept of ??? management is included.

Furthermore financial agency directing, the financial products transaction method which becomes drastic amendment of Securities and Exchange Law (the indian edition SOX method) formation to 2006 June. From balancing of accounts of 2009 March period, it could require the check by the submitting certified public accountant of the internal control report at presentation enterprise.