What are Internal Controls?
An internal control is any action taken by management to enhance the likelihood that established objectives and goals will be achieved. Internal controls are required to:
- Protect Assets
- Ensure Records are Accurate
- Promote Operational Efficiency
- Encourage Adherence to Policies, Laws, and Regulations
Generally, controls are of two types:
Preventative Controls --- Procedures implemented to help prevent an unwanted outcome. Example: Requiring the use of computer passwords to restrict unauthorized access to programs and information.
Detective Controls --- Procedures performed to find errors or irregularities after they have occurred. Example: Supervisors reviewing monthly purchasing card statements to verify that no inappropriate purchases were made.
Who is responsible for internal controls?
Everyone. Although it is ultimately UVU management's responsibility to ensure that controls are in place, everyone plays a part in UVU's internal control system. Every employee has some responsibility for making the internal control system function. Therefore, all UVU employees need to be aware of the concept and purpose of internal controls.
Helpful Internal Control Checklists
We have included internal control checklists on this web site to provide university personnel with key procedures and controls for such things as: purchasing cards, cash receipts, travel, and equipment inventory.