The importance of internal controls

Internal controls play an integral role in a company’s success, but many young accounting and finance professionals enter their careers without a clear understanding of their importance.

Risk management identifies threats to the organization, while internal controls are designed to provide reasonable assurance regarding the achievement of operational objectives, such as the effectiveness and efficiency of operations, accurate and reliable financial reports, and compliance with applicable laws and regulations.

Part of the gap in employees’ understanding of the importance of internal controls exists because current university curriculum barely touches the surface of this topic in auditing classes. The curriculum does not give students an in-depth knowledge of the controls that need to be in place and the importance of maintaining internal controls.

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