Type a new keyword(s) and press Enter to search

How to Iimplement Internal Controls as a CEO

 

            As the CEO of an organization your job is to set goals and put internal controls in place; and leave the management of these controls in the hands of your middle and lower management, managers. If I where the CEO of a business I would use the following outline as a guide to help me implement and manage the proper production financial, operational, and other controls needed to make the business successful. .
             Internal controls are essential to the effective operation of many organizations. Simply put, internal controls are activities or procedures designed to provide reasonable assurance that operations are "going according to plan." Without adequate internal controls, management has little assurance that its goals and objectives will be achieved. Properly designed and functioning controls reduce the likelihood that significant errors or fraud will occur and remain undetected. Internal controls also help ensure that departments (other than the main finance office) are performing as expected.
             When the subject of internal control is discussed, the conversation frequently centers on control activities or procedures, rather than the bigger picture of the whole internal control framework. To execute its responsibilities effectively, management needs to understand how an integrated internal control framework should work. .
             This may come as a surprise to some readers, but external auditors are not responsible for an entity's internal controls. External auditors evaluate internal controls as part of their audit planning process, but they are not responsible for the design and effectiveness of your controls. As the title of this guide suggests, management (including the governing board) is responsible for making sure that the right controls are in place, and that they are performing as intended. The governing board's responsibilities for internal controls primarily involve oversight, authorization and ethical leadership.


Essays Related to How to Iimplement Internal Controls as a CEO