Term

Internal Control (COSOS framework)

Definition

A process, effected by the entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.

Term

3 categories of objectives of internal control

Definition

reporting, operations, and compliance

Term

reliability

Definition

Generally, the controls that are relevant to an audit are those that pertain to the of financial reporting—that is, those that affect the preparation of financial information for external reporting purposes. However, other controls may be relevant if they affect the reliability of data that the auditors use to perform auditing procedures.