0303 Internal Controls

Part of the Business Processes Section of the CEA Curriculum


Internal controls are the policies, procedures, physical safeguards,  and checks and balances designed to protect and conserve company assets from waste, spoilage, theft and damage.  They consist of a comprehensive system permeating the organization.

In most companies, internal controls are processes affected by an organization’s structure, work and authority flows, people and management information systems. They are designed to help an organization accomplish specific goals or objectives. It is a means by which an organization’s resources are directed, monitored, and measured.

Internal Controls play an important role in detecting and preventing fraud while protecting an organization’s resources, both monetary ( cash, receivables, investments ) physical (e.g., inventory, machinery and property) and intangible (e.g., reputation or intellectual property such as trademarks).

Many small businesses have poor or sub-par  internal control systems. As a result they are prone to loss from a variety of factors.  The business advisor can dramatically improve performance by helping implement good internal controls.

Learning Objectives
After completing this course, you will be able to:

  • List the three components of internal controls
  • Define the 8 basic control procedures of internal controls
  • Appreciate the legal issues involved in employee crime
  • Understand the FTC safe guards rule

Course Curriculum

Part 1
Understanding Internal Controls FREE 00:02:00
Common Frauds 00:02:00
Why Fraud Happens & What To Do About It 00:02:00
What Can and Does Go Wrong 00:10:00
Part 2
Implementing Internal Controls 00:04:00
Internal Controls of Payroll Systems 00:01:00
Internal Controls Of Physical Assets 00:02:00
Internal Controls Over Physical Safeguards 00:01:00
Internal Control Red Flags 00:04:00
Internal Controls & Employees 00:04:00
Internal Controls & Records 00:03:00
Compliance with FTC Regulations 00:04:00
Internal Controls & Common Sense Procedures 00:04:00
How to Encrypt a file in MS Office 00:01:00
Wrap Up of Internal Controls 00:03:00

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  • Price Options +
  • 1 year
  • Program Level: Fundamentals/Beginner

    75 minutes | CPE = 1.5 units

    Field of Study: Auditing

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