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Accounting
Internal Control
The rules and procedures a company uses to protect its assets, keep accurate records, and prevent fraud.
Strong internal control follows the COSO framework and includes segregation of duties, physical controls, and independent checks. It's required by law for public companies under Sarbanes-Oxley.It's like the locks, security cameras, and rules your parents set up so nobody sneaks snacks or money out of the house.
Real world: Requiring two people to sign checks over $5,000 and doing surprise cash counts are both parts of internal control.
💡 Good internal controls are the reason honest companies don't lose money to theft or sloppy mistakes — they're boring but they save fortunes.