Department managers must develop, implement, monitor and update an effective system of internal controls. The system developed will hinge, in part, on management's estimation and judgment of the benefits and related costs of control procedures. Ensure Proper Resource Management Public sector managers are responsible for effectively and efficiently managing the resources entrusted to them to carry out government programs. Thus, the auditors' reports will include an opinion of the department's internal controls and, when it appears warranted, make recommendations for improvements. Managers are accountable for the adequacy of the internal control systems in their departments, and weak or insufficient internal controls will result in audit findings and, more importantly could lead to theft, shortages, operational inefficiency or a breakdown in the control structure.
Internal control includes both accounting and administrative control.
Access to assets is permitted only in accordance with management's authorization. The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any difference. Such authorization is a management function directly associated with the responsibility for achieving the objectives of the organization and is the starting point for establishing accounting control of transactions. One should not view internal control systems as static. Rather, you should regard them as a continuous series of decisions affected by changing circumstances which will require periodic review and modification.