Reliability of financial reporting. Compliance with applicable laws and regulations. It is a means to an end, not an end in itself.
Internal control is effected by people.
It's not merely policy manuals and forms, but people functioning at every level of the institution. Internal control is geared to the achievement of objectives in several overlapping categories. Internal control can be expected to provide only reasonable assurance to an institution's leaders regarding achievement of operational, financial reporting and compliance objectives. For example, responsibilities for receiving cash or checks, preparing the deposit to the Receivable Accounting Office, and reconciling the deposit to the Receivable Accounting Office receipt and accounting report should be separated. Authorization and Approval - Transactions should be authorized and approved to help ensure the activity is consistent with departmental or institutional goals and objectives.