Reliability of financial reporting. Compliance with applicable laws and regulations.
Internal control consists of five interrelated components.
These are derived from the way management runs an operation or function, and are integrated with the management process. Although the components apply to the entire University, small and mid-size departments may implement them differently than large ones. Its controls may be less formal and less structured, yet a small department can still have effective internal control. Risk Assessment Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for determining how the risks should be managed. Control Activities Control activities are the policies and procedures that help ensure management directives are carried out.