 public company financial reporting regulations to become part of control system goals.  In this view, a financial control system of policies and procedures identifies who approves expenditures, signs checks, and reviews ledgers to accounts, as well as listing the required records and who keeps them.  Is this really all an internal control system does?  The Purpose of an Internal Control System  Financial reporting and compliance are two areas which COSO explicitly claims to address with its integrated framework. However, COSO also lists a third area where internal controls play a vital business role  effectiveness (reaching objectives) and efficiency (required resources) of operations.  If you develop and implement an internal control system and your only financial objectives are to prevent fraud and comply with laws and regulations, then you are missing an important opportunity for improvement.  The same internal controls can also be used to systematically improve your business, particularly in regard to effectiveness and efficiency.  COSO Describes a Control System Framework  COSO lists five components that must be in place to some degree for an internal control system to be effective:  