internal-controls

Vocabulary Word

Definition

'Internal-controls' are measures or checks a company uses to make sure it runs properly. They help prevent mistakes, protect against theft or fraud, and make sure everyone follows company rules.

Examples in Different Contexts

In accounting, 'internal controls' refer to the procedures and mechanisms companies use to safeguard assets and ensure financial reporting accuracy. An accountant might explain, 'Effective internal controls are essential for preventing fraud and errors in financial statements.'

Practice Scenarios

Academics

Scenario:

During our last accreditation review, several compliance issues were brought to light. We need to reaffirm our commitment to meeting all academic standards.

Response:

Absolutely. Enhancing our internal controls can ensure we comply with all educational standards and promote academic integrity.

Business

Scenario:

After reviewing the audit report, we've noticed considerable room for improvement. We need to renew our focus on upholding financial transparency.

Response:

I agree. Strengthening our internal controls will be crucial in enhancing financial transparency and avoiding future audit issues.