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 corporate governance, 'internal controls' are measures to ensure compliance with laws and regulations. A compliance officer might say, 'Our internal controls include regular audits and employee training to uphold legal and ethical standards.'

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.

Operations

Scenario:

Recent quality checks have revealed a higher defect rate in our products. We must strive to deliver defect-free products to our customers.

Response:

Right, robust internal controls can help lower the defect rate and ensure our products meet the necessary quality standards.