A good system of internal control

DEFINITIONS
Internal control systems are the plans, methods, procedures, and policies designed by management to provide adequate assurance for the achievement of efficiency and effectiveness of university operations, reliability of financial reporting, safeguarding of the assets of the university, adherence / compliance with laws, policies and other regulations .
INTERNAL CONTROL COMPONENTS
Environmental ControlManagement and employee / employees should have a commitment and a positive and constructive attitude toward internal control and management earnestness. The key to the control environment are:

    * Integrity and Ethics
    * Commitment to Competence
    * Organizational Structure
    * Delegation of Authority and Responsibility
    * Practice and Human Resources Policy of Good
Risk AssessmentGood internal control enables the assessment of risks faced by organizations both from within and from outside the organization. The steps in risk assessment are as follows:

    * Identify the factors that influence the risk
    * Assess the risk of a significant effect
    * Determine the actions taken to manage risks
Control ActivitiesControl activities are the policies, procedures, techniques, and the mechanism used to ensure management directives are implemented. Control activities should be efficient and effective way to achieve the control objectives themselves. Control activities include:

    * Separation of the functions / duties / authority sufficient
    * Authorization traksaksi and other activities that are appropriate
    * Pendokumentasiaan and recording sufficient
    * Control of physical assets and records
    * Evaluate independently on the performance
    * Control over information processing
    * Restrict access to resources and records
Information and CommunicationInformation should be recorded and communicated to management and other parties interested in the organization and in the form and duration that allows convening of internal control and other responsibilities to such information. In carrying out and controlling the operations, management must communicate the events are relevant, reliable, and timely.
MonitoringMonitoring should assess the quality of performance over time and ensure that audit findings and other Review completed correctly. It includes:

    * Evaluate the findings, Review, audit recommendations appropriately.
    * Determine the appropriate action to respond to the findings and recommendations from audit and Review.
    * Complete within the allotted time is used for follow up action recommendations to the attention of management.