Question

What is the difference between a control and a process in Internal control? Why is this an important distinction?

Answer 1

In internal control, the control refers to the procedures and methods implemented by the management for controlling the operations, so as to assist in achieving the business goal. It's objective is to ensuring the compliance with the policies of the management. On contrary, the process in internal control refers to the program adopted by the management for reviewing its financial and operating activities by the professional. It's objective is to detect fraud and error.

By and large, both a control and a process in internal control are important for every organization, to assess the overall working. These help business firms to keep an eye on it's regular activities. These are commonly used interchangeably, but hold different meanings thus it's distinction is important. The scope of internal control is wider compared to internal process, as the former includes the latter.