Internal Control
Accounting glossary · Understand, connect, apply
Internal control is a process carried out by an organization’s people to provide reasonable assurance about operational, reporting and compliance objectives.
Example
Separating invoice approval from payment release helps reduce the risk of unauthorized supplier payments.
Remember the difference
Controls reduce risk rather than eliminate it. Collusion, management override, human error and changing circumstances can limit effectiveness.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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