“Internal control is broadly defined as a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

• Effectiveness and efficiency of operations.
• Reliability of financial reporting.
• Compliance with applicable laws and regulations"  1

Internal Control consists of five interrelated components:

• Control Environment
• Risk Assessment
• Control Activities
• Information and Communication
• Monitoring

1 Committee of Sponsoring Organizations of the Treadway Commission (COSO), Integrated Control – Integrated Framework, (New Jersey: American Institute of Certified Public Accountants, 1994 edition), pg. 3.