Standards for Internal Control

10.2.3 - Standards for Internal Control (Rev. 331, Issued: 11-15-19, Effective: 10-01-19, Implementation: 12-17- 19) Internal control consists of five interrelated standards. The GAO "Standards for Internal Control in the Federal Government" describes these five standards: A. Control environment; B. Risk assessment; C. Control activities; D. Information and communication; and E. Monitoring. Each of these internal control standards plays an important role in the overall control environment of an organization. These standards define the minimum level of quality acceptable for internal control in government and provide the basis against which the internal control is to be evaluated. While each internal control standard is an integral part of the management process and plays a specific role, it is the combination of these standards that establishes internal control in an organization. The control environment provides the discipline and atmosphere in which the organization conducts its activities and carries out its control responsibilities. It also serves as the foundation for the other standards. Within this environment, management conducts risk assessments to assess the potential effect of internal and external risks in achieving the organization's objectives. Control activities are implemented to help ensure that management directives are carried out as planned. Relevant information is captured and communicated in a timely and effective manner throughout the organization on an ongoing basis. The organization's operations are continuously monitored as an integral part of the organization's performance evaluation. End Section 10.2.3 – Standards for Internal Control: Back to Table of Contents