Internal Control System (ICS) is the set of policies, procedures, processes, and control activities established and maintained by management (and overseen by those charged with governance) to provide reasonable assurance that the organisation will:
- Operate effectively and efficiently (achieve operational objectives),
- Produce reliable financial reporting, and
- Comply with applicable laws and regulations, while also safeguarding assets and reducing fraud and error risk.
ICS provides reasonable, not absolute, assurance due to inherent limitations (human error, collusion, management override, cost–benefit constraints).
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