Objectives of internal control

Objective	What it means	Practical example
Effective and efficient operations	Help the company use its resources properly, meet operating targets and safeguard assets.	Warehouse staff release furniture only against an authorised dispatch document. This reduces the risk of theft or delivery to the wrong customer.
Reliable reporting	Produce complete, accurate and timely information for management and financial statement users.	Accounts staff match delivery notes to sales invoices so that all completed deliveries that qualify as sales are recorded in the correct period.
Compliance with laws and regulations	Help the company meet its applicable legal and regulatory obligations.	A payroll officer prepares a schedule of statutory deductions. A supervisor checks the amounts and confirms that payment is made by the applicable deadline.

Controls can serve more than one objective. For example, restricting access to the warehouse safeguards inventory and helps maintain reliable inventory records. They provide reasonable assurance because mistakes, collusion and management override can still occur.