Required information Learning Objective 06-C1: Define internal control and identify its purpose and principles. Skip to question An internal control system consists of the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. It can prevent avoidable losses and help managers both plan operations and monitor company and human performance. Principles of good internal control include establishing responsibilities, maintaining adequate records, insuring assets and bonding employees, separating recordkeeping from custody of assets, dividing responsibilities for related transactions, applying technological controls, and performing regular independent reviews. Technology, Fraud, and Internal Control Knowledge Check 01 Technology helps managers to monitor and control business activities and includes each of the following except: multiple choice Reduced processing errors Less extensive testing of records New evidence of processing Separation of duties