What are the Internal Control Objectives in IT?

The Internal control objectives serve to help companies achieve their goals and purposes at specific times in relation to budgets and risks; They also generate trust with third parties, employees and owners of the companies.

The control objectives define the conformity categories of the COSO model (Committee of Sponsoring Organizations of the Treadway) and can be classified into categories such as:

  • Accordance
  • Creation of financial reports
  • Strategy
  • Operations
  • Unknown.

Once the internal control objects are identified, we proceed to defined the risks that belong to each control objective.

In other words, any action, measure, plan or system that the company undertakes and that tends to meet any of these objectives, is a strength of Internal Control.

Internal control includes the organization plan and the set of methods and measures adopted within an entity to safeguard its resources, verify the accuracy and veracity of its financial and administrative information, promote efficiency in operations, encourage observation of policies prescribed and achieve the fulfillment of the programmed goals and objectives.

The objectives of Internal Control are the following:

SUFFICIENCY AND RELIABILITY OF FINANCIAL INFORMATION

Accounting captures operations, processes them and produces financial information necessary for users to make better decisions.

It is useful when its content is reliable and if it's presented to users with the appropriate opportunity. It will be reliable if the organization has a system that allows its stability, objectivity and verifiability.

If there is an appropriate financial information system, greater protection will be offered to the company's resources in order to avoid theft and other hazards that may threaten them.

EFFECTIVENESS AND EFFICIENCY OF OPERATIONS

It must be ensured that the activities are fully carried out with a minimum of effort and use of resources and a maximum of utility in accordance with the general authorizations specified by the administration.

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

Any action undertaken by the management of the organization must be framed within the legal provisions of the country and must comply with all regulations that apply to the entity. This objective includes the policies issued by senior management, which must be sufficiently known by all the members of the organization so that they can adhere to them as their own and thus achieve the success of the mission that is proposed.

All members of the organization, whether public or private, are directly responsible for the internal control system, this is what guarantees Total Efficiency.

Types of internal IT control

According to the moment in which a control is carried out, these are classified as:

  • Preventive.
  • Detection.
  • Corrective.

Preventive.

They are used in the early stages of data flow of a system and try to prevent errors from occurring in the process, such as errors in data capture or unauthorized access to the system. Having good forms doesn't prevent capture errors, but these preventive controls try to avoid it.

Detection.

When preventive controls fail before the event, the detection controls identify the errors after they occur. Being specific controls makes them dependent on the changes.

Corrective.

They make more easy the normalization when incidents have occurred, such as the recovery of a damaged file from backup copies. These controls try to ensure that the errors detected are corrected.

The use of information technology helps companies to achieving the appropriate distribution of costs, improving decision-making capacity, progress in the quality of services by adapting to market dynamics and technology-based customer service, without the use of these would be impossible to offer these.

The information of the companies every day depend more on the computers. It is when the need arises to verify that computer systems work correctly.

Every day the risks of computer security are more dangerous, the applications of the companies can suffer vulnerabilities that's why it's advisable to have internal control objectives based on the COBIT (Control Objectives for Information and Related Technology).

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