International Control Procedures

Any organisation or an institution which has been set up to achieve a specific objectives is governed by Internal Control Procedures.Internal and External factors constantly create difficulties to any organisation.Therefore control procedures are necessary for the smooth functioning and survival of the organization.

                         The effectiveness of Internal Controls will depend on the extent to which the staff understand the importance of operating within the laid down control procedures.Internal controls may be a set of written regulations or instructions.

Some important Control Procedures are given below.

 1.Rotation of staff
 2.Segregation of key-duties.
 3.Reconciliation of Central Office Accounts.
 4.Balancing of un-reconciled Accounts.
 5.Confirmation of balances
 6.Listing and balancing of trial balances/outstandings.
 7.Physical check/Stock verification/Inventory checks.
 8.Dual control/Dual authorization/Dual custody.
 9.Daily Audit/Spot Audit/Surprise check.
10.Frequent change of Passwords.
11.Compliance and substantive checks etc.



All these control procedures could be divided into 5 levels.

                    1.Operating Controls.
                    2.Monitoring Controls.
                    3.Oversight Controls.
                    4.Security Controls.
                    5.Internal Audit Controls.

Importance of Internal controls

           1.Promote efficiency and help the Bank to achieve its performance and profitability targets.
           2.Prevent loss of resources.
           3.Ensure reliable financial reporting.
           4.Ensure compliance with rules and regulations
           5.Avoiding damages to its reputation and other consequences
           6.Mitigate Risks  


Although the importance of internal control procedures are not considered seriously by most of the employees,it will be seen that they are very essential for the existence and error-free operations of any organization.Therefore control procedures should be strengthened at every level and also implementation closely monitored to ensure success.