Internal Controls Tool

The Internal Controls Tool is designed to help you develop and maintain the most effective internal controls for your organization. Internal control is a process implemented by management that is designed to provide reasonable assurance regarding the achievement of objectives. According to the U.S. Government Accountability Office (GAO), an effective internal control system helps an entity adapt to shifting environments, evolving demands, changing risks and new priorities.

In its Standards for Internal Control in the Federal Government (Green Book), GAO sets internal control standards for federal entities. This tool, however, is targeted at state and local government managers. It incorporates key aspects of the Green Book to help state and local government managers determine whether they have adequate controls in place to achieve objectives relating to operations, reporting and compliance.

The way you use this tool depends upon what you want to know. You can:

Explore Internal Controls by Business Process

Learn about internal controls that can be used to mitigate risks associated with business processes including accounts payable, accounts receivable, procurement/purchasing and contract management.

Navigate by Components of Internal Controls

There are five components of internal control that are key to helping an organization achieve its mission, strategies and objectives. Each component is based on a number of principles, which in turn, have a number of important characteristics, called attributes, which explain the principles in greater detail. The components are:

• Control environment
• Risk assessment
• Control activities
• Information & communication
• Monitoring

This tool was developed by AGA's Internal Controls Workgroup.