There are two definitions about internal control .Frist, internal control the integration of the activities, plans, attitudes, policies, and efforts of the employees of a department working together to provide reasonable assurance that the department will achieve its mission. More simply, internal control is what a department does to see that the things they want to happen will happen and the evidences they don’t want to happen would not happen.( Manea Birză,2012,p.75)Second, the Committee of Sponsoring Organizations of the Treadway Commission (COSO)(2005) has claimed that internal control is process, effected by an entity’s board of directors, management and other personnel ,designed to provide reasonable assurance regarding the achievement of objectives in the following thing: effectiveness and efficiency of operations and reliability of financial reporting.
One of important reason of why is it significant that is control environment. The control environment, sometimes referred to as “tone at the top”, is the foundation for all other components of internal control. The control environment is influenced by management’s philosophy, operating style, integrity, ethical