【正文】 Electronic copy available at: A clear look at Internal Controls: [Theory and Concepts] Hamed Arad (Philee)Department of accounting, Islamic Azad University, Hamedan, IranBabak JamshedyNavidFaculty Member of Islamic Azad University, Kermanshah, IranResearch Paper, July 2020, Social Science Research NetworkMarch 2020SSRN Digital Library, History of AccountingElectronic copy available at: SSRN, 2020 TOP 10 PAPER, Electronic copy available at: SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 1 Social Science Research Network (SSRN)UNITED STATES OF AMERICA Hamed Arad (Philee)* (Corresponding Author)Department of accounting, Islamic Azad University, Hamedan, Iran Babak JamshedyNavidFaculty Member of Islamic Azad University, Kerman shah, IranJEL Classifications: M41 Submitted February, 2020 Date posted: February 13, 2020。 last revised: April, 2020This paper can be downloaded from theSocial Science Research Network Electronic Paper Collection:Abstract: internal control is an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error. Internal Control is a major part of managing an organization. It prises the plans, methods, and procedures used to meet missions, goals, and objectives and, in doing so, support performancebased management. Internal Control which is equal with management control helps managers achieve desired results through effective stewardship of resources. Internal controls should reduce the risks associated with undetected errors or irregularities, but designing and establishing effective internal controls is not a simple task and cannot be acplished through a short set of quick fixes. In this paper the concepts of internal controls and different aspects of internal controls are discussed. Paper type: General ReviewKeywords: Internal Control, management controls, Control Environment, Control Activities, MonitoringSSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 21. Introduction The necessity of control in new variable business environment is not latent for any person and management as a response factor for stockholders and another should implement a great control over his/her organization. Control is the activity of managing or exerting control over something. The emergence and development of systematic thoughts in recent decade required a new attention to business resource and control over this wealth. One of the hot topic a bout controls over business resource is analyzing the costbenefit of each control. Internal Controls serve as the first line of defense in safeguarding assets and preventing and detecting errors and fraud. We can say Internal control is a whole system of controls financial and otherwise, established by the management for the smooth running of business。 it includes internal cheek, internal audit and other forms of controls. COSO describe Internal Control as follow. Internal controls are the methods employed to help ensure the achievement of an objective. In accounting and organizational theory, Internal control is defined as a process effected by an organization39。s structure, work and authority flows, people and management information systems, designed to help the organization acplish specific goals or objectives. It is a means by which an organization39。s resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization39。s resources, both physical (., machinery and property) and intangible (., reputation or intellectual property such as trademarks). At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and pliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (., how to ensure the organization39。s payments to third parties are for valid services rendered.) Internal control procedures reduce process variation, leading to more predictable outes. Internal controls within business entities are called also business controls. They are tools used by manager39。s everyday. ? Writing procedures to encourage pliance, locking your office to discourage theft, and reviewing your monthly statement of account to verify transactions are mon internal controls employed to achieve specific objectives. All managers use internal controls to help assure that their units operate according to plan, and the methods they usepolicies, SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 3procedures, organizational design, and physical barriersconstitute. Internal control is a bination of the following:1. Financial controls, and2. Other controls According to the institute of chartered accountants of India internal control is the plan of organization and all the methods and procedures adopted by the management of an entity to assist in achieving management objective of ensuring as far as possible the orderly and efficient conduct of its business including adherence to management policies, the safe guarding of assets prevention and detection of frauds and error the accuracy and pleteness of the accounting records and timely preparation of reliable financial information, the system of internal control extends beyond those matters which relate to the function of accounting system.