【正文】 The auditor should concentrate on the substance of controls rather than their form, because controls may be established but not acted upon. For example, management may establish a formal code of conduct but act in a manner that condones violations of that code. When obtaining an understanding of the control environment, the auditor considers the collective effect on the control environment of strengths and weaknesses in various control environment factors. Management39。 Information and munication s review of long distance telephone charges will detect improper or personal calls that should not have been charged to the account.SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 7Through careful design, the system of internal controls can help our unit operate more efficiently and effectively and provide a reasonable level of assurance that the processes and products for which you are responsible are adequately protected.? Maintaining written procedures for manual processing will ensure that operations can continue in the event of puter failure.4. The factors of internal controls Internal control consists of five interrelated ponents as follows: review and approval authorizations。 b) Reliability of financial reporting。s objectives. Effective internal control helps an organization achieve its objectives。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。 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。 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。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 responsibility.SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 52. Effective internal control helps an organization achieve its operations, financial reporting, and pliance objectives. Effective internal control is a builtin part of the management process (., plan, organize, direct, and control). Internal control keeps an organization on course toward its objectives and the achievement of its mission, and minimizes surprises along the way. Internal control promotes effectiveness and efficiency of operations, reduces the risk of asset loss, and helps to ensure pliance with laws and regulations. Internal control also ensures the reliability of financial reporting (., all transactions are recorded and that all recorded transactions are real, properly valued, recorded on a timely basis, properly classified, and correctly summarized and posted).3. Internal control can provide only reasonable assurance not absolute assurance regarding the achievement of an organization39。s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achiev