【正文】 lts 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 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, 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 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. In other words internal control system of controls lay down by the management for the smooth running of the business for the acplishment of its objects. These controls can be divided in two parts . financial control and other controls.Financial controls: Controls for recording accounting transactions properly. Controls for proper safe guarding pany assets like cash stock bank debtor etc Early detection and prevention of errors and frauds. Properly and timely preparation of financial records I e balance sheet and profit and loss account. To maximize profit and minimize cost.Other controls: Other controls include the following:Quality controls.Control over raw materials.Control over finished products.Marketing control, etc2. Definition of internal controls There are many definitions of internal control, as it affects the various constituencies (stakeholders) of an organization in various ways and at different levels of aggregation.One of the definitions of internal controls is as follow: SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 4Internal Control is a process affected by an entity39。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 abs