control

(noun)

A security mechanism, policy, or procedure that can counter system attack, reduce risks, and resolve vulnerabilities, synonymous with safeguard and counter-measure.

Related Terms

Examples of control in the following topics:

  • Cash Controls

    • If designed well, internal controls can prevent theft and fraud.
    • While internal control should be designed for every aspect of a business's operation, the controls for cash are arguably among the most important.
    • The Control Environment.
    • Control activities.
    • Control activities are steps that a business takes to minimize risks.

  • Using a Bank for Control

    • A bank is a good cash control because it limits employees' access to company assets and provides documentation on withdrawals and deposits.
    • Using a bank is one of the best internal controls on a business's cash.
    • Internal controls are meant to ensure that a business's assets are protected, that its financial data is accurate, and to ensure efficiency .
    • Keeping money in a financial institution, such as Deutsche Bank, can provide a critical control over a business's cash.
    • Describe why a bank is one of the best internal controls a business can use

  • Managing to Prevent Fraud

    • To help prevent fraudulent activities, management must implement internal controls/structure and know what situations to look for.
    • To help prevent fraudulent activities, management must implement internal controls/structure, and know what situations to look for.
    • One of the main factors of an effective internal control system is segregation of duties.
    • A strong control environment (top management control) involves enlisting management to demonstrate ethical behavior.
    • Explain how a company can prevent fraud by establishing internal controls

  • Reporting for a Combined Entity

    • The controlling entity is called its parent company, parent, or holding company.
    • Control in this context is defined as ability to direct policies and management.
    • In this type of relationship the controlling company is the parent and the controlled company is the subsidiary.
    • Second, the portion of net income attributed to the non-controlling ownership interest must be deducted, or USD 1,600 (8,000 * .20).
    • Therefore, consolidated income for ABC and its controlling interest in XYZ is USD 20,000 (21,600 - 1,600).

  • Internal Controls

    • Inventory internal controls ensure that a company has sufficient resources to meet its customers' needs without having too much goods.
    • Internal controls over a company's inventory are meant to ensure that management has an accurate count of what materials and goods it has available for sale and to protect those goods from being spoiled, stolen or otherwise made unavailable for sale.
    • In short, inventory internal controls are meant to ensure that a company always has sufficient resources to produce and sell goods to meet its customers' needs without having oversupply.
    • Since a company's inventory is directly tied to the business's ability to generate profit, the internal controls must be comprehensive and require significant thought when being designed.
    • Explain how a company would use storage, inventory management systems and inventory counts to control inventory

  • Defining Long-Lived Assets

    • It is anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.
    • The transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred .
    • This is because an entity does not have sufficient control over its employees to satisfy the definition of an asset.
    • All assets are resources controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise.

  • Reconciling Cash Accounts and Bank Statements

    • A bank reconciliation is an internal control that ensures that the cash in its accounts equals what it has recorded in its books.
    • Describe how a company uses a bank reconciliation as an internal control

  • Impact of Measurement Error

    • In inventory controlling, measurement error is the difference between the actual number of stocks and the value obtained by measurement.
    • Inventory controlling helps revenue and expenses be recognized.

  • Conducting a Physical Inventory

    • In addition, inventory control system software can speed the physical inventory process .
    • An inventory control system ensures that the company's books reflect the actual inventory on hand.

  • Basics of Cash Management

    • Bank reconciliations, or the process of checking to make sure that a business's financial records on cash equals how much is in the business's bank accounts, are especially useful as a control over deposits.
    • This type of control will be discussed in a later section.