Internal Audit provides consulting and evaluation services to MSU regarding internal control, which includes risk assessment. Below are some frequently asked questions about internal control and links to other resources to help you. If you want more information, please contact us.

What is internal control?

Internal control in general is any action taken to increase the likelihood that established objectives and goals will be achieved. Objectives include effective and efficient operations, reliable reporting, compliance with internal and external requirements, and protecting assets. Because internal control may mean different things to different people, a number of frameworks that promote consistency were created. Components of one common framework are the control environment, risk assessment, control activities (such as policies and procedures), monitoring, and information and communication.

What is the state internal control initiative?

The Governor of the State of Montana recently initiated a process to ensure state agencies, including MSU, have satisfactory internal controls. MSU is responsible for ensuring it has proper controls in place. Some state agencies are responsible to oversee or monitor MSU. They may review MSU controls, including documentation of controls. These reviews might be part of routine audits of MSU or separate reviews. For example, in late 2007, the Legislative Audit Division requested and MSU provided a high-level summary of MSU internal controls over financial reporting.

MSU is considering enhancing its existing internal controls by adapting resources provided by the state. The State Department of Administration drafted a State Internal Control Manual that all state agencies may use. The Manual includes a guidebook and self-assessment checklists. It is based on the internal control framework issued by COSO (Committee of Sponsoring Organizations of the Treadway Commission).

What is my role in internal control and how do I find out more about that role?

Every MSU employee has a role in internal control. That role may range from designing, implementing, operating, monitoring, or sharing information on internal control, depending on your role at MSU. Management has primary responsibility for controls. Controls may be centralized or decentralized. Examples of centralized controls are policies that cover the whole campus. Examples of decentralized controls are departmental policies and procedures. Internal Audit can provide more information and/or direct you to someone in your area who is closely involved in internal control.

How can I learn more about internal control and how to assess it?

Internal Audit has provided resources for information about internal control and how to assess it. Many other resources are available besides those accessible through the following links:

Internal Control Concepts

Internal Control Assessment

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