Internal Control Roles and Responsibilities

Question 1

4 key roles and responsibilities for IC

Answer 1

1. BOD - oversight of key IC activities & enterprise-wide risk management. Create expectations about integrity & ethical values, transparency
2. Management - maintaining effective ICs related to daily operations. Set the organizational ethical “tone at the top”. “First line of defense” in IC.
3. Support functions - “second line of defense”, e.g., legal, compliance, finance, HR, IT (not internal audit). Clarify IC requirements & evaluate control-related compliance with set standards.
4. Internal auditors - asses and report on IC and provide recommendations to correct or improve activities. “Third line of defense”.