Internal Control

An internal control system comprises the control environment and control

Control environment is the overall attitude awareness and action of
Directors and management regarding the internal controls and their importance of the entity. it encompasses the management style and corporate culture and vales   shared by all employees. It provide a background against which various other   controls   are operated .
Management's attitude is of paramount importance in deciding how risks are to be controlled. If the attitude towards control and order is positive and management demonstrates a commitment to keeping it so, staff at all levels will be more likely to behave properly. If that sounds slightly naïve, then consider the alternative view. If management does not demonstrate its interest in the control system then staff will have no particular incentive to implement it fully and effectively and there is a stronger probability that it will falter.

Control procedures are policies and procedures in addition to the control environment which are established to achieve the entity’s specific objectives.
Control procedures

Control procedures do not necessarily cost much to implement. It is often possible to design procedures so that worthwhile controls can be implemented at little or no cost. However, there will typically be some cost to having a control system in place and some of the costs of having a control may be difficult to measure (e.g. stifling the creativity and initiative of staff).
Controls should be designed in a coherent manner that achieves a designated set of objectives. Management should decide what the system is intended to achieve and then ensure that it does so in a cost-effective manner. Control procedures can take a host of different forms. As with the control environment, these have to be designed to achieve a worthwhile set of objectives.
The different types of control are:
Segregation of duties