It is the backbone of the internal control system and is used to plan tests of controls. Stating clearly whether a control is automated or manual, preventive or detective, determines the testing approach.
Source: COSO, SOX uygulaması
Related terms
Internal controlProcesses and controls designed by management to provide reasonable assurance regarding the effectiveness of operations, the reliability of financial reporting and compliance with laws and regulations.Tests of controlsProcedures performed to evaluate whether an entity's internal controls operate effectively in preventing, or detecting and correcting, material misstatements.Sarbanes-Oxley Act (SOX)A US law enacted in 2002 requiring management of listed companies to assess internal control over financial reporting and the auditor to report on it.Anti-bribery and corruptionThe set of policies, controls and training designed to prevent the offering or acceptance of undue advantages to or from public officials or private sector employees.Application controlsAutomated or IT-dependent manual controls embedded in a software application that ensure transactions are processed completely, accurately and with authorisation.Business continuity planA plan to keep critical activities running at an acceptable level and return to normal within set timeframes after a disruption, disaster or cyber attack.
Last updated: November 8, 2026 · This definition is for general information only.