From the viewpoint of the development process of internal control theory, the internal control objectives in modern organizations are no longer the traditional sense of error checking and correcting, but involves all aspects of organizational management, showing a diversified and deepening trend.
1, to ensure the effective realization of organizational goals. Any organization has its specific goals, to effectively achieve the goals of the organization, it is necessary to constitute those resources (property, manpower, knowledge, information, etc.) in a timely manner for the reasonable organization, integration and utilization, which means that these resources to be under control or in a certain degree of control in the operation. If an organization fails to achieve its objectives, it must have neglected the integrating role of resources and the importance of economy and efficiency in engaging in its own activities. A hospital has excellent doctors, competent staff and advanced equipment, but if these conditions are not adequately utilized for medical treatment, the hospital is not efficient. For example, if a patient cannot be made well because of a poor hospital diet, this hospital is not accomplishing its goals. This is because the goal of the internal control system is to contribute directly to the achievement of organizational goals. Therefore, all organizational activities and control actions must be based on promoting the achievement of the organization's highest goals.
2. Obey policies, procedures, rules, and laws and regulations. In order to coordinate the organization's resources and behavior to achieve the organization's goals, managers will develop policies, plans and procedures by which to supervise the operation and make the necessary adjustments at the right time. On the other hand, organizations must also submit to external controls imposed by society through laws and regulations set by the government, rules of professional ethics, and competitive factors among interest groups. Internal controls that do not adequately take into account these external constraints can threaten the survival of the organization. Therefore, the internal control system must ensure compliance with all relevant laws, regulations and rules.
3. Economic and efficient use of organizational resources. Because all organizations are operating in an environment of limited resources, an organization's ability to achieve its goals depends on the ability to fully utilize existing resources, the development and design of internal control must be based on the ability to ensure that the lowest possible cost to obtain high-quality resources (economy) and to prevent unnecessary redundancy of work and waste (efficiency). For example, an organization can obtain human resources economically, but may work inefficiently due to lack of necessary training and inappropriate production schedules. Managers must establish policies and procedures to improve the economy and efficiency of operations and establish operating standards to monitor actions.
4. Ensure the quality of information. In addition to establishing organizational goals and communicating policies, plans and methods, managers need to use relevant, reliable and timely information to control organizational behavior. In fact, control and information are inextricably linked. Decision-oriented information is subject to internal control, and the quality of information cannot be assured without adequate internal control. In other words, managers need information to monitor and control organizational behavior, and at the same time, decision-making information systems, especially accounting information systems, depend on internal control systems to ensure the provision of relevant, reliable and timely information. Otherwise, managers' decisions may cause irreparable damage to the organization. Therefore, internal control systems must be linked to controls that ensure the correctness of data collection, processing and reporting.
5. Effective protection of the organization's resources. The scarcity of resources objectively requires organizations to ensure their security and integrity through an effective system of internal control. If resources are unreliable, damaged or lost, the organization's ability to achieve its goals will be affected. Protecting the various tangible and intangible resources, firstly, ensures that these resources are not damaged or lost, and secondly, requires ensuring the proper use and necessary maintenance of the assets.
In the modern world, information, as a special kind of resource, its loss, damage and theft can also affect the competitiveness and ability of an organization to function. Therefore, an organization's database must be protected from unauthorized access and use.
Human resources are the fundamental wealth of an organization's competitiveness, and a high-quality workforce is the "amplifier" of an organization's ability to act. An organization's workforce represents a significant investment in training, skills and knowledge that is difficult to replace. Therefore, the work environment, and in particular the internal control environment, should not only contribute to their physical and mental well-being, but also foster their loyalty to the organization.