Context
More generally, setting objectives, budgets, plans and other expectations establish criteria for control. Control itself exists to keep performance or a state of affairs within what is expected, allowed or accepted. Control built within a process is internal in nature. It takes place with a combination of interrelated components - such as social environment effecting behavior of employees, information necessary in control, and policies and procedures. Internal control structure is a plan determining how internal control consists of these elements.
The concepts of corporate governance also heavily rely on the necessity of internal controls. Internal controls help ensure that processes operate as designed and that risk responses (risk treatments) in risk management are carried out. In addition, there needs to be in place circumstances ensuring that the aforementioned procedures will be performed as intended: right attitudes, integrity and competence, and monitoring by managers.
Read more about this topic: Internal Control
Famous quotes containing the word context:
“The hard truth is that what may be acceptable in elite culture may not be acceptable in mass culture, that tastes which pose only innocent ethical issues as the property of a minority become corrupting when they become more established. Taste is context, and the context has changed.”
—Susan Sontag (b. 1933)
“Among the most valuable but least appreciated experiences parenthood can provide are the opportunities it offers for exploring, reliving, and resolving one’s own childhood problems in the context of one’s relation to one’s child.”
—Bruno Bettelheim (20th century)
“The hippie is the scion of surplus value. The dropout can only claim sanctity in a society which offers something to be dropped out of—career, ambition, conspicuous consumption. The effects of hippie sanctimony can only be felt in the context of others who plunder his lifestyle for what they find good or profitable, a process known as rip-off by the hippie, who will not see how savagely he has pillaged intricate and demanding civilizations for his own parodic lifestyle.”
—Germaine Greer (b. 1939)