COMDTINST 5700.10
internal control evaluation, managers must conduct their own testing to obtain the additional
evidence required. There are four types of testing that managers can use in obtaining evidence
for evaluating internal controls:
(1)
Inquiry
(2)
Observation
(3)
Examination
(4)
Reperformance
If, as a result of evaluations, particular controls are found to be ineffective, they must be
corrected. Corrective actions should be documented in a corrective action plan that identifies the
action to be taken and a schedule for completing the action.
g. In designing and implementing internal controls, managers must consider how to meet Federal
internal control requirements and how best to ensure the goals of their functions/activities or
programs are met. Internal controls must be built into the management of the entire organization,
to include all of its policies, procedures, processes, systems, and standards. Internal controls
must be considered at the inception of a program, when planning for change in the organization,
and when developing and implementing policies, procedures, processes, systems, and standards.
7. DEFINITIONS.
a. Internal Control. The organization, policies, procedures, and other mechanisms that help
program and financial managers achieve results and safeguard the integrity of their programs.
Internal controls provide reasonable assurance that the following objectives are being achieved:
(1) Effectiveness and efficiency of operations;
(2) Reliability of financial reporting; and
(3) Compliance with applicable laws and regulations.
b. Executive Audit & Internal Control Committee (EAICC). A CG senior management council that
has overall responsibility for implementation and oversight of the CG IC Program. Enclosure (1)
is the Charter that established the EAICC.
c. Senior Assessment Team (SAT). A group of senior personnel that assists the EAICC in the
detailed evaluation of CG internal control.
d. Key Process. A collection of personnel, equipment, software, policies and procedures designed
to carry out an essential CG financial, management or operational function. Enclosure (2) is a
listing of Key Processes that have been defined for the CG financial reporting process.
e. Key Process Manager (KPM). A KPM is a program manager assigned to a Key Process. KPMs
have ultimate responsibility for the internal controls of the Key Process(es) to which they are
assigned. The KPM is responsible for the completion of the annual internal controls reviews,
maintaining supporting documentation and making it available for review, and ensuring internal
control reporting requirements are met. Enclosure (2) contains a list of KPMs for the CG
financial reporting processes.
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