Internal control in this company can refer to both administrative and accounting control.1. Administrative control includes the organization plan and all methods and procedures that facilitate management planning and control. Examples are department budget procedures and performance reports.2. Accounting control includes the methods and procedures that primarily concern the authorization of transactions, the safeguarding of assets and the accuracy of financial records. Good accounting controls help maximize efficiency; they help minimize waste, inadvertent errors and fraud. There are five key elements of internal control: environmental control, risk assessment, control procedures, monitoring, information and communication. Each area contributes an essential part of the control system in the accounting information system as a whole, and without all the key elements in place, the controls and controls system does not work. Environmental Control Environmental control refers to the attitude and behavior of management and employees. Management's goals and objectives will influence employee behavior and attitudes throughout the company. For example, management's aim and objective is to achieve certain sales levels at all costs, this will discourage employees from adhering to internal controls in place and will encourage achieving what management wants, regardless of the consequences. Therefore, to ensure that employees adhere to internal control, management's goals and objectives must be communicated well and clearly to them. Consequently, the human resources department will provide much of the input for effective environmental control. Risk Assessment Risk assessment incorporates the company's ability to analyze business risks, estimate their importance, and react or act accordingly. Risk assessment is generally a managerial function, but can be included in the daily analysis of employees if the work environment includes risks and hazards. Control Procedures The next element, control procedures, simply provide the established methods for performing the environmental controls, risk assessment, monitoring, and reporting of information that must occur in the internal control process. In order to reduce the risk of fraud, inadequately trained personnel and eliminate process errors, control procedures benefit the company, the management and the employee of a company. Control procedures greatly influence the information and communication aspect of the company, as much of the communication of the company's status depends on the information provided by each department. The checks and balances provided by control procedures assure the company that each department will provide timely and honest, as well as accurate and useful information.