kontrollitegevusi

Kontrollitegevusi, often translated as control activities, refers to the policies and procedures that help ensure management directives are carried out. These are the specific actions taken within an organization to manage risks and achieve objectives. They are a crucial component of an effective internal control system, as defined by frameworks like COSO.

Control activities can take many forms and are implemented at various levels and across different functions within an organization. Examples include authorizations and approvals, reconciliations, physical controls over assets, performance reviews, and segregation of duties. The purpose of segregation of duties, for instance, is to ensure that no single individual has control over all aspects of a transaction, thereby reducing the risk of errors or fraud.

The implementation of control activities is not a one-time event but an ongoing process. They are designed to prevent, detect, and correct errors or irregularities. Their effectiveness relies on proper design, consistent application, and regular review to adapt to changing business environments and risks. The specific control activities an organization implements will depend on its unique risks, objectives, and operating environment. A well-designed set of control activities supports reliable financial reporting, operational efficiency, and compliance with laws and regulations.