Internal Control Sample

INTERNAL CONTROL SAMPLE
Internal Control System

The Company’s internal control system is based on the COSO Framework (Committee of Sponsoring
Organizations of the Treadway Commission’s Internal Control–Integrated Framework), which defines
internal control as a process, effected by the Company’s Board of Directors, Management and other
personnel, designed to provide reasonable assurance regarding the achievement of objectives in the
following categories:
 Effectiveness and efficiency of operations

 Reliability of financial and non-financial reporting
 Compliance with applicable laws and regulations.
Management is responsible for establishing and maintaining adequate internal controls. The Audit
Committee assists the Board in fulfilling its oversight responsibilities for the Company’s system of
internal controls.
The Company discloses annually its assessment of the effectiveness of our internal control over financial
reporting at the end of the fiscal year.
Source Link:
http://www.pldt.com/docs/default-source/compliance/corporate-governance-materials/internal-control-
system-v2.pdf?sfvrsn=0
1. Brief company background.

PLDT is the largest and only integrated telecommunication firm in the
Philippines. PLDT provides a broad spectrum of telecommunications and digital
services through the most comprehensive fiber optic backbone and fixed line and
cellular networks in the Philippines across its major business groups, from fixed to
wireless.
PLDT and its American Depositary Securities are listed on the New York
Stock Exchange (NYSE:PHI) and are listed on the Philippine Stock Exchange
(PSE:TEL). PLDT has one of the Philippine-listed companies' highest market
capitalizations.
2. Does the internal control meet the standards?

PLDT’s internal control meet the standards of an internal control system.
PLDT has withstand long years of service to Filipinos. If their internal control is not
efficient, they will not last and become successful like what they are now.
3. If you would change 1 thing to their internal control, what could it be and why?
I don’t think changes would be necessary. But rather enhancement. Their
internal control statement is quite simple and brief. It’s a good thing but people
need more about what is it all about. Having a good internal control system is
pleasant to investors since it will give them the assurance that their investments are
n good hands.
4. Mention 1 distinct feature from your chosen internal control and explain why you
think it is unique.
There’s nothing much in the statement above but if we’ll try to take a closer
look on their website, they have an internal disclosure control and procedures.
There stated, “The Internal Disclosure Controls and Procedures provides the
procedures to ensure that all information required to be disclosed in reports to the
Philippine Securities and Exchange Commission, Philippine Stock Exchange, U.S.
Securities and Exchange Commission and New York Stock Exchange are disclosed
in accordance with the applicable rules. These disclosures include the annual
reports, quarterly reports, disclosures of material information, events and
transactions which could affect the market price and trading of PLDT shares, press
releases and materials for stockholders’ meetings. In accordance with the
abovementioned policy, major company announcements are reviewed and
approved by the Company’s Disclosure Committee, which is composed of certain
members of Senior Management, and by the Board of Directors or the Audit
Committee, as applicable.”
I found the statement appealing because it reassures their users of
information that they will not disclose any information if not required by a legal
situation. PLDT also assures that their internal disclosure control complies with
legal and regulatory policies of the government and other significant judicial
persons.
5. After reading the internal control sample, what realization did you make in
connection with our topic?
I realized that internal control is very important in a company. Internal
control can help an organization achieve its objectives of success and profitability
and avoid resource losses. It will assist in ensuring reliable financial statements. It
will help ensure that the organization complies with laws and regulations,
preventing harm and other risks to its image.
Applying it in life makes me realize that I should be aware and concerned
what is internally lacking in me and focus on filling it with possible solution. What
is lacking doesn’t always mean emptiness but rather a problem that needs to be
addressed. I should address my problems in an optimistic way so that I could
maintain my cheerful and bubbly attitude that put smile in some people’s faces.

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INTERNAL CONTROL SAMPLE

Internal Control System

 Effectiveness and efficiency of operations

1. Brief company background.

2. Does the internal control meet the standards?

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