Business strategic goals are very important because they provide for efficient allocation resources, focused operations of efforts and basis for comparing planned and actual results.
Strategic goals are those business specific objectives, both financial and non-financial, a company aims to achieve and so incorporated with its key success factors to drive operations over a specific period of time. The key control functions/activities or the application of internal controls in an organization are the practices and procedures meant to streamline and coordinate strategic plans to ensure that the entity’s objectives are achieved.
Although internal controls give the management reasonable assurance as to the achievement of the entity’s set objectives, the influence or attitude (Control Environment) to internal control of the Board or Senior management and other employees should be seen as positive factors.
Control Environment has been defined as ‘’the attitude and actions of the board [of directors] and management regarding the significance of control within the organization… which provides the discipline and structure for the achievement of the primary objectives of the system of internal control.’’
A revised report (2005) by the Committee of Sponsoring Organization (COSO) stated that the control environment is driven principally not by even the best policies and procedures for conducting the business of the entity, but by the attitude and behavior of those who carry out business activities on behalf of the entity. The Board of Directors are responsible to maintain integrity, ethical values and competence in the discharge of their assigned role of ensuring that entity’s objectives are achieved over time.
Organization wide participation and application of the key success factors should also be reflected in management’s philosophy and operating style, organizational structure, assignment of authority and responsibility, human resource policies and practice and the competence of personnel, with high level of commitment, ethically and culturally acceptable in an entity’s control process.
As Peter Drucker once said, “It all comes down to work!”
In reality, they are key to every business success; not just because of the best policies and procedures but also having the right attitude to business and consistently working towards its sustainability for effective business result.
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