Aspects regarding the implementation of internal control in mining companies

Internal control is broadly defined as a process, affected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives. Internal control means different things to different people. This causes confusion among businesspeople, legislators, regulators and others. Because internal control serves many important purposes, there are increasing calls for better internal control systems and report cards on them. Internal control is looked upon more and more as a solution to a variety of potential problems. Proper risk management and internal control could help mining companies understand the risks they are exposed to, put controls in place to counter threats, and effectively pursue their objectives. They are therefore an important aspect of a mining exploitation’s governance, management, and operations as is shown next.