The principle of ‘Knowing where to hit the hammer’ holds when it comes to internal controls When there is a guidebook that serves as a bible for a specific task, then there is uniformity in operations. 

Association of Certified Fraud Examiners (ACFE), in its 2022 version of its report to the nations, indicates that nearly half of the cases of fraud occur due to a lack of internal controls in an organization.

The control system of an organization speaks about its attitude towards its risk environment. A good internal control system is proactive in the deterrence of losses due to risk, be it financial, legal, social, or environmental.