‭Cause‬ I‭n 1997, the report of the Corporate Governance Committee (also known as the Peters‬ ‭Committee) was published. The reason for that report was twofold: on the one hand, the‬ ‭far- reaching internationalization of the economy and internationally changed‬ ‭relationships and, on the other hand, the discussions about the role, position and‬ ‭influence of the capital provider. The report includes 40 recommendations that directors‬ ‭should follow if there is to be good governance. The report also contains‬ ‭recommendations on assessing the design of internal control systems and how to‬ ‭account for them.‬ ‭Objective and target group‬ ‭ ith this report, Royal NIvRA would like to contribute to the creation of a generally‬ W ‭accepted framework for analyzing and assessing the design of internal control‬ ‭systems and the accountability therefor.‬ ‭ he concept of internal control‬ T ‭In NIvRA study reportort 37 „internal control and accountant‟ from 1996, the concept of‬ ‭internal control defined as follows:‬ I‭nternal control is a process aimed at obtaining a reasonable degree of assurance‬ ‭regarding the‬ ‭achievement of objectives in the following categories:‬ -‭ ‬ ‭The effectiveness and efficiency of business processes; The‬ ‭-‬ ‭reliability of the financial information provided. Compliance‬ ‭-‬ ‭with relevant laws and regulations.‬ ‭This definition will also be used in this report.‬ ‭ he definition contains four fundamental elements, which are described as follows:‬ T ‭1. Internal control is a process;‬ ‭ .‬‭Internal control is affected by people;‬ 2 ‭3.‬‭Internal control can be expected to provide only reasonable assurance;‬ ‭4.‬‭Internal control is geared to the achievement of objectives.‬ ‭1.‬‭Internal control as a process‬ ‭This representation of internal control is quite different from other views in which the‬ ‭IC system is seen as an additional burden on business functions. For example,‬ ‭separate IC officers who monitor the handling of certain transactions by means of‬ ‭specially developed control procedures.The study strongly emphasizes that „the‬ ‭internal control system is intertwined with an entity‟s operating activities and exists‬ ‭for fundamental business reasons'.Internal control is only truly effective when it is‬ ‭linked to the organizational infrastructure of the company. ,Internal control should be‬ ‭built in rather than built on'.‬ ‭2.‬‭The human factor‬ ‭There is an interaction between people and the IC system. Internal control is‬ ‭exercised by people, ie company officials, who in turn are influenced by the‬ ‭prevailing IC system. It is of great importance that people in the company know‬ t‭he content and boundaries of their tasks, authorities and therefore their‬ ‭responsibilities.‬