Internal Control Efficiency. Internal control efficiency is defined as a system
of policies and procedures a firm employs to safeguard the firm’s assets, ensure
accurate and reliable accounting records and information, promote efficiency, and
measure compliance with established policies (Committee of Sponsoring Organizations
of the Treadway Commission: COSO, 1992). Internal control is a process designed to
provide reasonable assurance regarding the achievement of objectives in three
categories; effectiveness and efficiency of operations, reliability of financial reporting,
and compliance with applicable laws and regulations. It is measured by 4 items
(Terryann Glandon, 2000).