Definition: Management control
Or Internal control is the organisation, policies and procedures used to help ensure that government programmes achieve their intended results; that the resources used to deliver these programmes are consistent with the stated aims and objectives of the organisations concerned; that programmes are protected from waste, fraud and mismanagement; and that reliable and timely information is obtained, maintained, reported and used for decision making.
It is the responsibility of an organisation’s management to establish and monitor management control systems, not that of the external auditor. However, an external auditor should comment on the absence or adequacy of such systems since a consequence of good management controls is that less detailed auditing of individual documents and transactions will be necessary.
Organization for Economic Cooperation and Development (OECD), "Effects of European Union Accession, Part 1: Budgeting and Financial Control", OECD SIGMA Paper No. 19, Paris, March 1998