Functions
Authorization controls refer to procedures designed to limit the ability of individuals to either acquire or dispose of assets solely on their own initiative. Any procedure that requires the collusion of two or more individuals to accomplish an illegal act tends to inhibit illegal activity or at least make the detection of such acts more likely.
Feedback controls, such as transaction recording and verification, cause actions to be more transparent than would be the case in the absence of such procedures. Transparency inhibits illegal activity. As an example, the Code of Practice covering internal controls at ENI Corp. states that:
It is ENI's policy to disseminate, at every level of its organization, a culture characterized by an awareness of the existence of controls and a control oriented mentality. A positive attitude towards control is to be achieved in order to increase its efficiency.
Internal controls are all those necessary or useful tools for addressing, managing and checking activities in the company; they aim at ensuring respect of corporate laws and procedures, protecting corporate assets, efficiently managing operations and providing precise and complete accounting information.
The responsibility for building an efficient internal control system rests on all levels of the organization; therefore all ENI employees, in their respective functions, are responsible for the definition and proper functioning of internal controls.
Within their areas of responsibility, managers shall be requested to become involved in the company's system of internal controls and inform employees thereon. Each employee shall be held responsible for the corporate tangible and intangible assets relevant to his job. No employee can make, or let others make, improper use of assets and equipment belonging to ENI.
Internal Auditors and appointed external auditors shall have full access to all data, documents and informati...