{"ok":true,"canonical_url":"https://dealroom.so/glossary/internal-control","api_url":"https://dealroom.so/api/public/glossary/internal-control","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"internal-control","term":"Internal control","group":"Reading the business","definition":"Internal controls are the processes and procedures a business uses to safeguard assets, ensure accuracy of financial data, and promote operational efficiency. Strong controls reduce fraud risk.","what_it_means":"During due diligence, assess the seller's internal controls. Weak controls can hide financial irregularities or make the business vulnerable to theft and error. As a buyer, you need to understand these systems to identify potential risks and plan for improvements post-acquisition.","url":"https://dealroom.so/glossary/internal-control","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"What if a lender's internal loan review discovers a potential eligibility issue post-closing?","url":"https://dealroom.so/for-lenders/questions/what-if-a-lender-s-internal-loan-review-discovers-a-potential-eligibility-issue-post-closi"},{"question":"Can an SBA loan finance a partner buyout if we've only used an internal valuation?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-loan-finance-a-partner-buyout-if-we-ve-only-used-an-internal-valuation"},{"question":"Can a lender accept contributed equity in the form of existing machinery valued by an internal appraisal?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-contributed-equity-in-the-form-of-existing-machinery-valued-by-an-inte"},{"question":"What are common reasons for significant delays in the SBA's *internal* review and authorization of a loan?","url":"https://dealroom.so/sba-7a/questions/what-are-common-reasons-for-significant-delays-in-the-sba-s-internal-review-and-authorizat"},{"question":"What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?","url":"https://dealroom.so/for-lenders/questions/what-information-on-sba-form-1919-must-be-consistent-with-the-lender-s-internal-credit-mem"},{"question":"How long does the SBA's internal review and approval process take after the lender submits my complete application?","url":"https://dealroom.so/sba-7a/questions/how-long-does-the-sba-s-internal-review-and-approval-process-take-after-the-lender-submits"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Internal control","url":"https://dealroom.so/glossary/internal-control","source_type":"DealRoom Data"}}