Internal controls refer to a set of policies, procedures and practices that are put in place by an organization to ensure efficient and effective operations. These controls help to minimize risks such as fraud or errors, maintain accountability, improve efficiency, and enhance transparency within the organization. Internal control systems can include measures like segregation of duties, documentation procedures, access controls, and regular audits among others. By implementing strong internal controls, organizations can help to ensure that their operations are running smoothly, and that they are in compliance with legal and regulatory requirements.