The Coso Internal Control Framework - 1271 Words

The COSO Internal Control Framework The framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories: †¢ Effectiveness and efficiency of operations †¢ Reliability of financial reporting †¢ Compliance with applicable laws and regulations COSO goes on to state that the internal controls of an organization can be depicted graphically using a pyramid (Appendix A). The pyramid is comprised of five different layers representing the overall internal control system. Additionally, COSO depicts the components of internal control as they relate to the organizations objectives listed above (Appendix B). The â€Å"control environment† layer represents the foundation of the pyramid. COSO cites the control environment of the organization as the foundation of any internal control structure. The control environment reflects the overall attitude or actions of the board of directors, management, and others concerning the importance of internal controls in the organization. This overall attitude of upper management sends a message to the rest of the organization referred to as the â€Å"tone at the top.†For example, if upper management stresses high-quality products, a strong positive message is sent to the organization. This would create a strong internal control environment. On the other hand, if upper management has a reputation of looking the other way regarding policy violations, a negative message isShow MoreRelatedThe Scopes Of Coso : The National Commission On Fraudulent Financial Reporting1423 Words   |  6 Pagesrecommendations on internal control for public companies, the US Securities and Exchange Commission (SEC), other regulator and educational institutions. COSO was established in the same year and it became the Committee of Sponsoring Organizations of the Treadway Commission. COSO is a private sector that was sponsored by American Accounting Association (AAA), American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), Institute of Internal Auditors (IIA),Read MoreComparative Analysis Of Coso I Vs Basel IIi1411 Words   |  6 Pages This paper includes: †¢ Comparative analysis of COSO I vs BASEL III †¢ Analysis of Enterprise Risk management(ERM) relative to BASEL III Capital Accord ABSTRACT Learning about COSO and BASEL, the two important frameworks in the business world is much needed to understand the internal functions in an industry. COSO framework helps us in understanding how internal consulting is done in a corporation. It explains the procedure with in-depth details and all the errors to be avoided in the pathRead MoreFunctions Of The Control Activities738 Words   |  3 PagesControl activities. COSO requires the organization to consider general control activities over technology, wherefore activities related to the understanding of technology dependencies are viewed relevant, the IT infrastructure are configured to support restricted access and segregation of duties, and define clear access rights for financial applications and processes. The important elements for the control activities are the development and documentation of policies and procedures, their reassessmentRead MoreBusiness Analysis : Coso Enterprise Risk Management Framework1279 Words   |   6 PagesPeng ACCT 501 Prof. Dennis A. Conrad January 23, 2016 COSO Enterprise Risk Management Framework Introduction Enterprises are exposed to various risks that decrease the chances of achieving their business goals both internally and externally. Internally, there are company politics and mismanagement. Externally, factors such as economic environment, regulations and technology influence risks. It is important for an enterprise to build framework for good risk management, which is â€Å"the process of identificationRead MoreKey Developments Within Coso 2013-151508 Words   |  7 PagesIMPLEMENTATION Key Developments within COSO 2013-15 †¢ COSO released an updated internal control- integrated framework in 2013 which will supersede the 1992 framework by Dec 14 2014 †¢ The SEC has stated the staff intends to monitor the transition for issuers using the 1992 Framework to evaluate rather any staff of commission action will be needed in the future. As the Framework was updated on Dec 14 2014 the staff that still abide by the 1992 Framework are likely to be questioned by the SEC regardingRead MoreIT Corporate Governance Essays1599 Words   |  7 Pagesthe responsibility of an organization’s board of directors (BOD). The internal auditor (IA), the external auditor (EA), and the information technology (IT) auditor all play important roles in the process of corporate governance. By using established frameworks established by the Sarbanes-Oxley Act (SOX), the Integrated Framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and the Control Objectives for Information and related Technology (COBIT), organizationsRead MoreControls for Information Technology and Reporting Evaluation Essay1634 Words   |  7 PagesControls for Information Technology and Reporting Evaluation Week 6 Controls for Information Technology Risk is a necessary undertaking for any business. Success in business is determined by effectively managing the risk. Effective risk management helps to protect the company from losses because of poor accounting practices and fraud. Good controls also protect company management from the liability when they certify the financial statements issued in the annual report because they are alsoRead MoreQuestions On Implementing An Effective Erm Program1492 Words   |  6 Pages Assignment 1: ERM Roadmap Wayne Thomas Dr. Patricia White IT Audit and Control October 15, 2016 Abstract This paper represents the IT Audit and Control course and will address the following four issues. ïÆ'Ëœ We will elaborate the COSO Risk Management Framework and COSO’s ERM process. ïÆ'Ëœ We will propose to management the method that they need to take to implement an effective ERM program. This will comprise the concerns and the organizational impact they might meet if they do not implement anRead MoreAcct 309717 Words   |  3 PagesACCT 309 COSO Integrated Framework: Internal Environment Part 2 Assignment 1. Download or open the COSO ERM Integrated Framework from Course Handouts in Blackboard. 2. Review chapter 2 â€Å"Internal Environment† pages 27-34. 3. Read the following information about Go-Go Corporation. 4. Determine how each of the issues relates to the eight factors of the internal environment. * Factors of internal environment include risk management philosophy, risk appetite, board of directorsRead MoreControls for Information Technology, Reporting and Evaluation718 Words   |  3 Pageshead: IT Controls Controls for Information Technology, Reporting and Evaluation Controls for Information Technology, Reporting and Evaluation Information technology (IT) controls are particular functions performed by employees and operating systems specifically designed to ensure business objectives and goals are met. Although IT controls are different than internal controls both are vital functions of an organization that are both reported and evaluated on a regular basis. IT control objectives