indicate the components of internal control. Various parties responsible for and affected by internal control will also be discussed. THE COSO MODEL In the United States many organizations have adopted the internal control concepts presented in the report of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Published in 1992, the COSO report defines internal control as: a process, effected by an entity's board of directors, management and other personnel, designed to provide
QUESTION (2) (b) – Using examples outline the general framework of internal controls that must be used in organizations (25 marks) There are several frameworks of internal control, ranging from the Sarbanes-Oxley Act, the Turnbull Guidance, and the COSO and COCO frameworks. However, most of these frameworks have common components and the general framework that must be used in most organizations can therefore be summarized in four stages: • Risk assessment. • Control environment and control activities
consistent development and application to design adequacy and operating effectiveness of controls. Internal control frameworks COSO, CoCo, Turnbull COSO- control environment, risk assessment, control activities- Committee of sponsoring organizations improving quality of financial reporting through business ethics, effective internal controls and corporate governance. CoCo- Purpose commitment, monitoring and learning- Turnbull- Control Activities, processing, monitoring, embeddedness , response
frameworks for internal control systems and company-wide risk management are briefly presented below. Internal Control System: COSO, Turnbull Guidance, COCO and KonTraG In 1992, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) set a milestone in the design of internal control systems by publishing the study “Internal Control – Integrated Framework”. COSO is an American committee sponsored by five organizations mainly from the fields of accounting and internal auditing. An objective
the implementation of good IT controls in information systems, be they commercial, non-profit or governmental, is hampered by confusion. The confusion arises from the different evaluation methods such as ITSEC, TCSEC, IS0 9000 evaluations, emerging COSO internal control evaluations, etc. As a result, users need a general foundation to be established as a first step. Frequently, AUDITORS have taken the lead in such international standardisation efforts because they are continuously confronted with
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