Functions Of The Control Activities

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Control 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 reassessment, and the establishment of responsibility and accountability. Nevertheless, effective control activities in themselves do not ensure that the organization has implemented an effective system of internal controls; therefore all five COSO components must be existent to make certain that control activities function correctly and consistently overtime (Edelstein, 2004). Information and communication. Information is necessary to convey internal control responsibilities to support the entity in achieving financial reporting objectives while communication is the continual interactive process that provides, shares and obtains the necessary information. Through internal communication, information is distributed across the organization (Rubino & Vitolla, 2014). Gelinas et al. (2015) state that for business process communication takes the form of process narratives, systems flowcharts, and written policies, to mention just but a few. Monitoring. Organizational governance, management
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