Functions Of The Control Activities

The control structure is the means used to ensure that organization members are doing what they are supposed to do; it describes the nature of and methods for communication in an organization. Due to lack of a structural job design and absence of coordination within departments and lack of autonomy employees are irresponsible and do not perform the task to

Effective communication is vital to the smooth running of a business and various methods of communication are used within a business environment to achieve this. Each form has various benefits to communicate effectively to their designated target audience. When communication is carried out properly it means the sender and receiver both correctly obtain the same information. Each

The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.

Most businesses use more than one way to communicate internally and externally. This is vital to running a business effectively. Without communication, information would not get passed on, information that is potentially needed to carry out tasks within the business.

Informational Communication. Some documents are eyeing a goal, but some are simply to inform the audience. For example, an email can be about a change in a policy, a help manual for a particular program or facility, or changes in the organisational structure.

COBIT stands for Control Objectives for Information and Related Technologies (Damianides, 2004). It is a set best control framework which was developed by Information Systems Audit and Control Association (ISACA) and IT Government Institute in 1996. COBIT has been employed by companies which need to be compliant with SOX as well as being used by the Auditors who do assess the control features. COBIT’s approximately 300 control objectives are usually grouped into Executive summary, Framework, Control Objectives, Control Practice, Management Guidelines, and Audit Guidelines which constitutes the six BOBIT components. COBIT’s

Operational controls focus on techniques and procedures put in place by Information Technology staff or systems managers. The purpose is to increase security and provide deterrence via system controls.

The two words ‘information’ and ‘communication’ are often used interchangeably, but they signify quite different things. Information is giving out; communication is getting through, (Harris, 2015). Communication is a vital element in the success of any health care field

Effective communication also must occur in a broader sense, flowing down, across and up the organization. All personnel must receive a clear message from top management that control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the work of others. They must have a means of communicating significant information upstream. There also needs to be effective communication with external parties, such as customers, suppliers, regulators and shareholders.

Communication is “the process of relaying information between or among people by the use of words, letters, symbols, or body language” (Cherry & Jacob, 2011, p. 381). Communication is a two- way process; the message conveyed by the sender needs to be heard and understood by the receiver. It is important for “leaders to communicate regularly and consistently with staff” (Shifflet & Moyer, 2010, p. 252). Some

The committee of sponsoring organizations and the Control objectives for information and related technology are important because they supply advice to businesses as to what internal controls should involve. COSO tells a business how to prevent risk or fraud with the internal control it uses, and COBIT with the IT controls, and how to avoid the misuse of funds, or to prevent any

Communication is the conveyance and flow of ideas from one person to another. The exchange of information takes place through letters, words, symbols and nonverbal behaviors. It involves the transmission of ideas from the sender to the receiver. Communication is effective only if the receiver fully understands the transmitted information. Many problems and failures occur in organizations due to poor communication. Objective and goals fail due to misunderstandings in the organization. Effective communication provides a chain of understanding to all participants in the organizational framework. It promotes the flow of information both vertically and horizontally.

Control Weakness: CEO conceals information from the Audit Committee. The Director of Internal Audit also does not feel that the Audit Committee is friendly. Internal Audit has been steered away from the manufacturing process and the reconciliation process by the CEO. Although there is a code of conduct, a monthly newsletter and an open door policy according to the CEO, these efforts do not appear to be successful because of management override. Employees interviewed lack of awareness of these programs. All of these issues are signals of a deficiency of the Control Environment aspect of the COSO framework.

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 “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 is

Communication is the transfer of information in either a written or verbal form or by pictures. Managers spend a lot of time receiving different kinds of communication and analyzing the information and then passing forward the necessary information to others. This can be done either informally or in a formal setting.