Essay on Internal Control Checklist

870 Words Apr 8th, 2012 4 Pages
Comprehensive Checklist for Evaluating Internal Controls

ACC/544: Internal Control Systems

Comprehensive Checklist for Evaluating Internal Controls
As defined by the COSO framework, there are five elements that are used to explain an internal control system applied in an organization. These elements include: 1. Control Environment – The control environment is the foundation for the other four components of internal control. It outlines discipline and structure for the internal control method and consists of philosophy, ethical values, operating style, risk appetite, functioning of the board, and organizational structure (Louwers, Ramsay, Sinason, & Strawser, 2007). 2. Risk Assessment - This component evaluates the way in
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| | | |Has the management team developed and properly conveyed the correct ethical standards to be observed? |
| | | |Have objectives and programs been created in support of the above referenced mission statement? |
| | | |Are the established objectives practical, measureable, and achievable? |
| | | |Are the programs and performance of the employees evaluated on a regular basis to determine relevance and |
| | | |achievement? |
| | | |Do fiscal and operational outcome motivators interfere with moral and ethical objectives? |
| | | |Are operating methods up-to-date? |
| | | |Is the morale of the employees at an appropriate level? |
| | | |Is the rate of employee turnover

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