The Ethics Of The Treadway Commission ( Coso )

984 WordsNov 14, 20154 Pages
Business ethics refers to a code of morals that specify what form of conduct is expected from an individual. For that reason was established a Code of Professional Conduct which provides the set of principles to guide members of an organization in performing their duties in professional and accountable way. Every member of an organization from top to bottom is responsible to act in an ethical way. Members of the company very often get involved in misconduct when management sets up unrealistic objectives. Consequently employees are forced to reach these objectives using any method possible. Final result justifies unethical conduct. Therefore a tone at the top plays important role in creating ethical and accountable atmosphere in the organization. Most importantly company should set up effective internal control. In order to do that the Committee of Sponsoring Organizations of the Treadway Commission (COSO) provides framework on how to design and evaluate internal control. Internal control provides assistance in “overseeing operations, compliance and reporting of transactions, which is essential in achievement of objectives set by the company”. Internal control is made up of five components such as “Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities.” Therefore in order for internal control run effectively and for the company being able to achieve its objectives all five components should be

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