Internal Controls, what are they?
process, effected by the entity’s board of directors, management, and other
personnel, designed to provide reasonable assurance regarding the achievement
of objectives related to operations, reporting, and compliance.
 
Who provides the framework?
COSO: Committee of Sponsoring Organizations of the Treadway Commission
 
The framework provides 3 objectives
1.     
Operations
2.     
Reporting
3.     
Compliance
 
Objectives (ORC)
1.     
Operations
2.     
Reporting
3.     
Compliance
 
Components (mnemonic)
1.     
Control Environment - set of standards,
processes, and structures that provide the basis for carrying out internal
control across the organization.
2.     
Risk Assessment - involves a dynamic and
iterative process for identifying and assessing risks to the achievement of
objectives.
3.     
Information & Communication - are
the actions established through policies and procedures that help ensure that
management’s directives to mitigate risks to the achievement of objectives are
carried out.
4.     
Monitoring Activities - are the continual
iterative process of providing, sharing, and obtaining necessary information.
5.     
Existing Control Activities-  represents
the process of ongoing and periodic evaluations to ascertain whether the
components of internal control are present and functioning. To the extent
control deficiencies are found, they are communicated in a timely manner to
responsible parties, including senior management and elected officials, for
corrective action.







































Internal Controls, what are they?
process, effected by the entity’s board of directors, management, and other
personnel, designed to provide reasonable assurance regarding the achievement
of objectives related to operations, reporting, and compliance.
 
Who provides the framework?
COSO: Committee of Sponsoring Organizations of the Treadway Commission
 
The framework provides 3 objectives
1.     
Operations
2.     
Reporting
3.     
Compliance
 
Objectives (ORC)
1.     
Operations
2.     
Reporting
3.     
Compliance
 
Components (mnemonic)
1.     
Control Environment - set of standards,
processes, and structures that provide the basis for carrying out internal
control across the organization.
2.     
Risk Assessment - involves a dynamic and
iterative process for identifying and assessing risks to the achievement of
objectives.
3.     
Information & Communication - are
the actions established through policies and procedures that help ensure that
management’s directives to mitigate risks to the achievement of objectives are
carried out.
4.     
Monitoring Activities - are the continual
iterative process of providing, sharing, and obtaining necessary information.
5.     
Existing Control Activities-  represents
the process of ongoing and periodic evaluations to ascertain whether the
components of internal control are present and functioning. To the extent
control deficiencies are found, they are communicated in a timely manner to
responsible parties, including senior management and elected officials, for
corrective action.


















In today's episode, we discuss the importance of internal controls to help organizations achieve their objectives. Do your organization have reasonable controls in place to operate, report, and stay compliant? Do you understand the COSO framework? Tune in to learn.

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