Evaluate the five essential control components for managers and auditors established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Determine the control that is the most critical for the well-being of any company and explain why
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The five essential control components for managers and auditors established are:
1) Control environment : Control environment factors include the integrity, ethical values,
management's operating style, delegation of authority systems.
2)Risk assessment: Risk assessment is the identification and analysis of relevant risks to the achievement of assigned objectives
3)Control activities: Control activities occur throughout the organization, at all levels and
in all functions. They include a range of activities as diverse as
approvals, authorizations, verifications, reconciliations, reviews of
operating performance, security of assets and segregation of duties.
4)Information and communication: Information systems play a key role in internal control systems as they
produce reports, including operational, financial and
compliance-related information.Effective communication must ensure information flows down, across and up the organization.
5)Monitoring: Internal control deficiencies detected through these monitoring activities should be reported
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Aug 2nd, 2015
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