Coso

In: Business and Management

Submitted By besmith93
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Pages 12
Internal Control - Integrated Framework
Executive Summary
Senior executives have long sought ways to better control the enterprises they run. Internal controls are put in place to keep the company on course toward profitability goals and achievement of its mission, and to minimize surprises along the way. They enable management to deal with rapidly changing economic and competitive environments, shifting customer demands and priorities, and restructuring for future growth. Internal controls promote efficiency, reduce risk of asset loss, and help ensure the reliability of financial statements and compliance with laws and regulations. Because internal control serves many important purposes, there are increasing calls for better internal control systems and report cards on them. Internal control is looked upon more and more as a solution to a variety of potential problems.

Internal Control
Internal control means different things to different people. This causes confusion among businesspeople, legislators, regulators and others. Resulting miscommunication and different expectations cause problems within an enterprise. Problems are compounded when the term, if not clearly defined, is written into law, regulation or rule. This report deals with the needs and expectations of management and others. It defines and describes internal control to: 1. Establish a common definition serving the needs of different parties. 2. Provide a standard against which business and other entities--large or small, in the public or private sector, for profit or not--can assess their control systems and determine how to improve them. Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: 1. Effectiveness and…...

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...financial reporting? Fraudulent financial reporting can cause vital consequences for the organization and its stakeholders. Fraud affected different sizes of companies. Unfortunately, the affected sizes of companies became larger than COSO’s 1999 study. The larger sizes of companies be affected, the more people involve in the fraud. The COSO Fraudulent Financial Reporting also states, “once fraud is initiated in one financial period, management often continues to perpetrate fraud in each quarterly and annual financial statement filing for about two years.” The longer period of time of fraud involves will cause more seriously consequences in the future. Thus, both large sizes and longer period happen at the same time will largely increase misstatement or misappropriation. 2. Who are the perpetrators? The perpetrator from the most frequently named to the least in an AAER: CEO, CFO, CEO and CFO, controller, COO, other Vice Presidents, and other titles. 3. What is happening with corporate governance? There are not significant differences of board governance characteristics between fraud and non-fraud firms. COSO gathered a sample of 203 no-fraud companies that is similar to 203 fraud companies to make a comparison. Because lack of notable statistical differences in many of the governance characteristics, many board of director characteristics are not significantly differ between fraud and non-fraud firms. 4. Are auditors doing a good......

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Coso

...requesting AICPA permission is to first display our Website homepage on the Internet at www.aicpa.org, then click on the "privacy policies and copyright information" hyperlink at the bottom of the page. Next, click on the resulting copyright menu link to COPYRIGHT PERMISSION REQUEST FORM, fill in all relevant sections of the form online, and click on the SUBMIT button at the bottom of the page. A permission fee will be charged for th e requested reproduction privileges. Committee of Sponsoring Organizations of the Treadway Commission (COSO) Oversight COSO Chair American Accounting Association American Institute of Certified Public Accountants Financial Executives International Institute of Management Accountants The Institute of Internal Auditors Representative John J. Flaherty Larry E. Rittenberg Alan W. Anderson John P. Jessup Nicholas S. Cyprus Frank C. Minter Dennis L. Neider William G. Bishop, III David A. Richards Project Advisory Council to COSO Guidance Tony Maki, Chair Partner Moss Adams LLP James W. DeLoach Managing Director Protiviti Inc. John P. Jessup Vice President and Treasurer E. I. duPont de Nemours and Company Tony M. Knapp Senior Vice President and Controller Motorola, Inc. Douglas F. Prawitt Professor Brigham Young University Mark S. Beasley Andrew J. Jackson Professor Senior Vice President of North Carolina State University Enterprise Risk Assurance Services American Express Company Jerry W. DeFoor Vice President and Controller Protective Life......

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Coso

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Coso

...Article Critique 2 Newly released COSO framework a fresh look at internal control ACCT 531 Brittany Perry Liberty University Dr. Stanley Staff June 16, 2013 Introduction This article I chose to critique for this assignment is titled “Newly released COSO framework a fresh look at internal control” from Journal of Accountancy. This article contained useful and informative information on the newly released framework. I will discuss the strengths, weakness, and suggestions that were discuss in the article. Article Summary The focus of the article centers on the newly released COSO framework, which provides the release of an update to the integrated framework. “COSO is an organization of five private-sector organizations, including the AICPA, participating in a collaborative effort to provide guidance on enterprise risk management, internal control, and fraud deterrence” (Tysiac, 2013, para. 3). COSO was first introduced in 1992, which was established to attest internal control. This will be the first update since the establishment in 1992. The COSO’s new framework contains, the articulation of 17 specific principles spread across the five main components of internal control (Cohn, 2013). The reason for the update came about because in the past five components need to be functioning in order to have internal control. With the new release the framework will better reflect the technology and globalization with has become an essential part of the current business......

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Coso 1992 Summary 1-4

...their jobs, such control also supports and adequate segregation of duties; - application system development and maintenance: traditionally a high-cost area (for MIS resources, time needed, skills of people performing these tasks, hard- and software required). To control these costs, many entities have some form of system development methodology. Application controls: relates to computerized steps within the application software and related manual procedures to control the processing, authorization and validity of various types of transactions. Relationship: general controls permit the functioning of application controls, which depend on computer processes. Both are needed to ensure accurate and complete information processing. Reference: COSO Integrated Framework 1992 ...

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Coso

...requesting AICPA permission is to first display our Website homepage on the Internet at www.aicpa.org, then click on the "privacy policies and copyright information" hyperlink at the bottom of the page. Next, click on the resulting copyright menu link to COPYRIGHT PERMISSION REQUEST FORM, fill in all relevant sections of the form online, and click on the SUBMIT button at the bottom of the page. A permission fee will be charged for th e requested reproduction privileges. Committee of Sponsoring Organizations of the Treadway Commission (COSO) Oversight COSO Chair American Accounting Association American Institute of Certified Public Accountants Financial Executives International Institute of Management Accountants The Institute of Internal Auditors Representative John J. Flaherty Larry E. Rittenberg Alan W. Anderson John P. Jessup Nicholas S. Cyprus Frank C. Minter Dennis L. Neider William G. Bishop, III David A. Richards Project Advisory Council to COSO Guidance Tony Maki, Chair Partner Moss Adams LLP James W. DeLoach Managing Director Protiviti Inc. John P. Jessup Vice President and Treasurer E. I. duPont de Nemours and Company Tony M. Knapp Senior Vice President and Controller Motorola, Inc. Douglas F. Prawitt Professor Brigham Young University Mark S. Beasley Andrew J. Jackson Professor Senior Vice President of North Carolina State University Enterprise Risk Assurance Services American Express Company Jerry W. DeFoor Vice President and Controller Protective Life......

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Coso Mindmap

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Coso Enterprise Risk Management

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Coso Report

...ORGANIZATIONS OF THE TREADWAY COMMISSION (COSO) Introduction The Committee of Sponsoring Organizations of the Treadway Commission was organized in 1985 and was jointly sponsored by five professional organizations, American Accounting Association (AAA), American Institute of CPA (AICPA), the Institute of Internal Auditors (IIA) , the Association of Accountants and Financial Professionals in Business (IMA), and Financial Executives International (FEI). Each sponsoring organization appoints representatives to periodically work together on specific projects. The goal of COSO is to provide leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence to enhance organizational governance and decrease fraud 1. The History of COSO and the Creation of the COSO Framework Due to the public criticisms against both accounting professionals and the U.S. Securities and Exchange Commission (SEC), the Treadway Commission was formed in 1985 to inspect fraudulent financial statements, especially in the aspects of reliability and accuracy. In 1987, the Treadway Commission issued its first report on fraudulent financial reporting. COSO was created because of this report. In 1992, COSO released the report titled Internal Control-Integrated Framework, which defined the concept of internal control and established a framework on how to make internal control systems work effectively. The 1992 COSO framework......

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Coso Framework

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Coso Report - Financial Reporting Fraud

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Coso Model

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Coso Report

...COSO报告 出自 MBA智库百科(http://wiki.mbalib.com/) 目录 • 1 COSO报告概述 • 2 COSO报告中内部控制的组成 • 3 COSO报告中内部控制的职责 • 4 COSO报告的现实意义 • 5 COSO报告的局限性 • 6 COSO报告对我国企业的启示 COSO报告概述   COSO是全国虚假财务报告委员会下属的发起人委员会(The Committee of Sponsoring Organizations of The National Commission of Fraudulent Financial Reporting)的英文缩写。根据萨班斯法案第404节条款以及美国证券交易委员会(SEC)的相应实施标准,要求公众公司的管理层评估和报告公司最近年度的财务报告的内部控制的有效性。2004年3月9日,PCAOB发布了其第2号审计标准:“与财务报表审计相关的针对财务报告的内部控制的审计”,并于6月18日经SEC批准。SEC对该标准的认同等于从另外一个侧面承认了1992年COSO公布的《内部控制—综合框架》(也称“COSO内部控制框架”)。这也表明COSO框架已正式成为美国上市公司内部控制框架的参照性标准。   1992年Treadway委员会经过多年研究,针对公司行政总裁、其他高级执行官、董事、立法部门和监管部门的内部控制进行高度概括,发布《内部控制一整体框架》(Interna Control-Integrated Framework)报告,即通称的COSO报告。该报告第一部分是概括;第二部分是定义框架,完整定义内部控制,描述它的组成部分,为公司管理层、董事会和其他人员提供评价其内部控制系统的规则;第三部分是对外部团体的报告;是为报告编制报表中的内部控制的团体提供指南的补充文件;第四部分是评价工具,提供用以评价内部控制系统的有用材料。 COSO报告提出内部控制是用以促进效率,减少资产损失风险,帮助保证财务报告的可靠性和对法律法规的遵从。COSO报告认为内部控制有如下目标:经营的效率和效果(基本经济目标,包括绩效、利润目标和资源、安全),财务报告的可靠性(与对外公布的财务报表编制相关的,包括中期报告、合并财务报表中选取的数据的可靠性)和符合相应的法律法规。 [编辑] COSO报告中内部控制的组成   1.控制环境(Control environment)   它包括组织人员的诚实、伦理价值和能力;管理层哲学和经营模式;管理层分配权限和责任、组织、发展员工的方式;董事会提供的关注和方向。控制环境影响员工的管理意识,是其他部分的基础。   2.风险评估(risk assessment)   是确认和分析实现目标过程中的相关风险,是形成管理何种风险的依据。它随经济、行业、监管和经营条件而不断变化,需建立一套机制来辨认和处理相应的风险。   3.控制活动(control activities)   是帮助执行管理指令的政策和程序。它贯穿整个组织、各种层次和功能,包括各种活动如批准、授权、证实、调整、经营绩效评价、资产保护和职责分离等。   4.信息和交流(information and communication)   信息系统产生各种报告,包括经营、财务、守规等方面,使得对经营的控制成为可能。处理的信息包括内部生成的数据,也包括可用于经营决策的外部事件、活动、...

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