COSO Framework Assignment Discussion

COSO Framework Assignment Discussion

The COSO framework of internal controls is practiced within companies around the world. The objectives of the COSO framework are closely related to its five components. For this week’s activity, please discuss these five components of the COSO framework. Be sure to include each components’ impact on each of the COSO framework objectives. What do you feel an auditor would most be concerned with during an IT audit? Lastly, discuss suggestions for integrating COSO framework compliance into a company in which you are familiar.

Your paper should meet the following requirements:

• Be approximately 2-4 pages in length, not including the required cover page and reference page.

• Follow APA6 guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.

• Support your answers with the readings from the course and at least two scholarly journal articles to support your positions, claims, and observations, in addition to your textbook. The UC Library is a great place to find resources.

• Be clearly and well-written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.

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SafeAssign Originality Report Summer 2020 – InfoTech Import in Strat Plan (ITS-831-31) – Full Term • Week 12 Research Paper: COSO Framework • Submitted on Sun, Jul 26, 2020, 6:19 PM

Bhavana Banala View Report Summary

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Attachment 1 COSOFramework.docx

%77Running Head: FRAMEWORK 1 FRAMEWORK 2

COSO Framework

Bhavana Banala

University of the Cumberlands

COSO model basically is used in defining internal control that it is a process which is effected through

an entity of the directors board, management in addition to different personnel who are designed to offer assurance which is reasonable concerning the objectives achievement within various categories like;

Financial Reporting Reliability, Operational Effectiveness in addition to Efficiency, Applicable Laws and Regulations Compliance. Within an internal control system which is effective, the COSO’s components

work towards supporting the achievements of an organization’s strategies, mission in addition to business objectives that are related. The five components include; Environment Control- impacts includes

exercising ethical and integrity values, making a competence commitment, using the directors board in addition to the audit committee, facilitating philosophy of the management as well as the operating style, creation of organizational structure. The second component is assessment of risk- the impacts are;

creates objectives of the whole company, incorporates objectives within the process level, performs identification of risks as well as analysis of risks and managing change. The third component is

activities control impacts the following of procedures in addition to policies, security improvement which involves its network and application, conducting application for management change, planning business continuity as well as backups and performing outsourcing (Dhillon and Andri, 2018). Fourth component is communication and information which impacts the measuring of the information quality, the measuring of the communication effectiveness. The fifth component is monitoring which impacts the performance of ongoing monitoring, conducting evaluations that are separate, reporting deficiencies. The main aim of

the components is working towards establishing the foundation for internal control which is sound in an organization through leadership which is directed, values that are shared in addition to a culture which emphasizes control accountability. Different risks encountered by an organization are identified as well as routinely assessed within all levels as well as within general functions in an organization. The control

activities in addition to various mechanisms tend to be designed proactively so as to mitigate and address the risks that are significant. Critical information in risk identification and achieving business objectives tends to be communicated through channels that are established all over the organization. The overall

internal control system is continuously monitored and challenges addressed on time. The responsibilities of an IT auditor within the internal controls in addition to an organization’s technology network risks. An auditor is supposed to identify weaknesses within a systems network in addition to generating a plan for action in preventing the breeches of security within the technology. An IT audit evaluates the effectiveness as well as the design of the internal control system, which includes security protocols and efficiency, processes for development in addition to oversight or governance of IT (King, 2016). For a transition to occur from the framework which is original to the COSO framework in connection with the entity’s report on the internal control concerning monetary reporting for the purpose of regulatory, the senior management is supposed to evaluate how the internal control of the system of the entity implements the 17 principles which are linked with the five internal control components. If the organization is using the original framework, then the management should identify first in addition to assessing any given implications associated with application of the framework into the current internal control system of the entity. Senior management is supposed to discuss with the directors’ board its plan of adopting the framework, whereby directors’ board needs to oversee the assessment of the management on any given implications in addition to determination of any actions that are appropriate to have the framework applied (Babkin, et.al, 2017, May).

References

Babkin, E., Malyzhenkov, P., & Rossi, F. (2017, May). The Perspectives of DEMO Application to

COSO Internal Audit Framework Risks Mitigation. In Enterprise Engineering Working Conference (pp. 66-73). Springer, Cham. Retrieved from https://link.springer.com/chapter/10.1007/978-3-319-57955-9_5

Dhillon, S. R. S., & Andri, A. (2018). The Effect of Internal Control by using COSO Framework on

Revenue Toward Employee Performance: A Case Study in Public Hospital of South of Tangerang, Indonesia. Indonesia (December 11, 2018). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?

abstract_id=3299235

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King, A. M. (2016). A guide to COSO’s framework: an important, practical resource to help your

transition to the updated COSO internal control framework. Strategic Finance, 97(10), 12-13.

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id=GALE%7CA459634941&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=1524833X&p=AONE&sw=w

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