COSO internal control framework and financial management assertions.doc

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AC Unit 4 Discussion Board Name Institution COSO internal control framework and financial management assertions In the year 1992, a model to evaluate internal controls was designed by the committee of sponsoring organizations of the Treadway Commission (COSO). The model defines recognized standards that which an organization can use to measure the effectiveness of internal control systems. Concerning the COSO model, internal control is a process effected by an organization’s management, a board of directors or other personnel to ensure achievements of objectives like the reliability of financial reporting. For effective internal control, some components need to support achievement of the company’s strategies, mission or business objectives. The critical component of the COSO model includes; control environment, risk assessment, control activities, monitoring, information, and communication. In a control environment, standards, structures, and processes that provide the basis to carry out the internal control in the organization are set. Senior management establishes the tone regarding the importance of the control environment. Both external and internal risks are

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