Coso.docx - Using Principle 11 in COSO discuss at least 8...

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Using Principle 11 in COSO, discuss at least 8 controls with technological significance that can assist as internal controls in an Accounting Information System. Hint: Describe the principle and its associated focus points, then discuss appropriate governance such as procedures, IT governance, infrastructure, IT general controls and so forth. Information technology advances can drive efficiency and growth, hence maintain a proper control over information technology is very important. There is a model to evaluate internal controls developed by Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the year 1992. This model used by a lot of organization to measure the effectiveness of their internal control. COSO framework has 17 principals of effective internal control. Principle 11 of the updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) provides guidelines for assessing the effectiveness of information technology controls. Principle 11 states that the organization selects and develops general control activities over technology to support the achievement of objectives. Points of focus supporting the principle state that the organization: Determines dependency between the use of technology in business processes and technology general controls. Establishes relevant technology infrastructure control activities. Establishes relevant security management process control activities. Establishes relevant technology acquisition, development, and maintenance process control activities. 1
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Below are the eight controls with technological significance that can assist as internal controls in an Accounting Information System: a) Segregation of Duties Segregation of duties could be a very important part of the many controls. A company should not depend on only one person to process all the data, all the responsibility should be distributed to the different person. Functions as authorizing, processing, inputting, initiating and checking which done by the different individual will reduce error created, omission or other irregularity and authorize obscure the proof. For an accounting information system, segregation of duties can be done by given access depend on the job requirement or position. Example a clerk will only able to input the data while the manager allows to authorize, view or posting the transaction. A payable clerk will only allow to key in supplier invoices and issue payment. While a receivable clerk only allows issuing invoice. IT environment normally segregation their duties to system development and IT operations. IT development person will only have little control over the production system. IT operations are the responsible person to running the production system except changing deployment and have little control or even no responsibility in the development process. This control will prevent the operators from modifying or access the data unauthorized. Different duties should be assigned during the implementation stage and other change 2
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  • Summer '17
  • Duminski
  • Information technology controls, Physical and Environmental Controls, Systems Development and Acquisition Controls

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