auditing assignment Chapter 7

auditing assignment Chapter 7 - X inlei Song (2518366)...

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Xinlei Song (2518366) 7-24 a. Internal control-Integrate Framework A process, effected by the entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives on the following categories: Reliability of financial reporting. Effectiveness and efficiency of operations. Compliance with applicable laws and regulation. Its Purpose The Committee of Sponsoring Organizations (COSO) commissioned a study to: Establish a common definition of internal control to serve the needs of different parties. Provide a standard against which businesses and other entities can assess their control systems and determine how to improve them. b. 1. The definition emphasizes that internal control is a process, which is effected by individuals. 2. The concept of reasonable assurance addresses internal control cannot provide absolute assurance, which should recognizes that the cost of an organization’s internal control should not exceed the benefits expected to be obtained. 3.
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This note was uploaded on 10/26/2010 for the course ACCT 225539 taught by Professor Peter during the Spring '10 term at Argosy University.

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auditing assignment Chapter 7 - X inlei Song (2518366)...

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