Assignment ACC653-NII Prepared by: Nadia Rezwana Sattar Student #: 112516158 Prepared for: Prof. John Harris
Part A Identifying entity-level controls: As mentioned in the case, entity-level controls may exist in any of the five COSO components of internal control. We can state that entity-level control derives mostly from the control environment of COSO. Every organization has its distinct entity objectives and application policies, as each organization is managed by a different individual who uses discrete judgements. Accountability for internal control - Organization holds employees accountable for their internal control responsibilities in the pursuit of purposes. Therefore, I would expect to find out who is held responsible for internal control activities. The organization must inform if any changes have been made to the assignment of authority and the department heads must be aware of that. Commitment to integrity and ethical values - The control environment of an organization infuses all areas of the organization and influences the way individuals approach internal control. Integrity and ethics go hand in hand with strong internal control. Every organization demonstrate a commitment to ethical values and integrity and is expected to follow by every department for organizational success. Management leads by example when comes to difficult times and ethical decision making. Organization hierarchy - Every organization follows a structure when it comes to outlining rules and responsibilities of senior management. The hierarchy outlines the reporting relationships as well as decision making authority. It will be expected of the organization to have this documented and followed. The structure provides a good insight into key areas and initiatives.
Audit function independent from management - It would be expected of The board of directors to demonstrate independence from management and exercise oversight of the development and performance of internal control. The internal audit function should be independent and objective to be able to guide risk management, control and governance process.
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- Spring '16
- Management, control- Organization