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AssignmentACC653-NIIPrepared by: Nadia Rezwana SattarStudent #:112516158Prepared for:Prof. John Harris
Part AIdentifying entity-level controls: As mentioned in the case, entity-level controls may exist inany of the five COSO components of internal control. We can state that entity-level controlderives mostly from the control environment of COSO. Every organization has its distinct entityobjectives and application policies, as each organization is managed by a different individualwho uses discrete judgements. Accountability for internal control- Organization holds employees accountable for theirinternal control responsibilities in the pursuit of purposes. Therefore, I would expect to find outwho is held responsible for internal control activities. The organization must inform if anychanges have been made to the assignment of authority and the department heads must be awareof that. Commitment to integrity and ethical values- The control environment of an organizationinfuses 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 demonstratea commitment to ethical values and integrity and is expected to follow by every department fororganizational success. Management leads by example when comes to difficult times and ethicaldecision making. Organization hierarchy- Every organization follows a structure when it comes to outliningrules and responsibilities of senior management. The hierarchy outlines the reportingrelationships as well as decision making authority. It will be expected of the organization to havethis documented and followed. The structure provides a good insight into key areas andinitiatives.
Audit function independent from management- It would be expected of The board ofdirectors to demonstrate independence from management and exercise oversight of thedevelopment and performance of internal control. The internal audit function should beindependent and objective to be able to guide risk management, control and governance process.