Internal Controls

Internal control describes the policies, plans, and procedures implemented by management of an organization to protect its assets. The 1992 COSO Report is important because it established a common definition of internal control for assessing control systems, as well as determined how to improve controls. Controls have many uses and purposes, this is why businesses look into control systems to find a solution for any problem that it may arise.
PepsiCo mentions that their financial performance could be adversely affected if they are unable to grow their business in emerging and developing markets or as a result of unstable political conditions, civil unrest or other developments and risks in the markets where our products are sold. Their operations outside of the United States, particularly in Russia, Mexico, Canada, the United Kingdom, etc. and they contribute significantly to the revenue and profitability. PepsiCo believes these countries and emerging and developing markets present important future growth opportunities for us

The Management’s Annual Report on Internal Control over Financial Reporting from PepsiCo states that management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of their management, including Chief Executive Officer and Executive Vice President and Chief Financial Officer. They have conducted an evaluation of the effectiveness of their internal control over financial reporting based upon the framework in Internal Control. Based on that evaluation, their management concluded that their internal control over financial reporting was effective.

The control environment establishes the tone of a company and influences the control awareness of the company’s