THE COMMITTEE OF SPONSORING ORGANIZATIONS OF THE TREADWAY COMMISSION (COSO) Introduction The Committee of Sponsoring Organizations of the Treadway Commission was organized in 1985 and was jointly sponsored by five professional organizations, American Accounting Association (AAA), American Institute of CPA (AICPA), the Institute of Internal Auditors (IIA) , the Association of Accountants and Financial Professionals in Business (IMA), and Financial Executives International (FEI). Each sponsoring
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COSO – INTERNAL CONTROL FRAMEWORK * Internal control structure * Auditor’s assessment of risk * The planning of audit procedures COSO – INTERNAL CONTROL FRAMEWORK * Internal control structure * Auditor’s assessment of risk * The planning of audit procedures RISK ASSESSMENT RISK ASSESSMENT CONTROL ACTIVITIES CONTROL ACTIVITIES MONITORING MONITORING CONTROL ENVIRONMENT CONTROL ENVIRONMENT INFORMATION & COMMUNICATION INFORMATION & COMMUNICATION * Role
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Analysis of the WorldCom Internal Control Using the COSO Model The control environment 1. Integrity and ethical values Integrity and ethical values are the product of the entity’s ethical and behavioral standards, as well as how they are communicated and reinforced in practice. They include management’s actions to remove or reduce incentives and temptations that might prompt personnel to engage in dishonest, illegal, or unethical acts. They also include the communication of entity values and
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Homework – COSO Framework, Internal Controls and Security Internal control systems have five components: (a) control environment, (b) risk assessment, (c) control activities, (d) information and communication, and (e) monitoring. For each of the following items, indicate which component is being applied. Explain your answer! 1) The firm prints and distributes to all employees a copy of the firm’s policies and procedures. Information and communication. Provide policy information
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In regards to the updating of the IT system for the purpose of storing and retrieving information, six areas of risk requiring COSO compliance emerge. The six areas are the proper implementation and maintenance of the new system, the security of the sensitive identity and financial information that is stored on the system, a proper backup security and access methods in the case of a system failure, proper access to the information for the clients and those doing authorized business on a client's
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Touche LLP COSO Board Members David L. Landsittel COSO Chair Marie N. Hollein Financial Executives International Douglas F. Prawitt American Accounting Association Chuck E. Landes American Institute of CPAs (AICPA) Richard F. Chambers The Institute of Internal Auditors Sandra Richtermeyer Institute of Management Accountants Preface This project was commissioned by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which is dedicated to
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CHAPTER 1 1. DEFINITION INTERNAL CONTROL is a process effected by people at every level of an organization, designed to provide reasonable assurance about the achievement of objectives in the – effectiveness and efficiency of operations, - reliability of financial reporting, - compliance with applicable laws and regulations. A PROCESS: it is a multiplicity of processes, a series of actions, that is integrated with the basic management processes of planning, executing and monitoring in order to enable
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case of $25 million to a staggering mean of $400 million. Most cases of fraud come from an overstatement of assets or overstatement of revenues. Who are the perpetrators? Fraudulent financial reporting can happen to any company at any level. The COSO study found that the median revenues and total assets were about $100 million, which is a large increase from the previous study done ten years ago, which found the median to be around $15 million. That is not to say the majority of all offenses occurred
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Strengthening Corporate Accountability and Responsibility with Sarbanes-Oxley Act and COSO Enron, Arthur Andersen, WorldCom. What does these companies and others have in common? They involved audit and corporate governance failures, resulting in the erosion of public confidence. Because of these high-profile corporate and accounting scandals, Congress passed the Public Company Accounting Reform and Investor Protection Act, commonly known as the Sarbanes Oxley Act of 2002 (SOX). SOX mandated
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换一个你的 School of Management, University of Glamorgan Research on Internal Audit Participate in Risk Management-Based on the ERM Framework of COSO By: Weichen Zhu Candidate no: 学号 September 2012 Supervised by: 你导师的名字 The dissertation is submitted as part of the requirement for the award of Masters of Science: 你专业的名字 Declaration This Dissertation has been prepared on the basis of my own work and that where other published and unpublished source materials have been used
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