COSO report - the composition of the internal control
1.Controlenvironment
It includes the organization of personnel, honest, ethical values and competencies; management philosophy and business model; management of the allocation of rights and responsibilities, organization, development of staff approach; the Board of Trustees of the attention and direction. Control of the management of staff awareness of environmental impact, is the other part of the foundation.
2.riskassessment
To achieve its objectives is to identify and analyze the risks associated with the process is the basis for the formation of what risk management. It is with the economy, industry, regulatory and business conditions are constantly changing, the need to establish a mechanism to identify and deal with the corresponding risks.
3.controlactivities
Instruction is to help executive management policies and procedures. It runs through the entire organization, at all levels and functions, including various activities, such as approval, authorization, confirmation, adjustment, business performance evaluation, asset protection and separation of duties and so on.
4.informationand
communication Information system to produce a variety of reports, including management, finance, Compliance, etc., makes it possible to control the operation. The information includes dealing with internally generated data, but also can be used for operational decision-making external events, activities, status information and external reporting. All personnel must understand their own control system, the location, as well as their mutual relations; must be taken seriously given control of their own responsibilities, but also must work with outside groups such as customers, suppliers, regulators and shareholders to communicate effectively .
5.monitoring
Monitoring carried out in the course of business, through the normal management and control activities and staff activities in carrying out his duties in the process of monitoring, to assess the quality of operation of the system. The different steps in the evaluation depends on the scope and risk assessment and implementation of the monitoring program effectiveness. For the internal control deficiencies should be promptly reported to higher authority, serious problems to report to senior management and board of directors.
What is a COSO Report?
