Define internal control and describe how the COSO framework helps firms implement this definition.

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Define internal control and describe how the COSO framework helps firms implement this definition.

Define internal control and describe how the COSO framework helps firms implement this definition.

business accounting

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Answer 1

Answer #1

Internal control as defined by the COSO framework is as follows:

”internal control is a process, carried out by the people of an entity i.e. by board of directors, the administration and other personnel, which is expected to provide only reasonable security in respect of the achievement of objectives in the following categories:

Effectiveness and efficiency of the operations
Reliability of financial reports
'Compliance with applicable laws and regulations.

Thus, COSO framework provides a model for the adoption and evaluation of internal control.

COSO framework helps a firm to implement internal control by making it focus on following several key concepts:

internal control is a process
it is means and not end
It is the responsibility of people to adopt, implement and evaluate

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Answer 2

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Define internal control and describe how the COSO framework helps firms implement this definition.

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Define internal control and describe how the COSO framework helps firms implement this definition.

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