Question

Should management assessment of internal control over financial reporting consider all of COSO components Are could it be based only on the controls over the processing of transactions?

Answer 1

ANSWER

The management should consider all components of COSO

Those are as follows

• CONTROL ENVIRONMENT: It influences the feeling a substance, goes about as establishment and imparts sense discipline.
• RISK ASSESSMENT:There are outsideand inner dangers looked by a substance. In chance appraisal the setting up of interlinked and reasonable destinations,
• CONTROL ACTIVITIES: They ensure that the orders are influenced in soul and the requirec activities are affected for tending to the dangers to achieve the association's destinations.
• INFORMATION AND COMMUNICATION: Relevant data is to be sorted out in a way and inside the time limitations that encourage the completing of the obligations. This guides in maintaining the business procedures and exercises.
• OBSERVING ACTIVITIES: The nature of the presentation of the framework is to be surveyed. 1 nonstop supervising of the exercises and particular assessment or a mix of the two. Along these lines, compelling inside control necessitates that each of the five segments ought to be executed and works successfully. In particular, the controls should be viably structured and execute, These contemplations are vital for interna control to accomplish the planned advantages.