Describe a) what you believe to be the most important COSO component; and b) why. (If for some reason your mind has taken a nap, see question #2 which identifies all 5).
Accountants utilize the body of knowledge called GAAP in the performance of their duties partly to ensure comparability and consistency in the preparation of accounting records / financial statements. Auditors on the other hand perform their responsibilities following GAAS as defined within the AICPA SASs or PCAOB Auditing Standards. What does this use ensure?
Control Environment is the most important component in the COSO-based audit framework. Control Environment is the set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. The board of directors and senior management establish the tone at the top regarding the importance of internal control including expected standards of conduct. During the course of audit, the control environment is assessed through discussions with administrative management and employees. Adequate training, written policies and procedures, and the area’s general control structure are components of the control environment evaluation. Management sets the tone for the entire area by maintaining a positive attitude toward internal controls and compliance with University, state, and federal requirements. Control environment also encompasses the culture, ethical values, teamwork, morale, and development of administrative employees.
Management reinforces expectations at the various levels of the organization. The control environment comprises the integrity and ethical values of the organization; the parameters enabling the board of directors to carry out its governance oversight responsibilities; the organizational structure and assignment of authority and responsibility; the process for attracting, developing, and retaining competent individuals; and the rigor around performance measures, incentives, and rewards to drive accountability for performance. The resulting control environment has a pervasive impact on the overall system of internal control.
Control Environment component has five (5) principles relating to it:
These principles in turn have approaches which serve as guides in accomplishing them. The approaches, although defined, are not meant to restrict entities application as they can introduce approaches of their own especially when not specifically addressed by the Framework.
Describe a) what you believe to be the most important COSO component; and b) why. (If for some reason your mind has taken a nap, see question #2 which identifies all 5).
Describe a) what you believe to be the most important COSO component; and b)why. (If for some reason your mind has taken a nap, see question #2 which identifies all 5). Accountants utilize the body of knowledge called GAAP in the performance of their duties partly to ensure comparability and consistency in the preparation of accounting records / financial statements. Auditors on the other hand perform their responsibilities following GAAS as defined within the AICPA SASs or PCAOB Auditing Standards. What does this...
1.5 pts. Accountants utilize the body of knowledge called GAAP in the performance of their duties partly to ensure comparability and consistency in the preparation of accounting records / financial statements. Auditors on the other hand perform their responsibilities following GAAS as defined within the AICPA SASs or PCAOB Auditing Standards. What does this use ensure? 2.10 pts. Compare (similarities) OR contrast (differences) between the AICPA SASs & the PCAOB Auditing Standards?