RUNNING HEAD: Corporate Compliance: Committee of Sponsoring Organization
Corporate Compliance: Committee of Sponsoring Organization (COSO)
MBA/560 Enterprise Risk
University of Phoenix
Abstract
Internal controls in any organization were executives are constantly keeping a close look on the accuracy and effectiveness of these controls to help improving them. According to the Committee of Sponsoring Organization, the implementation of internal controls helps guide companies in reaching towards their profitability goals. These are accomplishment of their mission statement, which helps minimize any unexpected events that may occur. They can be analysis to describe the importance of internal control, identify effective internal control, and illustrate the relationship between ethics and internal control and the importance of the Sarbanes-Oxley Act.
Internal Controls
"Internal control is a process, affected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives." (COSO) It's an essential part of a company's financial and business policies and procedures. Internal control systems function at different levels of effectiveness in any organization is one that provides reasonable protection of assets, reliability of financial information. An effective internal control helps the organization not only achieve its goals and mission, but also helps the organization promote more effective operations and reduce the possibility of asset loss. Internal controls, however, do not ensure success. The internal control process consists of five components, control environment, risk assessment, control activities, information and communication, and moni ...