Internal control means different things to different people. This causes confusion among businesspeople, legislators, regulators and others. Resulting miscommunication and different expectations cause problems within an enterprise. Problems are compounded when the term, if not clearly defined, is written into law, regulation or rule. (COSO, 2006) Internal control over financial reporting has always been a major area in the governance of an organization, and this importance has been magnified in recent years. This tool is intended to give audit committees basic information about internal control to understand what it is, what it is not, how it can be used most effectively in the organization, and the requirements of management with respect to the system of internal control over financial reporting. (AICPA, 2006)
UTC delivers a premium internal audit service that enables its business segments to achieve superior performance. UTC seeks effective risk management, identify opportunities for enhanced efficiencies, foster compliance and facilitate constructive change. The aim of corporate governance at UTC is an ethical culture in which 100 % compliance with laws and regulations is the standard. UTC's internal audit teams conduct risk-based audits and recommend strategic solutions to the UTC business units. These controls are designed to provide reasonable assurance that the Corporation’s assets are safeguarded, that transactions are executed in accordance with management’s authorizations and that the financial records are reliable for the purpose of preparing financial statements. In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Tread way Commission in Internal Control — Integrated Framework ...