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fully-integrated and complete application control necessary in managing the RC
and the EC.
2.4.5 COSO’s Internal Control-Integrated Framework
The Committee
of Sponsoring
Organizations (COSO)
is a
private-sector group
Comment
[RGB1]:
Section too short. Can you
provide some examples
of COSO at work?
consisting
of
the American Accounting Association,
the American
Institute
of
Certified
Public Accountants,
the
Institute of
Internal
Auditors,
the
Institute of
Management Accountants, and the Financial Executives Institute. In 1992,
COSO issued the Internal Control-Integrated Framework, which defines internal
controls
and
provides
guidance
for
evaluating
and
enhancing
internal
control
systems. The report is widely accepted as the authority on internal controls and is
incorporated into policies, rules, and regulations that are used to control business
activities. COSO’s internal control model has five crucial components, which are
summarized in Figure 2.2 (Romney & Steinbart 2006, p. 195)..
The components of COSO’s internal control model used to analyze the study are:
o
Control Activities
o
Information and Communication
o
Monitoring
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o
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