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Component
Description
Control environment
The core of any business is its-people-their individual attributes,
including integrity, ethical values, and competence-and the
environment in which they operate. They are the engine that drives
the organization and the foundation on which everything rests.
Control activities
Control policies and procedures must be established and executed
to help ensure that the actions identified by management as
necessary to address risks to achievement of the organization's
objectives are effectively carried out.
Risk assessment
The organization must be aware of and deal with the risks it faces.
It must set objectives so that the organization is operating in
concert. It must also establish mechanisms to identify, analyze,
and manage the related risks.
Information and
communication
Surrounding the control activities are information and communication
systems that enable the organization to capture and exchange
the information needed to conduct, manage, and control its
operations.
Monitoring
The entire process must be monitored, and modifications made
as necessary so the system can react dynamically and change
as conditions warrant.
Formatted Table
Figure 2.2 Five Interrelated Components of COSO’s Internal Control Model
2.5 Flowchart
The explanation on Flowchart would include discussion on the definition and
various types
of flowchart that are
applicable in supporting
the
illustration and
documentation process of this thesis. The flowcharts used in the analysis document
flowcharts.
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