Committee of Sponsoring Organizations (COSO) Internal Control Framework Flashcards
Introduced in ____ to assess internal control effectiveness
1992
COSO is recognized as the…
leading authority on internal controls.
What is the framework acronym?
C.R.I.M.E
(C) stands for…
Control Environment
(R) stands for…
Risk Assessment
(I) stands for…
Information & Communication
(M) stands for…
Monitoring
(E) stands for…
Existing Control Activities
Control Environment examples:
- tone at the top
- integrity and ethical values
- commitment to competence
- organizational structure
Explain the Information & Communications Systems step
Looking at systems used to process, record, and report information
What is Monitoring?
The process that assesses the quality of internal control performance over time.
* typically a function of internal audit
What is the Control Activities acroynm?
P.A.I.D.T.I.P.S
First (P) stands for…
Prenumbered documents
* checks in a check book
(A) stands for…
Authorization of transactions
* signed approvals
First (I) stands for…
Independent Checks
* doing a bank reconciliation
