Introduction to COSO, Internal Control, and the COSO Cube

Question 1

What is COSO

Answer 1

Committee of Sponsoring Organizations of the Treadway Commission - Created by 5 organizations to develop integrated internal control model

Question 2

Why do we have internal control? What are the 3 objectives?

Answer 2

ORC - Operations, Reporting, Compliance

Question 3

What are Operations (ORC)?

Answer 3

Objectives related to mission and vision of entity

Question 4

What is Reporting (ORC)?

Answer 4

Objectives related to prep of reports

Question 5

What is Compliance (ORC)?

Answer 5

Complying with external laws and regulations

Question 6

What is internal control? What are the 5 components?

Answer 6

Control (internal environment) - Management’s philosophy toward controls, organizational structure, policies, procedures

Risk Assessment - Process of identifying, analyzing, and managing risks involved in achieving organization’s objectives

Information and Communication -

Monitoring -

Control Activities - Policies and procedures that ensure actions are taken to address the risks related to achievement of management’s objectives