Internal Control Framework Essay

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INTERNAL CONTROL FRAMEWORK – A FORMAL PROCESS FOR IDENTIFYING SIGNIFICANT BUSINESS RISKS

AKSHAT PARASKUMAR GANDHI
SYMBIOSIS INSTITUTE OF TECHNOLOGY
411042-LAVALE, PUNE E-mail: akshat.gandhi@sitpune.edu.in Contact: +91 88888 20195

ABSTRACT- Internal control is a destine by which an organization's resources are measured, directed and monitored. It plays an important role in preventing collusions and protecting the organization's resources. It’s been designed to anticipate reasonable assurance regarding attainment of objectives such as effectiveness and efficiency of operations, reliability of financial reporting & compliancy with pertinent laws and regulations. Risk management is a fore
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The Directions strengthens the Financial Management Act by citing matters that must be complied with by agencies to implement and maintain appropriate financial management practices; and achieve a logical model of accountability and financial reporting.
Components of Internal Control
The internal control framework model identifies six c that need to be in place and unified to safeguard the achievement of the targets. Compliance, monitoring, information and communication, control activities, risk assessment and control environment are the constituents if the internal control.
Compliance
Compliance activities provide coherent code of accountability and management practices across all stakeholder factions.
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The COSO Internal Control Framework is portrayed as being integrated a single unit with a single set of risks; ERM is depicted as being integrated across the organization allowing departments or divisions to have different objectives, risks, and responses to risks. CoBIT is largely aimed at balancing information technology risks and controls pertinent to enterprise-wide information systems. CSA is a approach for assuring that an organization's internal control system is stable.
Board Responsibilities for Internal Control in Risk Management
The board is responsible for ensuring the design and implementation of appropriate risk management and internal control systems that identify the risks facing the company and enable the board to make a robust assessment of the principal risks. Determining the nature and extent of the principal risks faced by organization in achieving its strategic objectives. Ensuring that appropriate culture and reward systems have been embedded throughout the organization.

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