Internal controls

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COSO stands for ¡§Committee of Sponsoring Organization¡¨ is voluntary private sector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls and corporate governance. A nonprofit commission that in 1992 established a common definition of internal control and created a framework for evaluating the effectiveness of internal controls.

COSO Internal Control ¡V Integrated Framework defines internal control as a ¡§Process¡¨ to achieve the following objectives

„« Effectiveness and efficiency of operations;
„« Reliability of financial reporting;
„« Compliance with applicable laws and regulations;

The COSO framework views internal controls as consisting of the following five interrelated components
A). Control Environment;
B). Risk Assessment;
C). Control Activities;
D). Information and Communication;
E). Monitoring;
for further detail please visit
www.coso.org