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Answered 2009-08-13 19:16:16

There are actually four internal control objectives of financial reporting. They are 1) Control Environment 2) Risk Assessment 3) Information and Communication Systems 4) Monitoring. These internal control objectives help aid in presenting financial statements that are free of material misstatements. But just because internal control measures are implemented, doesn't mean people cannot circumvent those controls.

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What is the difference between coso and coco model?

COCO focuses on the achievement of objectives and defines internal control as the elements of an organization that taken together support the achievement of these objectives. COCO focuses on the reliability of internal and external reporting. On the other hand COSO defines internal control as the process affected by an entity's Board of Directors, management and personal designed to provide reasonable assurance regarding the achievement of objective. COSO focuses on the reliability of financial reporting.

What is the purpose of the reports required by Section 404 of the Sarbanes-Oxley Act?

"The Company must report on internal controls over its financial reporting. Four key elements must be included in this report:Statement of Responsibility by Company Management (the CEO and CFO) for establishing and maintaining an adequate internal control structure and procedures for financial reporting.Statement identifying the framework used by management to evaluate the effectiveness of the Company's internal control over financial reportingManagement's Assessment of the effectiveness of Internal Controls over financial reportingAttestation by the company's external auditor on Management's assessment of the effectiveness of the company's internal controls and procedures for financial reporting."

Objectives of an internal control system?

An internal control system aides in ensuring financial statements are free from material misrepresentation and assets are sufficiently protected from misappropriation.

How may the success of internal control systems be measured?

Internal control would be judged as effective if its components are present and function effectively for operations, financial reporting, and compliance.

What is the mandate of external auditors?

external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)

What actions does the Canadian Institute of Chartered Accountants' Criteria of Control define as essential to internal control?

These actions, which contribute to the achievement of the organization's objectives, center around: Effectiveness and efficiency of operations; Reliability of internal and external reporting; Compliance with applicable laws

What does internal control evaluation entail?

Internal control evaluation involves everything management does to control the organization in the effort to achieve its objectives

What are the components of control environment in financial reporting?

there are 3 component of financial environment. there are financial manager, financial markets and investors ( including creditor).

What is the third interrelated component of internal control?

Control activities that are policies and procedures to ensure that management objectives are carried out.

What is internal control system?

Internal control systems are control procedures put in place by the management of an organisation to ensure efficient and effective operation of her activities, so as to meet the organisation's objectives.

The objectives of internal control are to?

Internal control serve as alert systems for businesses. Once they have established triggers, they can operate their business knowing they won't have too many mistakes with internal controls in place.

What are contained in the reports required by Section 404 of the Sarbanes-Oxley Act?

These two reports require management and the independent auditor of public companies to assess and report on the effectiveness of the company's internal control over financial reporting.

What are some topics for an accounting project?

Some topics for an accounting project include the evaluation of internal control system, and the impact of different methods of depreciation. The effects of financial accounting reporting on business management can also be an accounting project topic.

What is the meaning of financial statement level risk?

Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.

Is bank statements considered as bank reconciliation statement?

All of the following requirements about internal controls were enacted under the Sarbanes- Oxley Act except; independent outside auditors must attest to the level of internal control. independent outside auditors must eliminate redundant internal controls. companies must develop sound internal controls over financial reporting. companies must continually assess the functionality of internal controls.

What are the objectives of Performance audits?

Among objectives are those relating to program effectiveness, economy and efficiency in the use of resources, internal control, extent of compliance with legal requirements and policies, and prospective analyses

Define financial system?

Financial system is the processes and procedures used by a firm's management to exercise financial control and accountability. These measures include ecording, verification and timely reporting of transactions that affect revenues, expenditures, assets and liabilities.

What is cost accounting and its nature and scope?

Cost accounting is the internal reporting system. It includes cost recording and reporting and cost measurement or estimation. In addition, it includes cost planning, cost control, and cost analysis.

What is required of an audit?

the public accountant obtain an understanding of internal control, assess internal control, assess fraud risk, and obtain corroborating evidence to support the figures shown in the included set of financial statements.

What is the purpose of the Institute of Internal Auditors' internal audit function?

The internal audit function is to ensure that an organization meets its objectives through a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance

Difference between internal audit and internal control systems?

Distinguish between internal audit and internal control.

How may management's responsibility toward effective internal control systems be described?

top management at a publicly owned organization will include in the organization's annual financial report to the shareholders a statement indicating that management has established a system of internal control

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