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Question: the treadway commission was concerned about the fraudulent financial reporting...

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The Treadway Commission was concerned about the fraudulent financial reporting that was occurring in the United States. Yet, numerous significant instances of fraudulent financial reporting occurred after publication of the COSO report. In the context of the five components of internal control cited by the COSO report, discuss what appears to have gone wrong in own words. (Please Note: Position and exceptions, if any, are clearly stated. Organization of the argument is completely and clearly outlined and implemented. Research selected is highly relevant to the argument, is presented accurately and completely – the method, results, and implications are all presented accurately; Theory is relevant, accurately described and all relevant components are included; relationship between research and theory is clearly articulated and accurate. Conclusion is clearly stated and connections to the research and position are clear and relevant. The underlying logic is explicit. Paper is coherently organized and the logic is easy to follow. There are no spelling or grammatical errors and terminology is clearly defined. Writing is clear and concise and persuasive.) See paragraphs below to assist in the assignment.

The Five Components of Internal Control The COSO report sets forth five interrelated components of control. Those components

Control Activities Control activities are the policies and procedures that help ensure management directives are carried out.

organizational goals and objectives, quantitative and qualitative operating standards, and performance measurement systems In

Monitoring Internal control systems need to be monitored - a process that assesses the quality of the systems performance ov

Control types - Operating and safeguarding; prevention and detection Individual elements of control are sometimes classified

promoting the health of the citzenry. The monitoring procedures established by the top manager-operating controlsthus would g

Many controls described in this book are operating-type controls because they relate to the effective and efficient accomplis

Safeguarding-type controls fall into these broad areas: Procedures for appropriate documentation or approval to prevent unaut

As discussed in the next section on Reasonable Assurance, an internal control system cannot provide absolute assurance that

accomplished. For example, you cannot be absolutely sure, no matter how good your internal control system may be, that all pi

Limitations on Internal Control Monitoring the effectiveness of an internal control system should be a continuous process on

the effectiveness of the controls in place, taking into consideration the costs and benefits associated with those controls a

Good internal controls help to ensure that these all occur as they should. Internal control is not something ancillary or som

not do the things management does not want them to do. Internal control equals management control Much of this expanded conce

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