COSO Model for Internal Control (II)

Abstract

The main purpose of internal control is to provide reasonable assurance regarding the achievement of the entity’s general objectives (regardless of whether the entity is a trading company or not). A core prerequisite of an effective internal control is to have clear objectives set by the company’s management. Two internal control models have gained international recognition: the COSO Model and the CoCo Model. This article discusses the former.

Keywords

• control environment
• risk assessment
• control activities
• information
• communication
• monitoring