Hi guys, I am usualy struggling on re-phrasing the WC question and using appropriate keywords. Please see below question and response, give me your feedback to improve my written communication. Thanks a lot!
Q. A client has contracted with your firm to assist in its Sarbanes-Oxley compliance project. Several members of the audit committee have requested an overview of the Committee of Sponsoring Organizations' (COSO) integrated framework. You have been asked to prepare a brief memo outlining the Committee of Sponsoring Organizations' (COSO) integrated framework, components, and management requirements.
My response:
The purpose of this memo is to address an internal control integrated framework as outlined by the Committee of Sponsoring Organizations'(COSO). In evaluating an internal control framework, we should consider the various components of an internal control and management requirements.
According to COSO, an internal control is defined as the process effected by a board of directors, management and employees to control and monitor the company to achieve its strategy and objectives. An internal control has five inter-related components including the control environment, risk assessment, control activities, information and communication, and monitoring.
The control environment sets the tone of the organization, and influence people consciousness. It is considered as the foundation of an internal control. The risk assessment component addresses the identification and mitigation of risks. The control activities, on the other hand, focuses on the appropriate procedures and control actions that will have to be taken to prevent the assessed risk.
An information and communication component refers to capturing and using of relevant information in order to exchange information for internal and external users. By sharing or exchanging of relevant information, management can make an informed decision. The monitoring component of an internal control encompasses an on-going and separate evaluation of an internal control so as to identify and address deficiencies.
The Sarbanes-Oxley Act of 2001 requires management to implement, evaluate and maintain an internal control.
Please do not hesitate to contact me if you have further questions.
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