Winnie M.

Villaceran
BSAT 4A
1. What is the purpose of internal control model?
The internal control model is a shield that protects the firms asset
from numerous undesirable events that bombard the organization.
2. What are the two internal control models can you recommend?
The two internal control models that I can recommend are PDC Model
and COSO Internal Control Framewrok.
3. Which internal control model do you prefer to use? Why?
The intern control model I prefer to use is the COSO Internal Control
Framework; it is like a step by step process in identifying risk. It has 5
components; first, control environment; it sets the tone of the organization
and influences the control awareness of management and employees.
Second, risk assessment, to identify, analyze and manage risk. Third,
monitoring, to implement internal control design and asses operation. Fourth,
control activities, these are the policies and procedures used to take an
action to organizations identified risk. And lastly, physical control, to update
accounts.
4. What model was recommended by SEC? What model was endorsed by
PCAOB?
The model recommended by SEC was COSO. The model endorsed by
PCAOB was COSO serves as the framework for control assessment.
5. What are the two control activities can you recommend? Which control
activities do you prefer to use? Why?
The two control activities that I can recommend are Preventive Control
and Detective Control. The control activity that I prefer to us is Preventive
Control because in this control, early signs of risks are reduced into a
tolerable level. It is better to use Preventive Control because it is easier to
prevent a problem than fix the problem.