Professional Documents
Culture Documents
2 Internal Control
2 Internal Control
INTERNAL
CONTROL
SYSTEM
Definition According to
Committee of Sponsoring Organizations (COSO) Framework
Effectiveness
a process, effected by an and
Efficiency of
entity’s board of directors, operations
management and other
personnel, designed to
INTERNAL
provide reasonable CONTROL
assurance regarding the Compliance
with Reliability of
achievement of objectives applicable
laws and
Financial
Reporting
in the following categories: objectives
Comprises the plan of
INTERNAL organization and all coordinated
CONTROL methods and measures adopted
within a business to
Company- Process-level
wide Objectives
Objectives
Risk Managing
Identification Change
and Analysis
CONTROL ACTIVITIES
include all policies and procedures designed and implemented
to address the risks and ensure that management directives
are carried out throughout the organization to achieve the
cooperative objectives
Business Security
Continuity/ (Application
Backups and Network)
Application
Change
Management
INFORMATION AND COMMUNICATION
encompasses the methods for identifying, capturing, and
communicating pertinent information in a time frame that
enables people to carry out their responsibilities
Assessing the
quality of An effective Monitoring
System detects and
internal control remedies control
system deficiencies throughout the entire
performance internal control system.
over time.
Prepared by:
REGGIN C. SAMBAJON
Master in Cooperative Management