MGMT 136 Lecture Notes - Lecture 13: Cobit, Internal Control, Financial Statement
Document Summary
Chapter 13: introduction to the internal control systems. Coso: committee of sponsoring organizations of the treadway commission. Cobit: control objective for information and related technology. Definition: policies, plans, and procedures implemented to protect a firms assets and ensure accuracy and completeness of financial information. Coso framework: widely used to organize and evaluate corporate governance structure and to design, implement, and monitor internal controls. Individuals requiring reasonable assurance: board of directors, management. Provides reasonable assurance: effectiveness and efficiency of operations, reliability of financial reporting, protection of assets, compliance with laws. Sarbanes-oxley: management is responsible for establishing and maintaining adequate internal control structure. Corporate officers must attest to effectiveness and completeness of internal controls making them personally liable. Corporate governance: managing an organization in a fair, transparent and accountable manner to protect the interests of stakeholders. Check accuracy and reliability of accounting data. Signature plates kept under lock and key: prevent unauthorized use.
