Internal Control Evaluation
RA has derived an Internal Control Evaluation methodology based on the report of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Integrated Framework. COSO is a voluntary private sector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls, and corporate governance..
What is internal control
Internal control is a process affected by management and staff that is designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations
- Compliance with applicable laws and regulations
- Safeguard of assets
- Reliability of financial reporting
All levels of management are responsible for establishing internal control processes in order to achieve its objectives, to stay on course toward meeting financial goals, to minimize risk, and to more effectively deal with change.