The Erm Framework Is A Broader Version Of The Framework Essay

1138 Words Aug 18th, 2016 5 Pages
The COSO ERM framework is a broader version of the earlier framework and stated that that the categories of objectives should be one that follows (a) strategic objectives: which are goals aligning with the company’s mission/vision (b) Operational objective which imbeds performance and productivity (c) effective internal and external reporting, financial and non-financial (d) compliance with applicable laws and regulation. The COSO framework does not only reflect the assessment of hard controls such as authorization, supervisory and segregation of duties, but also soft controls like the competence and professionalism of employees, integrity and ethical values of staff, the philosophy and operating style of management, and the efficiency of communication. The monitoring of these soft controls (contained within the control activities and control environment components) and evaluation of the effectiveness of control system is undertaken via internal audit. Internal audit efficiently communicates information on risk and control in the organisation as well as manages the activities of and shares information among all the cornerstones of corporate governance (audit committee, management, external audit and internal auditors). Internal audit determines the degree to which management has put in place satisfactory condition to determine if objectives have been met. External audit gives independent and objective opinion on the financial statement and also provide useful information…

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