Internal tames, as we knows in accounting and auditing theory, are the steps that an entity takes to provide conjectural sureness that the entitys objectives are achieved through effective and cost-efficient operations, real financial reporting and compliance with applicable laws and regulations. There is a widely-use framework of internal control under a perpetration named Committee of Sponsoring Organizations of the Treatway Commission (COSO). COSO defines five internal control components, i.e. control environment, risk assessment, information and communication, control activities, and monitoring. coer environment is a step which is influencing the control consciousness of the people in an entity. It is the understructure for all other components of internal control. Risk assessment is a step of identification and analysis of relevant risks to the achievement of objectives, forming a basis for how the risks should be managed. Information and communication are the processes that aliment the identification, capture, and exchange of information in a form and eon frame that enable people to carry out their responsibilities. Control activities are the steps in making the policies and procedures that help fasten management directives are carried out.
Monitoring is a process used to assess the quality of internal control performance over time.
The COSO internal control framework is also used in a state governance, such as state government of Indonesia. In Indonesia, there is an act regulating internal control, that is to say Governments System of Internal Control (PP 60/2008). This act defines that internal control is the integral process on the actions and activities undertaken continuously by the leadership and the entire employees to provide reasonable assurance for the achievement of organizational objectives through effective and efficient activities, the reliability of financial report, the security of state assets, and compliance...If you want to pay back a full essay, order it on our website: Orderessay
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