Corporate Compliance
Corporate Compliance Report
Internal control is a process that helps an organization accomplish goals through procedures in which the organization’s resources are directed, monitored, and measured. These internal controls play an important role in preventing and detecting fraud and protecting the organization’s various resources. A corporate compliance report is an organizational source to help prevent fraud, abuse, and other unethical practices and to ensure all employees and business partners are striving to meet the highest standards of ethical conduct. (Corporate Compliance, 2008). “The rise of Sarbanes-Oxley and other federal laws has brought corporate compliance to the forefront of corporate risk” (Security Solutions, 2008).
Enterprise risk management (ERM) involves the processes an organization uses to manage risk and take advantage of opportunities that relate to the achievement of the organization objectives. Identifying and addressing risks and opportunities allow an organization to both protect and create valuable opportunities for the stakeholders.
An important ERM framework is the Committee of Sponsoring Organizations of the Treadway Commission (COSO). COSO was formed to identify the factors that cause fraudulent financial reporting and make recommendations to reduce its incidence.
COSO defines ERM as “A process, effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives” (COSO, 2008).
COSO has established a common definition of internal controls, standards, and criteria which organizations can use to assess their control systems. The COSO framework consists of eight interrelated components that provide a framework for describing...
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