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COSO helps to emphasize the understanding of a good internal control system and provides guidelines for establishing criteria to assess the adequacy and effectiveness of a companies internal control system.
Importance of Internal Controls
Effective internal controls are a critical component to the foundation of a safe, sound and successful organization and function at different levels of effectiveness...
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An effective internal control system is one which provides reasonable protection of assets, reliability of financial information, and compliance with laws and regulations. Additionally, a properly designed and consistently enforced internal control system helps the organization not only achieve their goals and mission, but also helps the organization promote more effective operations, safeguards resources and reduces the possibility of asset loss...
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