This model was basically implemented in order to improve upon the effectiveness and efficiency of organizational operations, increase the credibility and reliability of financial information as well as insuring compliance with regulatory laws and regulations. The Committee aimed to achieve above by implementing a uniform set of standards which provided best practices to be used in order to create an environment of internal control which involve board of directors and higher management of the firms so that the potential risk elements associated with weak internal controls can be effectively controlled.
This report will outline a plan to implement the enterprise risk management in Apple Computers. This plan will however, be based on the recommendations of COSO in order to ensure compliance with the model.
1) Control Environment which comprises of elements such as integrity and ethical values, commitment to competence, board of directors and audit committees, Management's Philosophy and operating style, Organizational structure etc.
COSO model on internal controls roughly covers above parameters an...
4) Information and Communication includes quality of information
5) Monitoring includes On-going monitoring, Separate Evaluation as well as reporting deficiencies.
COSO model on internal controls roughly covers above parameters and attempt to outline different policies and procedures which must be adopted in order to effectively monitor and manage internal control environment within the organization. It is also important to understand that the firms may not need to implement the whole document verbatim however the same may have studied and customized to suit the organizational needs and structure while at the same time keeping the real essence of the model intact.
The above mentioned components also work to produce a combine impact on implementing a better and more efficient internal control environment within an organization and laid the foundations for the development of systems and procedures which ensure that the organization not only meet the requirements of the model but also put in place a systematic environment within the organization which ensure transparency within different functional and operational areas of the organization.
The above prelude suggested that the COSO was active in implementing effective internal controls within the organizations however as the complexities of the business grew, COSO developed a separate framework for enterprise risk management for organizations. According to COSO, an enterprise risk management is "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