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Responsibilities for internal control within an organization

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Briefly describe the responsibilities each of the following groups of people has regarding internal control: Management, the board of directors, internal auditors, others in the organization.

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Solution Summary

In a 483 word response, the subject of internal control within an organzation is fully discussed including the purposes, the development and the ongoing monitoring of the system of internal control.

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To review a definition and purpose for internal control:

What is internal control?

"The auditor's definition of internal control is a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives..." COSO www.coso.org

The stated purposes for internal control procedures are
1. To produce reliable financial statements,
2. To comply with laws and regulations
3. To have effective and efficient operations
4. To safeguard assets

Responsibilities of:

Board of Directors

It is the responsibility of the Board of Directors to cause a system of internal controls to be developed and monitored that will accomplish the stated purposes above. Some of the PCAOB rules and ...

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