What are the key features of the COSO internal control
framework?
The key features of the COSO internal control framework include the control environment, risk assessment, control activities, information and communication, and monitoring activities.
Explanation
Key Features of COSO Internal Control Framework:
The COSO internal control framework has five key features:
1. Control Environment: The organization's overall attitude and climate regarding internal control.
2. Risk Assessment: Identifying, assessing, and responding to risks that could affect the achievement of objectives.
3. Control Activities: Policies and procedures designed to ensure that management's directives are carried out effectively.
4. Information and Communication: Ensuring relevant information is identified, captured, and communicated.
5. Monitoring Activities: Assessing the quality of internal control performance over time.
Objectives and Application of Physical and IT Control Activities:
Physical control activities aim to protect assets and prevent physical harm. Examples include security guards, locks, and surveillance cameras. IT control activities ensure the integrity, availability, and confidentiality of information systems. Examples include access controls, backups, and encryption.