COSO: Internal Control Integrated Framework

An overview of the COSO framework for internal controls, and some of the major red flags it addresses.

1. COSO: Internal Control - Integrated Framework Control Environment Risk Assessment Control Activities Information & Communications Monitoring

2. Red Flags

3. Six Categories of Red Flags Auditors Look For: Unexplained accounting anomalies Exploited internal controls weaknesses Identified analytical anomalies Observed extravagant lifestyle Observed unusual behaviors Anomalies communicated via tips and complaints.

4. Withholding information Unexpected fee arrangements Unauthorized Vendors Business w Personal Friends Missing Documentation Unusual requests/ instructions Illogical business case Parallel Systems Unwillingness to relinquish control

5. Six Categories of Red Flags Auditors Look For: Unexplained accounting anomalies Exploited internal controls weaknesses Identified analytical anomalies Observed extravagant lifestyle Observed unusual behaviors Anomalies communicated via tips and complaints.