Public Directory : Larry's Audit Q&A Blog
Internal Control is like a Pie
(Internal Controls)
We recognize a pie because it has four parts - topping, filling, crust, and stuff on top. If all four are not there, it is not a pie (maybe its pudding, or bread, or something, but it's not a pie).
Internal Control is also like a pie - all the parts have to be present to have internal control according to COSO. The environment, the objectives and risk assessment, the control activities, and the monitoring, all four supported by information and communications. They all have to be there and working, or else it is not internal control. Maybe it is clear objectives, or good communications, or identification of risks, but if we use the COSO definition, it takes ALL THE COMPONENTS to be internal control.
 

 

 
Without all the Components, it's not Internal Control!
Created: Nov 12, 2008 at 11:49 AM.  Changed: Nov 12, 2008 at 12:06 PM

 
 

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