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Overview

The COSO model defines internal control as “a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance of the achievement of objectives in the following categories:

1. a. Effectiveness and efficiency of operations.
2. b. Reliability of financial reporting
3. d. Compliance with applicable laws and regulations.

Internal control over financial reporting therefore are the controls specifically designed to address the risks of intentional or unintentional misstatements in the financial statements.

Procedure

Organisations wising to be compliant need to be practicing and utilizing the five components as stated by COSO, this supports the achievement of an entity’s mission, strategies and related business objectives.

1. 1. Control Environment – is the set of standards, processes and structures that provide the basis for carrying out Internal control across the organisation.
2. 2. Risk Assessment – Risk is any unforeseen circumstance/event that affects (positively or negatively) the planned objectives of an organisation. it involves the Identification of risks, the analysis and evaluation of the identified risks and the application of the treatment to either mitigate the risk or mine the opportunities from the Risk.
3. 3. Control Activities – control activities are the actions established through policies and procedures that help ensure that management’s directives to mitigate risks to the achievement of objectives are carried out.
4. 4. Information and Communication – communication is the continual, iterative process of providing, sharing and obtaining necessary information.
5. 5. Monitoring – ongoing monitoring, separate evaluations are used to ascertain whether each of the five components of Internal control is present and functioning. Findings are evaluated against criteria established by regulators, recognized standard setting bodies or management and the board of directors, and deficiencies are communicated to management and the board of directors as appropriate.

Mode Of Evaluation

This is usually done by Chartered Accountants, Risk Professionals, Corporate Governance certified personnel.

Processing Time

This is determined by the size of the organisation and the control processes in effect in the organisation.

Caution: Applicants are strongly advised to deal directly with registered members of the various bodies to ensure proper assessment and avoid false/improper assessment. Applicants can contact the Institute of Chartered Accountants of Nigeria (ICAN) to verify the identities of the Chartered Accountants. Should you encounter any difficulties or are unable to process your Compliance Certificate please do not hesitate to contact any of our approved Professionals by clicking here

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