Questionnaire as a Tool for Assessment of Interanal Control System against Coso Internal Control – Integrated Framework

Karina Nazarova; Mariia Nezhyva; Konstantin Neviadomski; Polina Kyrushko; Nadiia Bondar

doi:10.18535/ijsrm/v9i11.em06

Abstract

The article deals with the scientific and practical aspects of the transparency of internal control. The urgency of the topic of this article is caused by the need for analysis and the search for a mechanism for assessing the effectiveness of conducting internal control at the enterprise. The article examines the imperatives of internal control, as well as substantiates the main conceptual foundations of the organization of internal control. The article proposes an approach to assessment of enterprise internal control system against the COSO – Internal Control – Integrated Framework.

References

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Landsittel D (2013) COSO Internal Control – Integrated Framework/ Executive Summary. https://www.coso.org/documents/990025p-executive-summary-final-may20.pdfGoogle Scholar ↗
Anderson D, Eubanks G (2015) Leveraging COSO Across The Three Lines of Defense by The Institute of Internal Auditors. https://www.coso.org/documents/coso-2015-3lod.pdfGoogle Scholar ↗
Abdo M, Feghali K (2017) COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency – an exploratory approach. Middle East Journal of Management 4 (2): 150-170.Google Scholar ↗
Addy N, Berglund N (2020) Determinants of Timely Adoption of the 2013 COSO Integrated Framework. Journal of Information Systems 34 (1): 1-20. https://doi.org/10.2308/isys-52378DOI ↗Google Scholar ↗
Balakrishnan R, Matsumura E, Ramamoorti S (2019) Finding Common Ground: COSO's Control Frameworks and the Levers of Control. Journal of Management Accounting Research 31 (1): 63-83. https://doi.org/10.2308/jmar-51891DOI ↗Google Scholar ↗
Chan K, Chen Y, Liu B (2021) The Linear and Non-Linear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework. European Accounting Review 30 (4): 733-765. https://doi.org/10.1080/09638180.2020.1776626DOI ↗Google Scholar ↗
Chen H, Yang D, Zhang X, Zhou N (2020) The Moderating Role of Internal Control in Tax Avoidance: Evidence from a COSO-Based Internal Control Index in China. Journal of the American Taxation Association 42 (1): 23-55. https://doi.org/10.2308/atax-52408DOI ↗Google Scholar ↗
Custodio J, Fukuro T, Pavao J, Ferreira J (2019) Analysis of internal control in the warehouse's sector of a transportation company in the light of the COSO methodology. Reunir-Revista de Administracao Contabilidade e Sustentabilidade 9 (2): 1-10.Google Scholar ↗
Heong A, Teng Y (2018) COSO enterprise risk management: small-medium enterprises evidence. Asia-Pacific Management Accounting Journal 13 (2): 83-111.Google Scholar ↗
Prewett K, Terry A (2018) COSO's Updated Enterprise Risk Management FrameworkA Quest For Depth And Clarity. Journal of Corporate Accounting and Finance 29 (3): 16-23. https://doi.org/10.1002/jcaf.22346DOI ↗Google Scholar ↗
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Udeh I (2019) Observed effectiveness of the COSO 2013 framework. Journal of Accounting and Organizational Change 16 (1): 31-45. https://doi.org/10.1108/JAOC-07-2018-0064DOI ↗Google Scholar ↗
Vincent N, Barkhi R (2021) Evaluating Blockchain Using COSO. Current Issues In Auditing 15 (1): 57-71. https://doi.org/10.2308/CIIA-2019-509DOI ↗Google Scholar ↗
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Antonyuk O (2020) Risk-oriented approach in financial control as an element of management of public organizations. Bulletin of the National University of Water Management and Environmental Sciences. Economic sciences 3: 3-13. http://nbuv.gov.ua/UJRN/Vnuvgp_ekon_2020_3_3Google Scholar ↗
Dorosh N, Jacyk T (2015) Integrated model of internal control of the enterprise COSOERM: adaptation of foreign experience in Ukraine. Economic analysis 22 (2): 68-74. http://nbuv.gov.ua/UJRN/ecan_2015_22(2)__11Google Scholar ↗
Ilyashenko O (2013) Prerequisites for the formation of a modern system of internal control based on the model of risk-oriented control COSO. Economic strategy and prospects for the development of trade and services 1 (2): 25-32. http://nbuv.gov.ua/UJRN/esprstp_2013_1(2)__6Google Scholar ↗
Rahman A, Al-Dhaimesh O (2018)The effect of applying COSO-ERM model on reducing fraudulent financial reporting of commercial banks in Jordan. Banks & bank systems 13 (2): 107-115. http://nbuv.gov.ua/UJRN/banks_2018_13_2_11Google Scholar ↗
Dominova I (2019) Internal control of banks based on the model of "four lines of protection": features and benefits. Accounting and Finance 2: 118-123. http://nbuv.gov.ua/UJRN/Oif_apk_2019_2_16Google Scholar ↗
Kashperska A (2019) Technological tools for modeling the system of internal control of restaurants. Business Inform 8: 143-149. http://nbuv.gov.ua/UJRN/binf_2019_8_21Google Scholar ↗

[refR-1] On Prevention and Counteraction to Legalization (Laundering) of Criminal Proceeds, Terrorist Financing, Financing of Proliferation of Weapons of Mass Destruction: The Law of Ukraine, 28 April 2020. https://zakon.rada.gov.ua/laws/show/361-20#TextGoogle Scholar ↗

[refR-2] On Organization of Internal Control System in Ukrainian Banks and Banking Groups: Regulation approved by NBU Board Resolution, No. 88, 2 July 2019. https://zakon.rada.gov.ua/laws/show/v0088500-19#TextGoogle Scholar ↗

[refR-3] On Ratification of the Agreement between the Government of Ukraine and the Government of the United States of America for Improving the Enforcement of Tax Rules and the Application of the Provisions of the US Foreign Account Tax Requirements Act (FATCA): The Law Of Ukraine, 29 October 2019. https://zakon.rada.gov.ua/laws/show/229-20#TextGoogle Scholar ↗

[refR-4] Landsittel D (2013) COSO Internal Control – Integrated Framework/ Executive Summary. https://www.coso.org/documents/990025p-executive-summary-final-may20.pdfGoogle Scholar ↗

[refR-5] Anderson D, Eubanks G (2015) Leveraging COSO Across The Three Lines of Defense by The Institute of Internal Auditors. https://www.coso.org/documents/coso-2015-3lod.pdfGoogle Scholar ↗

[refR-6] Abdo M, Feghali K (2017) COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency – an exploratory approach. Middle East Journal of Management 4 (2): 150-170.Google Scholar ↗

[refR-7] Addy N, Berglund N (2020) Determinants of Timely Adoption of the 2013 COSO Integrated Framework. Journal of Information Systems 34 (1): 1-20. https://doi.org/10.2308/isys-52378DOI ↗Google Scholar ↗

[refR-8] Balakrishnan R, Matsumura E, Ramamoorti S (2019) Finding Common Ground: COSO's Control Frameworks and the Levers of Control. Journal of Management Accounting Research 31 (1): 63-83. https://doi.org/10.2308/jmar-51891DOI ↗Google Scholar ↗

[refR-9] Chan K, Chen Y, Liu B (2021) The Linear and Non-Linear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework. European Accounting Review 30 (4): 733-765. https://doi.org/10.1080/09638180.2020.1776626DOI ↗Google Scholar ↗

[refR-10] Chen H, Yang D, Zhang X, Zhou N (2020) The Moderating Role of Internal Control in Tax Avoidance: Evidence from a COSO-Based Internal Control Index in China. Journal of the American Taxation Association 42 (1): 23-55. https://doi.org/10.2308/atax-52408DOI ↗Google Scholar ↗

[refR-11] Custodio J, Fukuro T, Pavao J, Ferreira J (2019) Analysis of internal control in the warehouse's sector of a transportation company in the light of the COSO methodology. Reunir-Revista de Administracao Contabilidade e Sustentabilidade 9 (2): 1-10.Google Scholar ↗

[refR-12] Heong A, Teng Y (2018) COSO enterprise risk management: small-medium enterprises evidence. Asia-Pacific Management Accounting Journal 13 (2): 83-111.Google Scholar ↗

[refR-13] Prewett K, Terry A (2018) COSO's Updated Enterprise Risk Management FrameworkA Quest For Depth And Clarity. Journal of Corporate Accounting and Finance 29 (3): 16-23. https://doi.org/10.1002/jcaf.22346DOI ↗Google Scholar ↗

[refR-14] Tomas D, Todorovic I, Todorovic Z (2017) The COSO framework and the organization of internal audit for fighting against fraud. Casopis za Ekonomiju I Trzisne Komunikacije 7 (2): 235-251. https://doi.org/10.7251/EMC1702235TDOI ↗Google Scholar ↗

[refR-15] Udeh I (2019) Observed effectiveness of the COSO 2013 framework. Journal of Accounting and Organizational Change 16 (1): 31-45. https://doi.org/10.1108/JAOC-07-2018-0064DOI ↗Google Scholar ↗

[refR-16] Vincent N, Barkhi R (2021) Evaluating Blockchain Using COSO. Current Issues In Auditing 15 (1): 57-71. https://doi.org/10.2308/CIIA-2019-509DOI ↗Google Scholar ↗

[refR-17] Shilova T (2020) Risk-oriented approach to the generation of enterprise value. Bulletin of socio-economic research 2: 164-173. http://nbuv.gov.ua/UJRN/Vsed_2020_2_14Google Scholar ↗

[refR-18] Antonyuk O (2020) Risk-oriented approach in financial control as an element of management of public organizations. Bulletin of the National University of Water Management and Environmental Sciences. Economic sciences 3: 3-13. http://nbuv.gov.ua/UJRN/Vnuvgp_ekon_2020_3_3Google Scholar ↗

[refR-19] Dorosh N, Jacyk T (2015) Integrated model of internal control of the enterprise COSOERM: adaptation of foreign experience in Ukraine. Economic analysis 22 (2): 68-74. http://nbuv.gov.ua/UJRN/ecan_2015_22(2)__11Google Scholar ↗

[refR-20] Ilyashenko O (2013) Prerequisites for the formation of a modern system of internal control based on the model of risk-oriented control COSO. Economic strategy and prospects for the development of trade and services 1 (2): 25-32. http://nbuv.gov.ua/UJRN/esprstp_2013_1(2)__6Google Scholar ↗

[refR-21] Rahman A, Al-Dhaimesh O (2018)The effect of applying COSO-ERM model on reducing fraudulent financial reporting of commercial banks in Jordan. Banks & bank systems 13 (2): 107-115. http://nbuv.gov.ua/UJRN/banks_2018_13_2_11Google Scholar ↗

[refR-22] Dominova I (2019) Internal control of banks based on the model of "four lines of protection": features and benefits. Accounting and Finance 2: 118-123. http://nbuv.gov.ua/UJRN/Oif_apk_2019_2_16Google Scholar ↗

[refR-23] Kashperska A (2019) Technological tools for modeling the system of internal control of restaurants. Business Inform 8: 143-149. http://nbuv.gov.ua/UJRN/binf_2019_8_21Google Scholar ↗