Explain how coso framework can be applied in a computerised Essay

Explain how coso framework can be applied in a computerised environment - Essay ExampleCOSO is an cozy auditing standard. Internal control activities overwhelm each(prenominal) procedures required for ensuring financial statements that are true and correct, not tainted with errors or frauds. The COSO framework helps entities ameliorate the management of the economy and efficiency of business operations (Cascarino, 2012). Control Activities Control activities focus on ensuring all management policies and directives are implemented. The control activities include gathering valid and relevant data. Data pertains to the competitors, economy, and regulatory measurement compliance. Management uses the control activities to reduce the effects of risks (Regan, 2004). Policies and Procedures. Management responsibilities include the implementation of the COSO Frameworks home(a) control policies and procedures. The aspects focus on being aware(predicate) of any possible operational risks . Being aware includes pinpointing current and future business and other computerised environment risks. Consequently, management should focus the COSO Framework on firmness of purpose current and future risks that crop up during each business operation. For example, policies and procedures include requiring the capitaliers to issue official pass for each computer generated sales activity. The official receipts are evidences of the days total generated cash collections. The computerised printout of a days total sales should include the official receipts, or purchase orderliness forms. The store personnel must ensure the physical count of store or office supplies is gibe to the quantity of each supply type shown in the computerised database list (Pfister, 2009). Security (application and Network). The COSO Frameworks internal control activities require that all individuals must use passwords in order to prevent the un authorise persons from viewing, adding, or deleting the compu terised database. Likewise, security guards and other company personnel shall prevent the entry of unauthorised persons into confidential computerised environments. For example, alone the authorised inventory personnel cannot enter and change the details of the inventory subdivisions computersied inventory database. Likewise, only authorised employees are allowed to open, append and edit the accounting database. The Information Technology department allows authorised employees to irritate certain databases such as the inventory and receivables databases. Lastly, the company should affix CCTV cameras on all floors, offices, rooms, entrances, and exits within the computerised entities premise (Moeller, 2011). Further, the COSO Frameworks internal control activities incorporate a computerised generation of assigned performances. The computerised performance results give help management implement remedial measures. Remedial measures are used to correct lackluster performances. For e xample, the computerised hide indicating a sales person generated low sales performance will persuade management to make up the advertising budgets (Moeller, 2011). Further, management must ensure that segregation of computerised database access is implemented. For example, the cashier cannot access the accounting departments database. Likewise, the accounting department personnel cannot access the inventory dep