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Management’s Fraud-Related Responsibilities - Coggle Diagram
Management’s Fraud-Related Responsibilities
Primary responsibility
Setting the organization’s ethical tone and reinforcing an anti-fraud culture
Demonstrating that fraud will not be tolerated at any level
Designing, implementing, overseeing, and ensuring the effectiveness of anti fraud program
Responding to instances of fraud appropriately
Management’s Responsibility for Internal Controls
Ensure that the proper internal controls are in place to prevent and detect fraud.
COSO Internal Control—Integrated Framework
Components of IC
Control activities
policies and procedures that enforce management directives intended to mitigate risk
Information and communication
Exchange of information in a way that allows employees to carryout their internal control responsibilities.
Risk assessment
Involves the identification and assessment of the risks
Monitoring
process that assesses the effectiveness of a control system over time
Control environment
foundation for the internal control system
Established by the directors and senior management
Internal Control
: Internal control is a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.
Reporting
reporting of financial and nonfinancial information to the internal and external parties.
Compliance
Adherence to the laws and regulation
Operational
effectiveness and efficiency of the organization's operations