Internal controls are often categorized using the COSO Internal Control-Integrated Framework. In the following table, Column 1 shows the COSO internal control objectives and components, and Column 2 lists examples of internal controls Column 1: COSO IC

Objectives or IC

Components

Column 2: Controls Implemented For Firm ABC

A. Operations

1. The executive team meets quarterly to review all business risks (including the potential for fraud), implements risk responses, and manages risk, including making changes to the system of internal control.

B. Risk assessment

2. The executive team meets each month to review the monthly financial statements and accounting ratios provided by the controller and approved by the CFO. The main objective of this review is to see whether the firm has met operational and financial performance goals.

C. Monitoring

3. The employee who performs bank reconciliations is someone other than the employees who handle cash and generate payments from the firm.

D. Information and communication

4. Management implemented a code of ethics, which includes policies on conflicts of interest. All employees, including executives, electronically sign an acknowledgment that they have read, understand, and agree to abide by the code.

E. Compliance

5. Management implemented continuous monitoring over the call center to confirm that the call center answers the calls in a timely manner.

Firm ABC 1. 2. 3. 4. 5. 6. 7. 8. Internal Control Objectives Operations Operations and reporting objectives Operations Compliance Operations Compliance Comoliance Ooerations. reoortine and comoliance obiectives Internal Control Component Risk assessment Monitoring Operations Combliance Monitoring Control environment Control environment Comoliance