Identify the internal control procedures classified per (SAS78/COSO) that could prevent or detect this fraud.

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There are five components in the internal control procedures classified per SAS78/COSO) that could prevent or detect this fraud :

1. Control Environment : A control environment is a foundation for internal control and is creating a culture of ethics among the employees and the management. It lays the guidelines for control in the organization.

2. Risk Assessment: An organization must follow a risk assessment procedures for financial reporting i.e. identifying , assessing and taking measures to mitigate the risks involved.

3. Information and communication: The entity must use an efficient accounting information system which will enable it to prepare quality and reliable financial statements.

4. Monitoring: The organization must ensure that the internal controls laid out are functioning as intended and any gaps must be addressed.

5. Control activities: These include IT control and physical control activities to ensure that there are appropriate policies and procedures in place to address the identified risks.

ekkarill92 answered 3 weeks ago

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