Question

Question 1:

One of the COSO principles of internal control requires organizations to demonstrate a commitment to attract,develop, and retain competent individuals in alignment with objectives. Discuss how this can be done.

Question 2 :

What are the three types of law that are relevant to auditors’ legal liability? Explain the causes of legal action under each type.

Answer 1

Q 1}This Principle of hiring and retaining the competent employees is focused on the main principle of doing the compliance required. This need of the company is projected in the objective of the company to setting up compliance policies and procedures. After this the automatic step would be to evaluate the policies and procedures that have been set up by the company in order to evaluate its effectiveness and that any proof or evidence of the deficiencies and shortcomings would be attended to. This Principle when extended to the human aspect of the compliance program leads to the company focusing on attracting , hiring , developing and then also retaining those selected competent employees in the compliance aspect of this function. The company must also focus on the keeping in place of a succession plan which should be clearly evident. This is done by the companies in order to keep those employees who are competent and thereby in alignment and in tandem with the objectives of the company.