Getting in Control of Internal Control
My family bought a new car that is bigger, more powerful and as fuel efficient as our old one. Yet when winter socked us with two feet of snow earlier this year, we still got stuck trying to get up our driveway. The big, new, powerful Q7 was not the silver bullet for a safe arrival we had expected.
Why is it we always hear of how buying X can help us achieve Y, but we seldom hear of how buying X will help us achieve Y, but will not help us with Z?
COSO states in one particular report that internal control “is not a panacea.” While COSO defines internal control as a process affected by three levels of personnel, designed to provide reasonable assurance in achieving objectives in three categories, it also mentions two beliefs that are unwarranted.
Unwarranted belief number one: “internal control can ensure an entity’s success.”
This is an unwarranted belief as market conditions, changes in government regulations, and incompetent employees cannot be changed by internal control.
Read more for belief number two and a link to the report >>>
Given tomorrow is Tax Day in the US, here's a way to lighten things up with your favorite colleague.
Why are accountants always so calm, composed and methodical? Read more for the punchline >>>