Question

Describe the control activities in the COSO framework. Why are these control activities important for most companies? Be specific.

Answer 1

Control activities are performed at all levels of the entity, at various stages within business processes, and over the technology environment. They may be preventive or detective in nature and may encompass a range of manual and automated activities such as authorizations and approvals, verifications, reconciliations, and busi­ness performance reviews.Importance of control activities

1. The organization selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels.

2.     The organization selects and develops general control activities over technology to support the achievement of objectives.

3.     The organization deploys control activities through policies that establish what is expected and in procedures that put policies into action.