The Whitlock Co. helps privately owned businesses with several aspects of financial planning and business strategies to help firms succeed and grow.
One way your privately owned business, particularly ones in the finance sector, can help themselves is by working on five components of internal controls like the ones outlined in the COSO Framework.
How can my company implement the five components of internal control listed by COSO?
Businesses should take a look at these main areas to implement the COSO Framework:
- Achieving goals in operations, reporting and/or compliance
- Continually implementing and adapting the framework across the entire organization and within departments, teams, and units
- Understanding that the framework depends on people acting on the policies
- Providing assurance to upper-level managers regarding a reasonable degree of security
What are the objectives for operations, reporting, and compliance for the COSO Framework?
For operations, strive to set performance standards that protect against fraud by focusing on the effectiveness and efficiency of your business operations.
Reporting goals should focus on internal and external reporting with regard to transparency in the data, timeliness of the reports, and the reliability of your team’s reporting habits.
Compliance goals work towards adhering to laws and regulations that your company must comply with, especially in the financial sector.
What are some tips for implementing the COSO Framework at my company?
Start with managers and supervisors. Decision-makers within your organization should assess your current internal control protocols, processes, and procedures. Does your current system meet all of your effectiveness standards?
Teach your COSO Framework to lower-level managers and employees. Not only does this show that leadership is on board, but it shows the importance of the COSO Framework to your company.
Get everyone involved. That way, they take ownership of implementing the framework at your company. Have monthly company meetings to discuss the process. Managers can have regular conversations about what people should do to implement the framework without specifically calling it out, like saying, “Hey, why don’t we try this?”
Every employee should take their role in preventing fraud seriously across the entire company. For example, owners, managers, and entry-level employees must follow anti-fraud policies without exception. Filing accurate and timely reports always helps alleviate these concerns.
Contact The Whitlock Co. for Help With Business Planning
The experienced team at The Whitlock Co. offers assistance to privately owned companies that are looking to prevent fraud through implementing the COSO Framework. We’ll also provide advice on the financial planning process for your cash flow.
Contact us to request a consultation, and we’ll start the conversation.