COSO - Integrated Internal Control Framework

COSO CONTROL COMPONENT: CONTROL ACTIVITIES

COSO CONTROL OBJECTIVE: OPERATIONS - Revenue - Accuracy, Completeness and Disclosures.
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL

Control Objectives:
1) Ensure that all sales are correctly journalized, summarized and posted to the correct accounts.
2) Ensure that sales are not recorded in twice.
3) Ensure that invoice amount should be of correct amount.
4) Ensure that the transactions have been recorded in the correct period.
5) Ensure that all transactions are properly classified in accounts

Control Objective Level of Control

COSO Princple #
Ref. Responsibility Classification

1.1

Preventive Controls
1.2 Activity Level 10

1.3 Monitoring Control

2.1
Preventive Controls
2.2
Activity Level 10
Control Objective Level of Control
COSO Princple #
Ref. Responsibility Classification
Activity Level 10

2.3 Monitoring Control

Control Objective Level of Control
COSO Princple #
Ref. Responsibility Classification

3.1
Preventive Controls
Activity Level 10
3.2

3.3 Monitoring Control

4.1

4.2 Activity Level Preventive Controls 10

5.1

5.2 Activity Level Preventive Controls 10

5.3
mpleteness and Disclosures.
AND ACTIVITY LEVEL

the correct accounts.

INTERNAL CONTROL ACTIVITIES

Invoicing department staff will record the transaction in the correct

accounts.

Head of invoicing department will approved and check the trasaction

recording in order to ensure the correct recording.

Finance department will review the recording and cross match with the
debtors ledger.

All sales invoices should be serially numbered and properly dated.

Invoicing department will check the trasaction recording before posting.

 INTERNAL CONTROL ACTIVITIES

Head of department will periodically review the records to ensure that

invoice should not be recorded twice.
 INTERNAL CONTROL ACTIVITIES

Invoicing department will prepare the invoice by refereing to the Authorized

price list or proper authorized discount approved by the Senior
management.

Authorized person will review the invoice amount with the price list and will
sign the invoice for approval.

Finance department should periodically perform a reconciliation to review

the invoice number, date and prices are accurately recorded.

All Delivery note or Goods Despatch Notes will be forwarded daily to the
invoicing department.

Invoicing department will segregate the GDNs according to the relevent

period

Finance personnel will review the proper recording of invoices in the

correct period.

Every product or services must have different codes in order to diffrentiate

from other.

Finance department will review the Chart of Accounts for appropriateness

and updation where necessary.

Finance department will properly disclose the Revenue amount and

Revenue recognation policy in the Financial Statements .