Evaluating accounting control systems Essay Example | Topics and Well Written Essays - 1000 words

Evaluating accounting control systems - Essay ExampleThe meaning of internal control has changed everywhere the recent years with the development of various internal control models. The coco model is one of those models. Stone creek Church in Urbana, Illinois has adopted the COCO framework model for their Internal accounting control system. The Coco model, which builds on COSO (another internal account control model) is the most user-friendly and concrete method. The COSO framework is the beginning model, which is written from the point of view that basically it makes the organizational member of the internal control be thorough who includes the manager from the standpoint of the shareholder (COSO Framework mirror symmetry 10). The COSO framework describes internal control as a procedure, influenced by an entitys management, board of directors and other workers, which is planned to provide reasonable assurance concerning the attainment of objectives. As stated the earlier Stone C reek Church in Urbana, Illinois has used the COCO framework model. The Stone Creek Church in Urbana always has to in excess of two persons to handle the cash. The money is never in one persons situation anytime for protection. ... And it protects the person and the structure. The Stone Creek Church in Urbana provides cash dispersement process. It means payment or Cash outflow of money to resolve commitments for instance interest payments for loans, operating expenses and accounts receivables throughout a particular detail so as to carry out business actions. Usually in the form of plastic money, cash, check, Electronic fund transfers and warrants. CoCo model distinguishes four coordinated elements of internal control such as containing purpose, commitment, capability and learning and monitoring. An industry that performs a childbed is directed by an understanding of the function of the task and support by ability. To execute the task well over time, the industry wants a sense of commitment. At last, the industry has to monitor task performance to develop the task process. These fundamentals of control, which contain twenty particular control criteria, are seen as the steps an industry takes to promote the right action. As mentioned earlier Stone Creek Church in Urbana, Illinois has adopted the COCO framework model. The task was to evaluate the accounting control systems of Stone Creek Church in Urbana, Illinois on the alkali of the interview of the Stone Creek manager and the attached notes on COCO framework. The Coco framework states that the organizations should be able to measure their performance in vicenary terms and should use budgets and financial statements to evaluate their performance. The Coco framework also advocates the use of qualitative measures such as target setting in found to assist the performance of a firm. In the Stone Creek Church case no quantitative measures like the setting up of budgets has been done as well as no qualitative m easures like