1-2 Activity: Risks and the COSO Framework

ACC 691 Module One Activity Guidelines and Rubric

Scenario

You are a senior accountant for Take and Make, an organization responsible for manufacturing arts and crafts supplies. Take and Make is still figuring out its internal control structure. The organization wants to expand its internal control practices pertaining to the COSO framework, specifically the control environment and control activities. Your supervisor has asked you to write an interdepartmental memo for the accounting team reminding them of the importance of using the COSO framework in developing a fraud detection strategy. Your supervisor has asked that you also explain risks that your organization might face and how internal controls can help mitigate those risks.

The skills practiced in this assignment will help to support your work in Project One.

Directions

Write an interdepartmental memo that describes the importance of the COSO framework in fraud detection and risks that an organization might face that can be mitigated by internal controls.

Specifically, you must address the following rubric criteria:

Describe the importance of using the COSO framework in building an organization’s fraud detection strategy.

Provide an exampleof how the COSO framework can be applied to the organization’s overall fraud detection strategy.

Identify risks the organization might face based on the control environment and control activities outlined in the COSO framework.

Explain internal controls the organization can implement to mitigate the risks.

Summarize the connection between risks the organization might face and the COSO framework.