This post addresses COSO internal controls & related issues.
There are different internal control models. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) model is one that is widely accepted by companies in the United States. This model is discussed in Hunton, Bryant, and Bagranoff. Please review each component and share your thoughts with examples.
“Pricing is a very important factor, because information systems are supported to be more efficient and if the system costs more than the company gains over the long-term the system can be a failure .” is right on target. It also important for a company to make sure whether it is worth the effort before it embarks on a project.
To build on the topic I raised in a previous post (above), Internal Controls are one of the most important components of an Accounting Information System. Implementing Internal Controls involves evaluating the expected costs and the expected benefits. Bagradoff, Simikin, and Strand illustrate a cost-benefit analysis of payroll validation control procedure.
Share your organization’s experience concerning components considered during cost-benefit analyses of similar control procedures?