The COSO Framework in Emerging Technology Environments: An Effective In-Class Exercise on Internal Control

Abstract

We present an in-class scenario-based exercise by which accounting information systems students learn about the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013 Framework. Students are randomly assigned to groups of three to five, and each group receives a list of 17 principles and 17 scenarios. These scenarios are based on emerging technology environments and are designed to illustrate the key ideas in each of the five components. Each group categorizes the principles and scenarios into the five components. For each scenario, students are expected to (1) review the key framework components and principles, (2) understand how each component relates to real-world implementation scenarios, and (3) identify potential internal control weaknesses and risk mitigation. Discussions are video-recorded to evaluate the in-class exercise and fine-tune subsequent exercises. Ultimately, this exercise can help students understand the COSO 2013 Framework in emerging technology environments.

Evaluating the impact of internal control systems on organizational effectiveness

“…Impact of internal control systems (Schroy, 2010;Hamdan, 2019;Taiwo et al, 2016). The findings support the postulation of researchers (Chiu & Wang, 2019;Ngari, 2017).…”

“…, 2019; Kinyua, Gakure, Gekara, & Orwa, 2015; Vu & Nga, 2022). Control environment provides discipline and structure for attaining internal control system goals and improving system quality (Chiu & Wang, 2019; Ngudu, 2014; Peterson, 2018).…”

The impact of internal control systems on the intensity of innovation and organizational performance of public sector organizations in Vietnam: the moderating role of transformational leadership

“…We used well-established scales in the literature to measure the main constructs in the proposed model. Specifically, ICS was measured using the formative scale proposed by Chiu and Wang (2019), which was developed based on the COSO framework. The scale for intensity of innovation was based on the Innobarometer 2010 survey, which was inspired by the Oslo Manual (OECD, 2005) but adapted to the public administration context (Arundel et al, 2015) and used in subsequent studies, such as the study conducted by Clausen et al (2020).…”

Internal Control and Computer Environment

“…Interna kontrola je proces koji pomaže da se osigura postizanje poslovnih ciljeva, ali i opstanak preduzeća (8). Efektivno dizajnirana, implementirana, a procenjena interna kontrola je ključna za uspeh svake organizacije, pošto slab sistem interne kontrole može dovesti do izobličenja informacija, što bi zauzvrat moglo negativno da utiče na operativnu efikasnost, pouzdanost finansijskog izveštavanja i/ili usklađenost sa propisima ili zakonima (6).…”