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ACCA Strategic Professional · Strategic Business Leader · Management and internal control systems

Kestrel Logistics' board wants a framework for designing and assessing internal control across the whole organisation, covering a control environment, risk assessment, control activities, information and communication, and monitoring. Which framework does this describe?

This is the COSO internal control framework. Its five components are control environment, risk assessment, control activities, information and communication, and monitoring, which together provide a structure for designing and evaluating internal control across an organisation.

  1. AThe COSO internal control frameworkCorrect
  2. BThe Balanced Scorecard
  3. CThe McKinsey 7S model
  4. DKotter's eight-step model

Explanation

The five components listed (control environment, risk assessment, control activities, information and communication, monitoring) are the components of the COSO internal control integrated framework. The Balanced Scorecard measures performance and the other two address organisational alignment and change.

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