What Are the Five Internal Control Components Described in the COSO

question 37

Essay

What are the five internal control components described in the COSO framework?

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Definitions:

Stock Discrepancies

Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.

Periodic Inventories

An inventory system where the inventory count is conducted at specific intervals to determine the cost of goods sold and ending inventory levels.

Closing Inventories

The total value of unsold goods and materials that a company holds at the end of its financial year, which is recorded as a current asset in the balance sheet.

Product Obsolescence

Occurs when a product becomes outdated and is no longer needed or wanted by consumers, often due to technological advances.