Understanding Internal Controls and the COSO Framework

The video tutorial explains internal controls as policies and procedures ensuring financial reliability, operational efficiency, and legal compliance. It highlights the necessity for companies, especially public ones, to implement these controls. Examples include inventory management and secure system access. The COSO framework is introduced as a standard for evaluating internal controls, developed by various accounting organizations.

What are internal controls and what purpose do they serve?

Why are public companies required to establish a system of internal controls?

Can you provide examples of internal controls that companies might implement?

What is the COSO framework and how does it relate to internal controls?

Who are the members of the COSO committee and what is their role?