In Internal Control – Integrated Framework (the COSO Framework), the Committee of Sponsoring Organizations (COSO) defines internal control as the process put in place by an entity’s board of directors, management, and other personnel. It is designed to provide reasonable assurance that:
the entity has accurate and reliable reporting (both financial and non-financial);
the entity complies with applicable laws and regulations, contracts, and grant agreements; and
management’s objectives are met regarding the effectiveness and efficiency of operations.
Management, the board,