Accounting System & Assurance

This article discusses the significance of the COSO ERM framework in effective risk management and its application in Telstra. It also explores future trends of AIS and the role of cloud computing in accounting information systems.

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Running head: ACCOUNTING SYSTEM & ASSURANCE
ACCOUNTING SYSTEM & ASSURANCE
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Table of Contents
Introduction......................................................................................................................................2
COSO ERM Model Literature Review............................................................................................2
ERM Model of Telstra under the clouding AIS..............................................................................7
Future Trends of AIS.......................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
The aspect of effective risk management is a matter of concern for any organization. This
may involve business risk, operational risk, financial risk, credit risk, managerial risk and more.
Risk is a threat to any organization though if it is able to manage it effectively then the
opportunity to utilize risk will come in the form of less or equal amount of return (Chan and
Vasarhelyi. 2018). The process of enterprise risk management is inclusive of the methodical
processes involved in seizing opportunities through managing risk and transforming them in the
form of returns. The management of risk is to tackle the uncertainty that is being present in the
market and to remove the underlying threats followed by assessing the probable likelihood of the
risk involved and the level of impact that it can render upon the organizational objectives. The
ERM framework is an effective platform for identifying the particular events that may create
barrier in the process of achieving organizational objective. Along with that, it also helps to
proactively counter the negative impacts of the risks involved in the process through determining
response maneuvers that will counter the threats and the uncertainty involved in the process
through strategizing the monitoring process of the risk involved in the business. ERM is thus an
integrated framework of risk management that is not only concerned with the risk management
process but also focuses upon internal control, strategic planning and implementation of the
monitoring procedure. The paper focuses upon the significance of the COSO ERM framework
that is being used and applied in Telstra for effective risk management and what are the probable
ventures that should be considered important in the near future.
COSO ERM Model Literature Review
According to Chan and Vasarhelyi (2018), the ERM model is an implementation and
planning based response strategy framework that aims in identifying, assessing and monitoring

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the hazards, potential threats and uncertainties involved in the business that comes out in the
form of risk associated with it. The challenge of any organization like A company is in
capitalizing the threats and uncertainties in the form of opportunity to acquire returns in a
sustainable business environment and optimize the organizational objectives. Action plans are
prepared coupled with effective response strategies that will support the potential investors,
prospective stakeholders as well as shareholders to counter the challenges involved in the
process. The COSO ERM model renders such kind of platform through which an organization
like a company is able to block the damages that may take place not only upon its resources but
also upon the reputation of the company.
In accordance with Schaltegger and Burritt (2017), a risk management resolution needs
defense-driven strategy which is both intuitive and comprehensive. The multi – layered
framework of COSO ERM proposes an all-encompassing solution that is not limited in
strategizing the risks but focuses extensively upon monitoring simultaneously with action
oriented specifications. Moreover, it helps a company to focus upon improving its internal
environment coupled with a matured contingency plan which is an important tool for identifying,
resolving and managing risk along with balancing the pay-off returns based on the amount of
risk undertaken in the process. The paper also highlights the fact that the resources that are
undertaken in the course of the action determines greatly the success of the projects. Hence, the
work culture, physical location, moral code of conduct are one of the key ingredients in
substantiating the risk aptitude of the teams within the company. It is often being identified in A
company that the though the senior management is hugely qualified yet they are not able to train
the mid-seniors and the line managers extensively. Due to this lack of ability to train the lower
order managers within the management hierarchy it is being found that the organizational risk

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associated with this breaks the contingency plan. The organizational planning and strategic
implementation through the COSO ERM framework helps the company by reducing the cost of
risk oversight rather than only allowing the team leaders to push for task completion.
According to Prasad and Green (2015), objective setting is an important aspect of
concern in case of a company and hence the organizational mission and vision is being
synchronized properly with the response strategy towards risk by using the platform of COSO
ERM. Apart from resource and monetary investments this platform helps an organization to
represent itself towards its potential clients and prospective target consumer base as a credible
firm by altering the drive of the employees of the organization towards a consumer friendly
structure. It is also identified as a key factor since it determines the level of the high risk that an
organization undertakes and the responsibilities that it accomplish in order to subjugate the risks
involved in the form of the uncertainties and threats in the market and utilize them as a token of
opportunity to accomplish organizational objectives. As opposed from an operational
perspective, potential strategies should be defined also from a strategic standpoint as it will
develop the maturity for the entire portfolios of the concerned companies.
In accordance with Lehman et al. (2014), the likelihood of risks for which the business
endeavors may spill into and the variations involved in the process accounts for the next
component of risk appetite. The ERM model helps these factors to get aligned with the overall
strategies followed by defining them for projects and portfolios of an organization which not
only helps to tackle vendor-driven situations like postponing the release of a service or product
as there may be lesser room available for errors from the end of the vendors but also accomplish
the process of assessing credentials of the vendor’s in extreme cases. Notably, the case of Enron
is an infamous example in this regard where the true performance of the company was kept

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hidden and a make-believe profitability structure were put forth in front of the investors in order
to ensure that their expectation levels due not fall. However, to reiterate such risks were not
worthy as it breaks the moral code of conduct and encourages in ethical malpractice. The paper
also highlighted the case of event identification since it is a crucial step in the process of project
identification. The positive opportunities gets differentiated from the negative payoffs from risk
through the usage of ERM since it list down them separately. It is possible because the events or
circumstances that disrupts the business proceedings are considered as project risks while events
that renders tangible values and ensures progress are considered to be opportunities. However,
developing the organizational awareness along with harnessing them to acquire opportunities and
mitigate the treats the organization should match them up with the organizational strategies as a
whole.
According to Groomer and Murthy (2018), simultaneous activity should be conducted
through continuous analysis, assessment upon inter-link risks beside strategizing and
implementing of action plans. This activity may lead to setting the objectives again and
improvising it based on resource-centric internal risks revisiting the aspects of market slowdown,
loss of brand identity and changes in the physical environment. This will incorporate the forth
element of the ERM model which is risk assessment. Sound measurement should be coupled
with accurate prioritization of the risks among which the best ones should be harnessed and the
worst ones should be mitigated as it will help in emerging the company by organizing its
tolerance level and optimizing the opportunities.
According to Dai and Vasarhelyi (2017), the response to risk is an important
measurement of the organisational tolerance and their appetite labels which advocates the
following responses for example reduce accept avoid or transfer. Notably each of the

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components are a measurement of the portfolio of risk that being stressed upon which command
the magnitude of risk as a whole as well as the components that are involved in the aspect of risk.
Ganesh pass me not be accounted independent of financial liability however the products and the
resources involved significantly open the projects of the business initiatives which the
organization undertakes. To ensure a healthy and safe environment in case of extreme market
conditions it is important to implement magnetic approach towards controlling risk prescribe
actions. The paper highlights the fact that risk response strategy should be compared with
portfolio management initiatives that leads to effective leadership and implementation of
efficient risk response maneuver.
According to Ciuhureanu (2016), the sixth element is control activities which are the
implementation of policies and regulations which ensures the responses which are being
strategized to determine the scope of the designed guidelines so that it do not exceed the
organizational control of the situation. Control is important due to the reason that every activities
that are with the organization is accompanied by human involvement and their peak.
Inappropriate gender involvement affects the production as well as the output and hence the line
manager used to negotiate with new terms with the ultimate clients. Perception main reciprocate
the communication and hence this year material judgment bias which outweighs the control of
the organizational policies. Effective training is required for nurturing managerial cement as well
as training activities which will effectively embrace the common code of ethics and internal
control will become far more realistic. It is also being put for that the 7th element is Information
and Communication using management framework where exchange of information through the
digitalized platform has minimal internal risk.

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According to Brown et al. (2018) the monitoring activities please a crucial role
commencing from the preparation of action plan as well as implementation of them based on the
requisite business framework and annual review of them in accordance with the management
system. The objective of the monitoring element is to balance between feedback and action
coupled with understanding the potential weakness and strength and synchronizing it with
respect to the assessed opportunities and threats. The people also I write about the effectiveness
of evolution and auditing which plays an important role in Annual meeting classes the diversified
portfolio and separate the risk management wings.
ERM Model of Telstra under the clouding AIS
Clouding accounting information system is an effective tool in the era of fierce brand
spoiling that takes place through the digitalized platforms. Cloud computing by the usage of
mobile application and internet platform is an important resource to strategize the business
activities specifically in companies like Telstra. Big companies have a huge amount of data we
privately clouded or has necessity of good cloud computing for supporting the process and
sharing service architecture. Through the classes of technological evolution that daily reality for
organization as well as information exchange between individuals needs the support of
operational effectiveness which focuses upon analyzing the information system and rendering its
impact on the organizational performance in a productive way. Furthermore the application and
the process systematization integral part of the license software’s on the platform utilized for
operating the activities analyzing business activities pacific located centers to business area. Fees
of cloud based information system in case of exchange of accountable information is dependent
upon the dynamic scalability of resources and automatic self- improvising affordability of the
organization. Introduction of the IT system is not only to the responsiveness of the business

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processes with respect to time and necessity but also to identify the approach where it is been
hindered and where the options exist regarding utilizing the opportunities available to benefit by
incurring a lesser cost. The non-significant impact of the information technology upon reaching
the business value is found under human errors or measurement problems and hence the IT
investment should result account the impact of ensuring the redistribution of processes by
loading the intermediate process and accounting for the overall organizational performance in a
step-by-step manner.
Future Trends of AIS
The future trends and the related prospective is not only recording and assessing the
information for accounting activities was also ensuring that the business initiatives of the
organization or effectively documented and software are utilized which are updated with respect
to technological innovations. Only important that the people who are authorized for using the
system and represent the component like sales personnel manager accounts payable or receivable
employees who are assigned for the accounting information system but also it is dependent upon
the situation and individual need towards organizational commitment for the auditor or the
customers (Chan and Vasarhelyi. 2018). The process of retrieving, storage or Collection of
accountable data required restructuring in case of Telstra due to the reason that it requires
effective training within the employees that fundamentally sign in to the market and should
be computerized for official documentation of all the involved components. All the information
regarding financial operation within the business should be relevant and the company should
utilize shield in order to determine the financial health of Telstra. The software that are being
used to handle the cloud computing should not only be accurate in collecting and processing the

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data but also the storage and return of data after exchange of it effective machines that reduces
human errors that maximizes the relevant information coupled with adequate security.
Conclusion
. Conclusion can be drawn in accordance with the performance based approach in
determining the utilization of Information and exchange of it through a confidential let
understandable medium is necessary for identification of business value as well as ensuring that
the implementation of Information Technology within the organization or simplified from the
perspective of the end user cloud Computing through which information system exchange their
valuable resources should significantly affect organizational performance towards maximization
of its objectives. Notably the process of cloud computing is an emerging field which expect
change in the entire system of Information Technology and the IT market for the future it clearly
deploy products and services from infrastructural development to typical multilayered clouding
system which may be public private hybrid on virtually private. Window premises should enter
the cloud infrastructure based on the hardware and software that are allowed to be accessed by
the organization and also it depends upon the market demand and distributional needs out of
business which reduce the capital cost that maximizes the exposure to the target consumers or
the hosting organization. It may be availability of the elastic customers or with respect to the
resource pooling which requires extensive level of dynamically assign the customers depending
about the market demand of the standardized level of demand that specifically is present in case
of Telstra.

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References
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