Accounting System & Assurance

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Running head: ACCOUNTING SYSTEM & ASSURANCE
ACCOUNTING SYSTEM & ASSURANCE
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING SYSTEM & ASSURANCE
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

3ACCOUNTING SYSTEM & ASSURANCE
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