Examining IT Controls in Accounting Info Systems via COSO Principle 11

This report delves into COSO Principle 11, focusing on the establishment and maintenance of IT controls within accounting information systems. It highlights the dependency on technology for expanding business processes and the importance of technology general controls, infrastructure IT activities, security measures, and management processes. The report further discusses the significance of strategic alignment, value delivery, and risk management in the context of technology within accounting systems. It emphasizes the need for organizations to leverage technology for secure data management, efficient operations, and overall growth, concluding that technology is integral to organizational advancement at all levels. Desklib provides a platform to access similar solved assignments and past papers for students.

Running head: COSO PRINCIPLE 11 INTERNAL CONTROLS
COSO PRINCIPLE 11 INTERNAL CONTROLS
Name of the Student
Name of the Organization
Author Note

1COSO PRINCIPLE 11 INTERNAL CONTROLS
Executive summary
The report mainly discusses the principle 11 of COSO to check IT controls in the accounting
information system. the report discuss all the important point of focus that was mentioned to
achieve through principle 11.It mainly focuses on the significance of the technology in
maintaining the up gradation in the accounts system of any organisation. The accounts and
finance are the backbone of any business. The up gradation provides ease to the problems
faced in the organization. The point of focus are briefly discussed that generate IT controls
for the account management system. It also discuss the advantages that are provided to the
organization in return. It concludes by stating the fact the technology is an important part of
the organisational growth on every levels.

2COSO PRINCIPLE 11 INTERNAL CONTROLS
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Dependency over technology to expand business process and Technology general controls:
................................................................................................................................................4
Infrastructure IT activities......................................................................................................4
Security..................................................................................................................................4
Management Process..............................................................................................................5
Control Activities...................................................................................................................5
Strategic alignment:...............................................................................................................5
Value delivery:.......................................................................................................................5
Risk management...................................................................................................................6
Conclusion..................................................................................................................................6
REFERENCES...........................................................................................................................6

3COSO PRINCIPLE 11 INTERNAL CONTROLS
Introduction
The COSO stands for Committee of Sponsoring Organization. The COSO is used to
check the corporate fraud persisting in an organization. The COSO model helps the
organisation to get cost effective internal controls in order to achieve the better objectives and
enhance organizational growth. The COSO model gives the support to the organizations to be
more flexible towards the increasing complexity of the strain that could be faced in the
business environment, helps the organization to match the pace of the changing work
environment. The COSO frameworks provides internal control to the organization by the help
of 17 principles that has been done to control activities, risk assessment, control activities,
information and communication and monitoring activities to each section of the organization.
In this report, we are going to discuss the principle 11 of the framework of COSO.
The principle 11 of the COSO model states that the organization creates and develops its
general control activities over the technology to reach its prime objectives. The focus of this
report is to give the proper application of Principle 11 over the accounting information
systems. The accounting information systems provide helps to manage store and access the
data regarding the financial operations that are done during the business process.
Discussion
The point of focus of the principle 11 framework by COSO is to bring the overall growth to
the organization. The major objective that principle 11 serves are:
1. It determines the dependency between the use of technology in business process and
the technology general controls.
2. It establish the control activities and select certain infrastructure activities.
3. It establish the security and management process control activities.
4. It establishes the development in the task in relevant technology acquisition,
5. It aids the maintenance of the process control activities.
The principle 11 frameworks by COSO provides the effectiveness of controls over IT
framework, infrastructure and the security framework of the computer systems in the
organization1. The technological significance mentioned below regarding every
objective that an organization would need to have a proper sustenance of the business
process. The elaboration will provide the application of principle 11 in aiding the
major point of focus to help the organization to thrive.
The following point’s topics will discuss how these points of focus will need the
technology to back up the accounting information system in generating IT controls
1 Simkin, Mark G., Carolyn S. Norman, and Jacob M. Rose. Core concepts of accounting information systems.
John Wiley & Sons, 2014.

4COSO PRINCIPLE 11 INTERNAL CONTROLS
and in what ways. It will discuss the technological significance behind any it
information system while implementing these IT controls.
1. Dependency over technology to expand business process and Technology
general controls:
The dependency of the organization towards the technology can be involved when
there is exposure of the information systems2. The information technology in the computer
systems that will help the devices will benefit the efficiency of the organization. The updated
technology will aid the business process to grow faster and give accurate results than before.
The exposure to the new technology by introducing hand held devices and spreadsheets.
There must be end computing laptop areas for employees in the company.
There must be proper security tools and proper cloud backup. The significance of the
technology helps the organisation to flourish in the better manner. The general controls of
technology that are provides the security tools and device backups over the cloud storage of
the system. The general control must provide the security of all the systems in the
organisation. The technical significance of the dependence of the technology shows that it
provides the consistency and does not let any detail to miss out in account management
system.
2. Infrastructure IT activities
The activities of infrastructure in the case of account information system can be
controlled under the technological advancement of the system. The account information
system require a constant maintenance of the database regarding the transaction of the debits
and credits of the system. In order to ensure that there is no misuse of the information as well
as data for the financial gain. It is quite necessary for the system to ensure the total security of
the accounts data it is quite necessary to secure the system in the firm.
3. Security
The security of the transaction is dependent upon the framework that a organization is
based on. The security of the forms is quite important to maintain the safety of the
documents. Any alteration in the documents can lead to grave losses. The information
technology helps in managing the security of the system3.
2 Libby, R. (2017). Accounting and human information processing. In The Routledge Companion to
Behavioural Accounting Research (pp. 42-54). Routledge.
3 Komala, Adeh Ratna. "Cause and effect of accounting information system: A study in national Zakat
management organization." JABS 3, no. 2 (2017): 69-76

5COSO PRINCIPLE 11 INTERNAL CONTROLS
4. Management Process
The accounting system need the managing of the data that has been stored in the system. The
accounting system depends upon the retrieval and management of data. The account systems
needs a proper updating of all the transaction, all the payments that are done on the computer
systems. The management of the account information system can be maintained by installing
the online spreadsheets that could be updated as per the requirements through hand held
platforms. The management process of the account system can take care of inbound and
outbound logistics all together4
5. Control Activities
The accounting information system needs to have a private key to ensure the privacy
of the account system5. The accounting information system needs the technologies to control
activities in the system that deals with the privacy concern and the security framework. With
the countless database, it is genuine to miss out few details at times. There is quite a necessity
to update the incoming and outgoing transaction, credits and debits that are done by the
system. The control activities make sure that there is no system overloading6. The memory
allocation in order to save the storage of the system is very important. The accounting
information system needs a technological aid to help it with above issues. The accounting
information system needs an up gradation in the technology to balance the data recorded
every day. The accounting system needs cognitive devices to update every data and make
sure no transaction or details is missed out7.
6. Strategic alignment:
Most firms have their yearly retreats where the overall objectives needs to grow and manage
the firm. These objectives helps the IT teams to create a statistical budget and meet the
requirements. The technology helps the organization to regrow and rebuild according to the
strategic management plan with continuous progress being made through IT alignment.
7. Value delivery:
The evolving companies can increase productivity by optimising the production process .the
it governance requires that firm to not only monitor existing accounts but also upgrade the
4 Rose, Michael, Priya Sarjoo, and Kevin Bennett. "A boost to fraud risk assessments: reviews based on the
updated COSO Internal Control-Integrated Framework may help prevent fraud." Internal Auditor 72, no. 3
(2015): 22-24.
5 Babkin, Eduard, Pavel Malyzhenkov, and Fabrizio Rossi. "The Perspectives of DEMO Application to COSO
Internal Audit Framework Risks Mitigation." In Enterprise Engineering Working Conference, pp. 66-73.
Springer, Cham, 2017
6 Chang, She-I., David C. Yen, I-Cheng Chang, and Derek Jan. "Internal control framework for a compliant
ERP system." Information & Management 51, no. 2 (2014): 187-205.
7 Cohen, Yuval, Shai Rozenes, and Roni Horowitz. "Integrating Strategic Considerations and Value Co-creation
in Project Management." Universal Journal of Management 5, no. 2 (2017): 94-99.

6COSO PRINCIPLE 11 INTERNAL CONTROLS
technology that manages it. The account services that have installed in the firm must be
provided with the remote access to the employees provide the ease of updating. The cloud
storage provided on the internet provides an extra backup on the data on the system.
8. Risk management
The IT governance provide the firms to be able to provide the firm with the possible threats
that would limit the growth of the organization. The technology helps in the to review the
firm’s infrastructure as well as testing the services check the possible threats that can affect
the system. The risk management can be observed under the technological advancement.
Through technology, we can control the risk that could hamper the system through unethical
habits and secure the firms infrastructure.
Conclusion
The report mainly discusses the main use of COSO in implementing the account
information system. The account information system needs to be paid a lot attention because
it etechnology in to create a secure data and organisation that is connected with the system.
The report mainly discuss the overall function of principle 11 in the organisation8.
REFERENCES.
Simkin, Mark G., Carolyn S. Norman, and Jacob M. Rose. Core concepts of accounting
information systems. John Wiley & Sons, 2014.
Libby, R. (2017). Accounting and human information processing. In The Routledge
Companion to Behavioural Accounting Research (pp. 42-54). Routledge.
Komala, Adeh Ratna. "Cause and effect of accounting information system: A study in
national Zakat management organization." JABS 3, no. 2 (2017): 69-76.
8 Rose, Michael, Priya Sarjoo, and Kevin Bennett. "A boost to fraud risk assessments: reviews based on the
updated COSO Internal Control-Integrated Framework may help prevent fraud." Internal Auditor 72, no. 3
(2015): 22-24.

7COSO PRINCIPLE 11 INTERNAL CONTROLS
Rose, Michael, Priya Sarjoo, and Kevin Bennett. "A boost to fraud risk assessments: reviews
based on the updated COSO Internal Control-Integrated Framework may help prevent
fraud." Internal Auditor 72, no. 3 (2015): 22-24.
Chang, She-I., David C. Yen, I-Cheng Chang, and Derek Jan. "Internal control framework for
a compliant ERP system." Information & Management 51, no. 2 (2014): 187-205.
Germann, Simon, and Shannon Manasseh. "Internal Controls in Small and Medium Size
Enterprises: A Study of Matamata." AMR (2017): 51.
Babkin, Eduard, Pavel Malyzhenkov, and Fabrizio Rossi. "The Perspectives of DEMO
Application to COSO Internal Audit Framework Risks Mitigation." In Enterprise
Engineering Working Conference, pp. 66-73. Springer, Cham, 2017.
Cohen, Yuval, Shai Rozenes, and Roni Horowitz. "Integrating Strategic Considerations and
Value Co-creation in Project Management." Universal Journal of Management 5, no. 2
(2017): 94-99.