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CA Ravi Taori
• K - Knowledge of subject matter of TP - If not having requisite knowledge EC will be less reliable
• A - Ability & willingness - If there is lack of willingness or ability EC will be less reliable
Situation which indicates lack of Willingness & Ability:
Willingness: (Shortcut: PEN)
o TP may be concerned with Potential legal liability resulting from responding.
o TP may operate in Environment where responding to EC request is not significant (important)
o TP may Not accept responsibility to respond for EC request.
Ability:
o TP may consider responding too costly or time consuming.
o May account for transaction in different currency.

(CNO-MRI.600) International Internal Control Frameworks
COSO (Committee of Sponsoring Organisation of treadway commission)
COSO's Internal Control
• COSO's Internal Control - Integrated Framework introduced in 1992.
• Designed to provide guidance on establishing better controls for achieving objectives.
• Entity-level objectives categorized into operations, financial reporting, and compliance.
• Framework consists of over 20 basic principles representing fundamental concepts.
• Five components of the framework: control environment, risk assessment, control activities, information and
communication, and monitoring
• Principles include key elements for compliance, such as integrity, ethical values, authorities and
responsibilities, policies and procedures, and reporting deficiencies.
Five Components of COSO are as follows: Shortcut: C-MICR
• Control Environment
• Risk Assessment
• Control Activities
• Monitoring
• Information and Communication
The COSO Framework assesses the effectiveness of internal control systems to achieve management-
defined objectives. It includes three categories of objectives:
1. Compliance Objectives: Relating to the entity's compliance with applicable laws, regulations, and
accounting standards.
2. Operations Objectives: Related to the effectiveness and efficiency of entity operations and safeguarding
assets.
3. Reporting Objectives: Related to internal and external financial and non-financial reporting, including
reliability, timeliness, and transparency.
COCO (Criteria of Control Framework)
CoCo, introduced in 1992, aims to
• improve organizational performance and decision-making through enhanced controls, risk management,
and corporate governance.
The CoCo framework outlines criteria for effective control in the following four areas
• Purpose
• Commitment
• Capability
• Monitoring and Learning
Turnbull Report
The key principles of the Code are enunciated as below:

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