The COSO-Based Framework Internal Control System of a Telephone Company: A Compliance Study

Abstract

A well-managed company is what every organization desires to achieve –its goals to profitability, accomplish its mission,and minimize surprises along the way. In order to put their goals in action, businesses should put first measures in order to protect companies’ financial and management information, that is, when internal control intervenes in the company’s operation. This study aims to determine the level of compliance of the internal control system as applied in a telephone business company. The descriptive method fit into this study because researchers sought for answers to some questions about the level of compliance of the internal control system of the company to the COSO-based framework of the respondents. Every business scheme changes regularly at different intervals. These changes are susceptible to risks, both internal and external. Furthermore, the control environment depicts that the procedures, processes, and the organizational structure provided by the top management is effective and implementing the factors that embodies the control environment in order for them to continually have a sound internal control system. The respondents confirmed that the strength of a particular policy being implemented can be viewed by the way of performing evaluation procedures to the whole management that signifies that the top management has full eyesight on the policy being executed. The following are recommended: the firm must comply with the set of standards, policies and procedures delegated to them to achieve goal congruence within the firm; upper management shall establish strong written policies and procedures to implement tighter control systems; and an emphasis on the need for preventive control systems, proper monitoring, and business risk assessment.