Question

Which of the following is an effective implementation of the information and communication component of COSO’s Internal Control–Integrated Framework? a. The organization has one-way communication with parties external to the organization. b. The organization has a whistleblower function that allows parties internal and external to the organization to communicate concerns about possible inappropriate actions in the organization’s operations. c. The organization has a robust process for assessing risks internal and external to the organization. d. The organization builds in edit checks to determine whether all purchases are made from authorized vendors. e. All of the above.

Answer 1

The effective implementation of the information and communication component of COSO's Internal Control-Integrated Framework is option b. The organization has a whistleblower function that allows parties internal and external to the organization to communicate concerns about possible inappropriate actions in the organization's operations.

Step-by-step explanation:

The effective implementation of the information and communication component of COSO's Internal Control-Integrated Framework is option b. The organization has a whistleblower function that allows parties internal and external to the organization to communicate concerns about possible inappropriate actions in the organization's operations.

The whistleblower function allows individuals within and outside the organization to report any concerns or instances of misconduct or inappropriate actions. This promotes transparency and accountability within the organization and helps in detecting and addressing any issues or risks promptly.

This implementation is effective because it encourages open communication and provides a mechanism for reporting without fear of retaliation. It helps in identifying potential problems and taking appropriate actions to prevent or mitigate them, thereby enhancing the overall internal control system.

Answer 2

b. The organization has a whistleblower function that allows parties internal and external to the organization to communicate concerns about possible inappropriate actions in the organization’s operations.

Step-by-step explanation:

The information and communication component of COSO’s Internal Control–Integrated Framework will best be implemented by having a whistle blower function that will allow proper feedback from employees and give insights to level of compliance to laid down internal control processes.

Whistle blowing is the reporting of unethical practices in an organisation's operations. Reporting could be done by both internal and external parties.