CRITERIA OF CONTROL

COCO FRAMEWORK
CANADIAN INSTITUTE OF
CHARTERED ACCOUNTANT
Internal Control

CoCo describes Internal Control as actions that

foster the best result for an organization.

Effectiveness and efficiency of operations.

Reliability of internal and external reporting.
Compliance with applicable laws and regulations and
internal policies.
What is CoCo?

The criteria of control (CoCo) is a further control

framework that can mean more to teams and
individuals and includes an interesting learning
dynamic.
CoCo Framework Model
CoCo Criteria : Purpose

1. Objectives should be established and communicated.

2. The significant internal and external risks faced by an organization in
the achievement of its objectives should be identified and assessed.
3. Policies designed to support the achievement of an organization’s
objectives and the management of its risks should be established,
communicated and practiced so that people understand what is
expected of them and the scope of their freedom to act.
4. Plans to guide efforts in achieving the organization’s objectives should
be established and communicated.
5. Objectives and related plans should include measurable performance
targets and indicators.
 CoCo Criteria : Commitment

6. Shared ethical values, including integrity, should be established,

communicated and practiced throughout the organization.
7. Human resource policies and practices should be consistent with an
organization’s ethical values and with the achievement of its objectives.
8. Authority, responsibility, and accountability should be clearly defined and
consistent with an organization’s objectives so that decisions and actions
are taken by the appropriate people.
9. An atmosphere of mutual trust should be fostered to support the flow of
information between people and their effective performance toward
achieving the organization’s objectives.
 CoCo Criteria: Capability

10. People should have the necessary knowledge, skills and tools to support
the achievement of the organization’s objectives
11. Communication processes should support the organization’s values and
the achievement of its objectives
12. Sufficient and relevant information should be identified and communicated
in a timely manner to enable people to perform their assigned responsibilities
13.The decisions and actions of different parts of the organization should be
coordinated
14. Control activities should be designed as an integral part of the
organization, taking into consideration its objectives, the risks to their
achievement, the inter-relatedness of control elements.
 CoCo Criteria: Monitoring and Learning

15. Environment should be monitored to obtain information that may signal a

need to re-evaluate the organization’s objectives or control.
16. Performance should be monitored against the targets and indicators
identified in the organization’s objectives and plans.
17. Assumptions behind an organization’s objectives should be periodically
challenged.
18. Information needs and related information systems should be reassessed as
objectives change or as reporting deficiencies are identified.
19. Follow-up procedures should be established and performed to ensure
appropriate change or action occurs.
20. Management should periodically assess the effectiveness of control in its
organization and communicate the results to those to whom it is accountable.
Definition of Internal Control

COSO COCO
a process, those elements of an organization
(including its resources, systems,
processes, culture, structure and
tasks) that, taken together, support
people in the achievement of the
objectives.

effected by an entity's board of

directors, management, and other
personnel,

designed to provide reasonable

assurance regarding the
achievement of objectives
Objectives of Internal Controls

COSO COCO
effectiveness and efficiency of effectiveness and efficiency of
operations; operations

reliability of financial reliability of internal and

reporting; and external reporting; and
compliance with applicable compliance with applicable
laws and regulations. laws and regulations and
internal policies.
THANK YOU!
Maria Alaysa L. Lacambra