Corporate Compliance Report--论文代写范文

51Due论文代写平台report代写范文:“Corporate Compliance Report”，这篇论文主要描述的是在近代美国的企业频发一些负面的丑闻信息，对于这些美国企业造成了不可挽回的巨大经济损失，这也使得不少公司股东与投资者对于公司失去了以往的信心，然后这样变化的起源是因为美国所盛行的虚假财务报告，为了防止这类的丑闻事件再次放生，美国的反对虚假财务报告委员会因此成立。

In the early years of the Twenty-first Century the United States economy was rocked in part by large corporate scandals that resulted in huge losses for many stockholders and dissolved much investor confidence. In response to these unfortunate incidents of fraudulent financial reporting, laws were passed and committees were organized in an effort to prevent them from happening again. Due to earlier scandals however, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) was formed in 1985 to initially research and create a report on forming integrated frameworks of internal corporate control. The report's revised completion in 1994 'presented a common definition of internal control and provided a framework against which internal control systems can be assessed and improved. This report is the standard that U.S. companies use to evaluate their compliance with [the 1977 Foreign Corrupt Passages Act]' (Wikipedia, 2007). Amidst the later corporate scandals in 2001, COSO developed a new framework 'that would be readily usable by managements to evaluate and improve their organizations' enterprise risk management' (COSO, 2007). Today's COSO framework involves several key concepts and eight components for managing enterprise risk. These will be discussed throughout the following pages as part of a proposed plan to implement enterprise risk management (ERM) for small corporation named Laminated Board Manufacturing, Inc.

COSO Key Concepts

According to its web site, COSO maintains there are four key concepts regarding internal control's providing of reasonable assurance in achieving a company's objectives. The first is that 'Internal control is a process. It is a means to an end, not an end in itself.' Secondly, 'Internal control is effected by people. It's not merely policy manuals and forms, but people at every level of an organization.' Third, 'Internal control can be expected to provide only reasonable assurance, not absolute assurance, to an entity's management and board.' And lastly, 'Internal control is geared to the achievement of objectives in one or more separate but overlapping categories' (COSO, Key Concepts, 2005). These statements establish a realistic view of the limitations of COSO's recommended procedures and offer a reminder of the need for human diligence in auditing progress towards meeting objectives.

COSO Recommendations

Laminated Board Manufacturing, Inc. (LBM) is a small, but growing wood products company located in southern Oregon. In anticipation of much greater growth in the near future, LBM is seeking to better its enterprise risk management in part through implementing the COSO recommendations. While there are eight components to the COSO outline the Committee itself states that not all of them will function identically, and that their 'application in small and midsize entities … may be less formal and less structured' (COSO, 2007). COSO also states that its eight component format is not necessarily always to be approached in numerical order but that they are eight parts of a 'multidirectional, iterative process in which almost any component can and does influence another' (COSO, 2007) In any case, those eight recommended components of enterprise risk are briefly described as follows:

Internal Environment

Perhaps related in some aspects to company 'culture' a corporation's internal environment is determined by the feelings and philosophies of the people and their management group. The company's general perspectives on risk tolerance, ethics and integrity set the tone of its internal environment.

Objective Setting

A company must determine its own objectives before deciding on the course of events that will lead to their achievement. The best course will be the one that is aligned with the values of the company's internal environment.

Event Identification

In the course of proceeding towards its objectives certain events will be encountered and it must be determined whether they comprise a risk or an opportunity. Risks will require further Assessment (as shown in the next component) while opportunities will be considered under re-evaluation of objective setting.

Risk Assessment

Risks can be analyzed both according to their likelihood of occurrence and their potential for creating loss or damage and assessed as per the perspectives of the internal environment.

Risk Response

In its approach to risk a company must determine its responses according to its views and tolerances for risk. The management may choose to either avoid or accept the risk, or find ways to reduce it and its negative impact.

Control Activities

A company must have pre-determined policies and procedures in place to ensure risk responses are appropriate, aligned with company philosophy and are implemented effectively.

Information and Communication

Communication regarding progress towards company goals and the events that precede their being reached needs to reach all levels and depth of the organization, keeping all parties informed, allowing them to best perform their duties.

Monitoring

Monitoring is the key to successful risk management with oversight allowing for decisions and changes to be made. It is management's duty to monitor risks and minimize any negative effects through various means.

LBM's General Implementation Plan

The COSO recommendations can be described as a format for performing internal audits as a way of enterprise risk management. To initially generate this format in a way that best suits the needs of the company, LBM's top management team should assess its own corporate culture and define its own tolerances for risk. This management team also needs to formally define and establish its views on ethics and integrity. One way to make these philosophies official is to create a company mission or vision statement, which can be prominently displayed around the company and found in employee handbooks. Once these standards and mores are firmly established, the team can then move on to defining the organization's objectives.

In this case LBM hasthree areas of its company that it would like to focus on for internal auditing under the COSO recommendations. One is new product development, the second is the company's financial responsibilities, and the third is its information systems. With these objectives set in place by the management team, the company can now go on to define the events that will mark progress towards them and assess whether they are risks or opportunities. Risks will then be analyzed for their likelihood and potential damage, and based on predetermined policies it will be decided how to best respond to those risks, making sure the responses are in harmony with LBM's mission statement and policies. Further policies will need to be pre-established to ensure relevant, company-wide communication for successful completion of the objectives is in place. Lastly, structure will be given for management – and in some cases, external auditors – to monitor the progress towards these objectives and the overall effectiveness of risk management policies that are in place.

In order to coordinate these efforts, internal auditing teams will be created mostly from members of the management staff. Each of these teams will be given the duty to focus on a single objective at a time, and a regular schedule will be established for these auditing reviews, be it weekly, monthly or quarterly. The focus of these audits will be to ensure three important areas are covered in pursuing the objectives, namely, 1) efficient and effective operations; 2) reporting of accurate financial data and; 3) compliance with laws and regulations.

Implementation Details

New Product Development

LBM has dabbled with developing a line of store fixture components, among other possible new products. It would be a good idea to first process these ideas from the perspective of enterprise risk management – with COSO's recommendations for internal auditing in place. The first phase of new product development will market research to determine the need for manufacturing. Then the products will have to be engineered and estimated and proposals made to potential customers. Each of these preliminary steps is, or contains, events that can be regarded as either opportunities or risks. If the auditing teams determine to accept the risks and make arrangements to mitigate any resulting damages, they can proceed with the new product development. The continuing success will be ensured by open communication lines and monitoring of all processes.

Financial Operations

While reporting of accurate financial data, in and of itself, is a chief concern of the auditing committee for pursuing any objective, in this case the entire financial processes of the company will be closely examined for efficiency and integrity. The risks and opportunities of this area largely involve debt, cash flow and investment expenditures. The auditing committee can examine the processes of the company's financial operations for efficiencies on a regular basis and examine risks and opportunities as they arise.

Information Systems

Whether maintaining the existing information systems or giving consideration to adopting a new one, the auditing committee can employ the same series of eight COSO recommendations to manage the inherent risks. The prospect of a new system is both an opportunity and a risk andthe audit committee can weigh the probable cost effectiveness of pursuing this option. Keeping the older system also contains the risks of it becoming obsolete, but also an opportunity to reduce expenditures on a new one. This is a situation that will require constant monitoring by the auditing committee to make sure the system (old or new) and its operators keep the company moving ahead in the industry.

Conclusion

Rather than following the usual unilateral decisions made by certain management officials at Laminated Board Manufacturing, Inc., the company now has a better chance to manage risk through use of COSO recommendations. If teams of internal audit committee members can approach the company's goals by regularly following objective lists of policies and procedures, they can increase overall efficiency, obtain an accurate picture of the company's finances, avoid unnecessary risks and mitigate the unavoidable ones. By implementing the eight basic components of COSO's recommendations LBM (or any other company) can increase the effectiveness of their enterprise risk management.

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