A Study Of The 3-D Internal Control Framework

COSO is the most widely used internal control framework. But it just provides a clear-cut guideline, not tell how to implement and evaluate it. This study sets out to design a 3-D control framework , providing a more vigorous system that corporate executive and directors can use to transform the internal control function into a valuable strategic tool for leveraging corporate strength and improving performance.Firstly, this paper summarizes the previous literature of this field, analyses the current main framework—Integrated Framework and other financial or non-financial control framework. And then it put forward a new thought, that is beyond COSO and to set up a 3-d internal control framework which can strengthen the corporate governance. This framework is a empowering and responsibility system , including management control ,and can be translated into rational standards.Secondly, this paper analyses the new 3-d internal control framework. It includes three dimension which are organization control , project control, activity control .In organization control dimension ,it stresses on the power, responsibility and profit distribution ;In project control dimension, it emphasizes the process-reengineering ;In activity control dimension, it underlines the activity management.Finally ,as to how to evaluate the 3-d control framework, this paper gives a useful tool--- Control Self Assessment(CSA). Since it was first formally described, CSA has become a major tool for organizations to monitor and assess their internal controls. CSA cut the auditing budget and make management finally accepts full responsibility for internal control.