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ed (Applegate and Wills, 1999). After establishing control activities, senior managers focus their attention to information and communication. This is where they enable pertinent employees to understand their control responsibilities and ensure that they receive timely and applicable reports that facilitate effective investigation and decision making (Rittenberg, Martens & Landes, 2007). Once this step is complete, senior managers allow auditors to take over a significant portion of the fifth component of the COSO framework which is monitoring.

  According to Curtis and Wu (2000), monitoring is the process of judging the quality of an organization's internal control performance over a given period. The auditors involved in internal control are both internal and external auditors. The internal auditors examine, evaluate and monitor the effectiveness and efficiency of the internal control system while the external auditors provide assurance on the financial reporting process and assess the adequacy of the internal control system (Rezaee, 1995). The monitoring component of the COSO framework relates to internal auditors. Internal auditors do a careful review of the annual and interim financial statements with a focus on quality of earnings, make sure that risk management processes developed my senior managers are working properly, and oversee that codes of conduct concerning ethical practices are in compliance with both FCPA and Sarbanes Oxley Acts (Harris, 2006). They also maintain close relationship with external auditors to make sure that these external auditors have a clear understanding of an organizations internal control structure (Rezaee, 1995). Senior managers also play a role in the monitoring component by establishing on-going monitoring activities of internal control. These include consistently reviewing operations and financial reports for any deviations, monitoring any customer related complaints, enabling employees to monitor each other, and doing physical inventories and asset reconciliation when appropriate (Moeller, 2009).

Users of Internal Control Reports
The internal control or audit reports that are generated by both external and internal auditors reflect the core principles found in both FCPA and Sarbanes Oxley acts. These reports contain the results of the internal control audits and are sent back to senior management. Senior managers are the users of these reports and they use these reports to formulate solutions for material weaknesses identified by auditors. If managers ignore material weaknesses, it is considered a criminal offense (Doyle et al., 2007). Hence it is vital for managers to place a high importance on addressing these material weaknesses quickly as they receive those details in the internal control reports generated by auditors.

Material weaknesses and their contribution to financial statements
Material weaknesses are very critical to address because they signal that an organization is facing significant control problems that will lead to material misstatements of financial statements as well as material misstatements that internal auditors failed to detect (Hamersley, Myers & Shakespeare, 2008). These weaknesses can be as detailed as inaccurate account balances or as general as a company's overall financial reporting process (Doyle et al., 2007). While auditors have an easy time tracking do本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。