Good involvements required to augment the accomplishment

Good governance
is represented by dimension of behaving with integrity, endorsing sincerity and
an inclusive participant engagement, specifying results translatable into maintainable
fiscal, monetary, communal, and ecological public good, defining the involvements
required to augment the accomplishment of the expected results, evolving a units
dimensions, inclusive of leadership and individual capabilities, handling risks
and presentation through ICS and vigorous public fiscal management, executing
sound exercise in transparency, reporting and auditing to provide actual
accountability (CIPFA, 2014). It is therefore said that good corporate governance
is substantiated and maintained through effective internal controls jotted down
by the shareholders.

Further,
Mandaci and Kahyaoglu (2012) recognised that rising enterprise complication and
the commercial scandal and dishonors in the past have necessitated broadening
the scope of internal auditing, and asserted that it is central for internal reviewing
and assessment to contribute to Enterprise Risk Management (ERM) and corporate
governance. An effective ICS requires documentation and developing a base for
the scopes of controls and its significance in overall public performance
(Imoniana, Costa Luiza, Alberto, and Alves, 2011).

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In 2006 US
Securities and Exchange Commission (SEC) called for internal controls guidance
document from COSO that accentuated the importance of strengthening internal
controls. In 2010, COSO announced the need for modernizing the internal control
model to cope with the change in environments that affect corporate governance
of institution by facilitating corporate failures and increase market
transparency. There has been a discussion around the relevancy and validity of
COSO’s five elements (e.g., Simmons, 1997a; Rittenberg, 2006; Callaghan; 2007).
Some have examined each component separately (e.g. Aikins, 2011; Arena and
Azzone 2009;

(Brief,
Dukerich, Brown and Brett, 1996; Cohen, Krishnamoorthy and Wright, 2002) and
some authors have taken two components and examined their association for
example (Agbejule & Jokipii, 2009; Goodwin-Stewart & Kent, 2006)
control activities and monitoring. But there was not enough convincing
empirical evidence in the literature that found all the components of COSO internal
control framework to be associated with each other empirically. However, in
2017, straight, indirect and joint linkages between the components of IC’s were
found to assist companies to develop more effective processes within the components
of COSO’s framework, which may enhance the quality of corporate governance
systems (Rae, Sands, Subramanium, 2017). The evidence from this study that
supports the existence of reciprocal associations among the COSO components is congruent
with the results of Imonianna et al (2012) that connections of all activities
by an integrated system were essential to ensure information reliability. They
concluded that this continuous updating of information will assist in ensuring
that the internal control structure provides a foundation to enhance and
strengthen the quality of an organization’s corporate governance.