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(03.04.2007 - 17.11.2009) |
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Preface
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The creation of the ECAR model resulted from a long process - that began in 2002 -
in trying to resolve the things that troubled me in the COSO [internal control] framework of
the Treadway Commission of Sponsoring Organizations.
The ECAR model is based on the idea that internal control in essence has a retentive role.
It suppresses departures from pre-determined course of action
within a process in order to keep performance or a state of affairs within
what is expected, allowed or accepted.
Control exists inherently where direction and objectives exist;
it is an element within all target-oriented efforts; it makes them work.
In a broader concept of control internal control, risk management,
and quality management systems each have different but important roles.
These roles complement each other in acceptable achievement of objectives of an organization.
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The first version of the ECAR document was published 3rd April 2007.
This document, ECAR 2 document, introduces the revised ECAR model.
It is generally applicable to any process,
not only expressively to those related to financial management;
financial reporting has no special status among basic processes.
A new objective of internal control has been identified: obtaining information necessary
for control and communication.
The model emphasizes, more than earlier, organizational culture.
Design of internal control has now a chapter of its own.
The relation between risk management and internal control has been clarified.
As a result of those changes the structure of this and earlier version of the ECAR document
is somewhat different.
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I have tried to write put only the key things about internal control into the ECAR 2 document.
Much has been written about those things - such as control information.
You may find tips where to get more information about them on the web site here.
Helsinki, 16th November 2009
Matti Mattila, CIA, CISA
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You can download free full version copy of ECAR 2 Document here (pdf file)