Effectiveness Of Control Environment In Banking Sector In Bangladesh With Reference To The City Bank Limited

Abstract

Senior Executives have long sought ways to better control the enterprises they run. Internal controls are put in place to keep the company on course toward profitability goals and achievement of its missions and to minimize surprises along the way. They enable management to deal with rapidly changing economic and competitive environments, shifting customer demands and priorities, and restructuring for future growth. Internal controls promote efficiency, reduce risk of asset loss, and help ensure the reliability of financial statements and compliance with laws and regulations. This article will be exclusively focused to internal control environment model developed by Committee of Sponsoring Organizations (COSO) and eventually will examine the internal control practiced in the City Bank Limited in compliance with COSO model. The City Bank Limited management tries to implement best possible options for maintaining a balanced control environment that ultimately pave the way for attaining internal control to the fullest let alone shaping the financial report card. Because internal control serves many important purposes, there are increasing calls for better internal control systems. Internal control is looked upon more and more as a solution to a variety of potential problems.