The COSO methodology as a management tool for internal control in a financial institution

Internal control is a topic of interest in business and academy alike. The research reported here describes one of the most important frameworks for managing internal control, that of The Committee of Sponsoring Organizations of the Treadway Commission (COSO). The principal objective of the article is to examine the appropriateness of the COSO methodology for managing internal control in the Bank of Brazil from the point of view of the branch managers. This is a qualitative study, in which documental analysis was utilized in a single case study. The appropriateness of Coso methodology for internal control within the Bank of Brazil was analyzed with respect to the following aspects: strategic and administrative objectives; efficiency and operational effectiveness; credibility of accounting and financing records; and compliance with applicable laws and norms. It is concluded that from the viewpoint of the selected branch managers, the COSO methodology is applicable in the Bank of Brazil and is aligned with the structural and cultural interests proposed by the bank.