Internal controls – Industry sector
This training activity provides an overview of the main concepts of internal control and its components, focussing on the COSO framework. The training activity will outline common internal control in a small to medium-sized company and look at potential solutions through examples and discussions. Participants will identify key controls to address some of the main risks, and well as the importance of addressing segregation of duties. This training activity will look at the effect that technology has had on internal controls in a small to medium sized companies and will also provide an overview on how to monitor whether the internal controls in your organization are effective.
ObjectivesBy the end of this training activity, participants will be able to:
- recognize the relevant concepts of the COSO framework and how it relates to their company;
- identify key controls to address some of the main risks in each component of the framework;
- identify the importance of addressing segregation of duties, management override and potential for fraud;
- understand the effect that technology may have on the development of strong controls and how technology can be used to promote effective internal controls in a small- to medium-sized company;
- understand the importance of documentation and monitoring of internal controls;
- develop an action plan for improvement in internal controls including addressing the importance of internal controls throughout the organization.
Internal control importance and main risks
- Importance of internal controls
- Management responsibility for internal controls in the context of an assurance engagement (review or audit performed on the company’s financial statements)
- Identification of main risk areas
- Control environment
- Risk assessment
- Information systems
- Control activities
- Types of fraud
- Components of the fraud triangle
- Fraud and COSO
- Professional skepticism
- ERP systems
- General IT controls
- Use of service providers
- Potential problems
Documentation and monitoring
- Types of documentation
- Determination of consequences for non-compliance
- Can this help documentation assist your auditor or review engagement accountant?
This training activity will benefit CPA’s in industry with a moderate level of knowledge of internal controls and the COSO framework.