Internal Controls to Mitigate Financial Reporting Risk: Designing Stronger Internal Controls for Small- or Mid-Size Entities

Learning Objectives

• To discuss the evolution of internal control through the decades.
• To describe the revamped 2013 COSO Internal Control-Integrated Framework, including how the various components and principles interrelate to form a strong system of internal control over reliable financial reporting.
• To identify special considerations for internal controls in a smaller-entity environment.
• To explain important varying audit considerations, such as Sarbanes-Oxley, Government Auditing Standards, and Single Audit Act requirements.

Course Description

Internal control isn’t an all-or-nothing proposition. Just a handful of foundational controls can significantly improve an organization’s risk management and the reliability of its financial data. The difficulty lies in knowing which controls have the greatest impact—and how to strengthen them. Internal controls are applied within an organization to satisfy objectives related to operations, compliance, and financial reporting. 

Many control frameworks exist that attempt to define what good internal control looks like. The most recognizable and trusted of these is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework. It defines the underlying principles of an effective system of internal control over the following:

• Reliability of financial reporting
• Effectiveness and efficiency of operations
• Compliance with applicable laws and regulations

This CPE course will provide practical analysis and tips for how a reporting entity can manage financial reporting risk effectively and efficiently. 

Major Topics Covered in this CPE Auditing Webinar:

• Evolution of internal control concepts.
• Revamped 2013 COSO Internal Control-Integrated Framework.
• Applying COSO Internal Control-Integrated Framework Concepts to Smaller Entities
• Designing an adequate ‘umbrella’ of internal controls over financial reporting to prevent, or detect and correct, material misstatement due to fraud or error
• Specific internal control considerations and sample documentation for smaller entities
• PCAOB Integrated Audits
• Single Audit Internal Control Considerations

This CPE webinar will also differentiate the auditor’s responsibilities for internal controls under Sarbanes Oxley, Government Auditing Standards, and Single Audit Act requirements.

Overview

• Why internal control?

  3 mins
• Audit risk assessment clarifications related to controls

  14 mins
• Monitoring - Aspects of recent emphasis

  29 mins
• Smaller entity internal control documentation

  41 mins
• Section 404 internal control reporting requirements

  89 mins