Management Internal Control Essentials

Learning Objectives

• To discuss the legislative foundations and regulatory requirements surrounding internal controls, with a focus on the Sarbanes-Oxley Act (SOX) and its implications for organizational management.
• To examine the development of frameworks such as COSO in 1992 and its subsequent update in 2013.
• To recognize the advantages and disadvantages of internal controls, gaining insights into their role in promoting efficient operations, preventing financial irregularities, and addressing potential challenges in their implementation.
• To grasp the significance of proactive measures, including education, communication, accountability, and cooperation, in embedding sound internal controls throughout the organization.

Course Description

Internal Controls (IC) are often misconceived by management as a mere set of forms, checklists, and templates mandated by auditors. However, this narrow view fails to recognize the profound impact that robust Internal Controls can have on an organization.

The webinar by Lynn Fountain provides a comprehensive overview of internal controls (IC) and their significance in organizational management. It delves into the legislative background, highlighting the responsibilities outlined in the Sarbanes-Oxley Act (SOX) and the increased scrutiny on internal control attestations. 

The importance of educating management on individual responsibilities for control processes is emphasized throughout the webinar. This online CPE Course advocates for a holistic understanding of internal controls, involving everyone in the organization. It explores the historical evolution of IC practices, dating back to ancient times, and the development of frameworks such as COSO in 1992 and its subsequent update in 2013.  It urges a shift from mere sign-offs to a comprehensive understanding of each participant's role in maintaining effective internal controls. 

Major Topics covered:

• Internal control focus 
• IC definition and history 
• IC advantages/disadvantages 
• COSO overview: COSO 1992 & COSO 2013 
• Methods to educate management 
• Setting the stage 
• Key monitoring methods

Join this CPE Auditing Course to explore why managers must perceive Internal Controls, not merely as compliance measures but also as strategic tools capable of creating ultimate organizational value.

Overview

• Internal controls

  7 mins
• Advantages and disadvantages of internal controls

  17 mins
• Framework defines five components derived from how management runs a business

  32 mins
• COSO uses "point of focus" (POF) as important charateristics of the principles

  45 mins
• Three main types of internal controls: Detective, preventive and corrective

  57 mins
• Evaluation and monitoring

  68 mins
• Cost vs. Benefit

  73 mins