Internal Control and Control SelfAssessment - PowerPoint PPT Presentation

1 / 9
About This Presentation
Title:

Internal Control and Control SelfAssessment

Description:

Internal Control System. I N T E R N A L C O N T R O L. IS A PEOPLE PROCESS ... Internal Control System. Control Environment. Sets the Tone of Organization ... – PowerPoint PPT presentation

Number of Views:44
Avg rating:3.0/5.0
Slides: 10
Provided by: jtimoth7
Category:

less

Transcript and Presenter's Notes

Title: Internal Control and Control SelfAssessment


1
Internal Control and Control Self-Assessment
  • Modern Tools for Modern Times

OCFS - Audit Quality Control
2
ORIGIN OF COSO
  • COMMITTEE OF
  • SPONSORING ORGANIZATIONS
  • (TREADWAY COMMISSION)
  • AICPA Advisory Committee
  • American Accounting Institute
  • Institute of Internal Auditors
  • Institute of Mgmt Accountants
  • Financial Executives Institute

Internal Control System
3
I N T E R N A L C O N T R O LIS A PEOPLE
PROCESS
ACTIONS TAKEN BY MANAGEMENT STAFFTO PROVIDE
REASONABLE ASSURANCE THAT AGENCY WILL ACHIEVE
  • FOUR OBJECTIVES
  • O perations are Effective / Efficient
  • C ompliance with Laws Regs
  • F inancial Mgmt Reporting - Reliable
  • S afeguard Assets

Internal Control System
4
COSO Ingredients
  • FIVE COMPONENTS
  • Control Environment
  • Risk Assessment
  • Control Activities
  • Information Communication
  • Monitoring

Internal Control System
5
Control Environment
  • Sets the Tone of Organization
  • Foundation for All Other Components
  • Integrity, Ethical Values Competence
  • Management's Philosophy Operating Style
  • Assignment of Authority Responsibility
  • Organizational Structure

Internal Control System
6
Risk Assessment
RISKS CAN GET IN THEWAY OF OBJECTIVES
  • Precondition Establishment of Objectives
  • Can Be External or Internal
  • e.g. External - Adoption Safe Families Act
  • e.g. Internal - Connections
  • Relates Risks to Achievement of Objectives
  • Determines How Risks Are to Be Managed

Internal Control System
7
Control Activities
  • Policies Procedures
  • Ensure Actions Are Taken to Address Risks
  • Include Approval, Authorization, Verification,
    Reconciliation, Segregation of Duties, etc.

Internal Control System
8
Information Communication
  • Must Be Timely Relevant
  • Can Be Operational, Financial or
    Compliance-Related
  • Must Cover Internal External Events (e.g. ASFA
    requirements, Marisol)
  • Must Flow Down, Across Up
  • Must Involve External Parties

Internal Control System
9
Monitoring Evaluation
  • Need to Assess Quality Over Time
  • Can Be Ongoing and/or Separate Evaluations
  • Occurs During the Normal Course of Business
  • Scope Frequency of Separate Evaluations Should
    Be Related to Risk Effectiveness of Ongoing
    Monitoring

Internal Control System
Write a Comment
User Comments (0)
About PowerShow.com