All successful entities, regardless of nature, size, and complexity, must have a well-designed and effectively operating system of internal controls over reliable financial reporting, in addition to managing other risks. This course will provide practical guidance on exactly what a sound system of internal controls “looks like” and the resulting impact on the financial statement audit, particularly for smaller entities. In addition, we will explore COSO’s 2013 updates to the original 1992 Integrated Framework to better manage the unique and challenging risks of today’s entities.

Major Topics:

  • Differences between the 1992 version of the framework and the 2013 COSO guidance
  • Key components of internal control per the COSO Integrated Framework, and the important role each plays in the design and operating effectiveness of internal control over reliable financial reporting
  • Evaluating design and implementation of an entity’s design on internal controls, including impact on assessment of risk of material misstatement in a financial statement audit
  • Testing controls for operating effectiveness, including determining sufficiency and appropriateness of the nature, timing, and extent of control testing procedures
  • Special considerations related to the use of outside service organizations
  • Evaluating and communicating identified deficiencies in internal controls

Learning Objectives:

  • Describe important internal control concepts, including identifying "key controls" in a "top-down" approach to evaluating the design and implementation of internal control over reliable financial reporting
  • Discuss the difference between evaluating "design and implementation" and "operating effectiveness"
  • Explain the difference between a "material weakness" and a "significant deficiency" as it relates to internal control over reliable financial reporting

Designed For: Accountants both in public and private practice responsible for designing, evaluating and/or monitoring internal controls over financial reporting
Level of Knowledge: Intermediate
Prerequisite: Experience with designing, evaluating or monitoring internal controls
Advanced Preparation: None
Credits: 4