Sales & Marketing Alignment: How to Synergize for Success
COSO
1.
2. What is COSO?
COSO, the Committee of Sponsoring
Organizations of the Treadway Commission, is
a private sector initiative established in 1985
by five financial professional associations.
5. Who?
• The Institute of Internal Auditors
• American Institute of Certified
Public Accountants
6. Who?
• The Institute of Internal Auditors
• American Institute of Certified
Public Accountants
• American Accounting Association
7. Who?
• The Institute of Internal Auditors
• American Institute of Certified
Public Accountants
• American Accounting Association
• Institute of Management Accountants
8. Who?
• The Institute of Internal Auditors
• American Institute of Certified
Public Accountants
• American Accounting Association
• Institute of Management Accountants
• Financial Executives Institute
10. Why?
COSO’s goal is to improve the quality of financial
reporting
through a focus on
corporate governance,
ethical practices, and
internal control.
12. Definition of
Internal Control
A process, effected by an entity's
board of directors, management, and other
personnel, designed to provide reasonable
assurance regarding the achievement of
objectives.
15. Categories of Internal Control
• Effectiveness and efficiency
of operations
• Reliability of financial reporting
16. Categories of Internal Control
• Effectiveness and efficiency
of operations
• Reliability of financial reporting
• Compliance with applicable laws
and regulations
25. ETHICS
1. Do board members and senior executives set
a day-in, day-out example of high integrity
and ethical behavior?
26. ETHICS
2. Is there a written code of conduct
for employees, and is it reinforced
by training, top down communications, and
requirements for periodic written statements of
compliance from key employees?
27. ETHICS
3. Are performance and incentive compensation
targets reasonable
and realistic, or do they create undue
pressure on achievement of short-term
results?
28. ETHICS
4. Is it clear that fraudulent financial reporting at
any level and in any
form will not be tolerated?
29. ETHICS
5. Are ethics woven into criteria that
are used to evaluate individual and business
unit performance?
30. ETHICS
6. Does management react appropriately when
receiving bad news from subordinates and
business units?
31. ETHICS
7. Does a process exist to resolve close ethical
calls?
32. ETHICS
8. Are business risks identified and candidly
discussed with the board
of directors?
34. RISK
1. Is relevant and reliable internal and external
information identified, compiled, and
communicated in a timely manner to those
who are positioned to act?
35. RISK
2. Are risks identified and analyzed, and actions
taken to mitigate them?
36. RISK
3. Are controls in place to assure that
management decisions are properly carried
out?
38. INTERNAL CONTROL
1. Do senior and line management
executives demonstrate that they
accept control responsibility, not just
delegate that responsibility to financial and
audit staff?
39. INTERNAL CONTROL
2. Does management routinely monitor controls
in process of running the organization’s
operations?
40. INTERNAL CONTROL
3. Does management clearly assign
responsibilities for training and monitoring
of internal controls?
41. INTERNAL CONTROL
4. Are periodic, systematic evaluations of control
systems conducted and documented?
42. INTERNAL CONTROL
5. Are such evaluations conducted by personnel
with appropriate responsibilities, business
experience, and knowledge of
the organization’s affairs?
43. INTERNAL CONTROL
6. Are appropriate criteria established to
evaluate controls?
44. INTERNAL CONTROL
7. Are control deficiencies reported to higher
levels of management and corrected on a
timely basis?
45. INTERNAL CONTROL
8. Are appropriate controls built in as new
systems are designed and brought on
stream?
47. AUDIT COMMITTEES
1. Has the board recently reviewed
adequacy of the audit committee’s written
charter?
48. AUDIT COMMITTEES
2. Are audit committee members
functioning and, in fact, independent of
management?
49. AUDIT COMMITTEES
3. Do audit committee members possess an
appropriate mix of operating and financial
control expertise?
50. AUDIT COMMITTEES
4. Does the audit committee understand
and monitor the broad organizational
control environment?
51. AUDIT COMMITTEES
5. Does the audit committee oversee
appropriateness, relevance, and reliability of
operational and financial reporting to the
board, as well as to investors and
other external users?
52. AUDIT COMMITTEES
6. Does the audit committee oversee
existence of and compliance with
ethical standards?
53. AUDIT COMMITTEES
7. Does the audit committee or full board
have a meaningful but challenging relationship with
independent auditors, internal auditors, senior
financial control executives, and key corporate and
business unit operating executives?
55. INTERNAL AUDITING
1. Does internal auditing have the support of
top management, the audit committee, and
the board of directors as a whole?
56. INTERNAL AUDITING
2. Has the written scope of internal audit
responsibilities been reviewed by the audit
committee for adequacy?
57. INTERNAL AUDITING
3. Is the organizational relationship between
internal auditing and senior executives
appropriate?
58. INTERNAL AUDITING
4. Does internal auditing have and use open
lines of communication and private access to
all senior officers and the audit committee?
59. INTERNAL AUDITING
5. Are audit reports covering the right subjects
distributed to the right people and acted
upon in a timely manner?
60. INTERNAL AUDITING
6. Do key audit executives possess an
appropriate level of expertise?
61. To Purchase the
Framework:
Visit
The IIA Bookstore at
www.theiia.org
65. The IIA
is the internal audit profession’s
global voice, recognized authority,
acknowledged leader, chief advocate
and principal educator
worldwide.
