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Essentials Of Internal Control

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Dick Lam
Dick Lam

Material used by my mentor/friend - Cheung Hon Wan in 2005 Internal Control Forum in Shanghai. I am glad for preparing this ppt for his speech

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Essentials of Internal Control Speaker: Cheung Hon Wan Edited by : Dick Lam
What financial reports tell ,[object Object],[object Object],[object Object],[object Object]
Do the reports right? SURE Management Auditor
Do the reports tell the truth? 1998 World Cup final France beat Brazil 3:0 ?
Working toward company objectives
What is internal control? ,[object Object],[object Object],[object Object],[object Object],The Committee of Sponsoring Organizations of the Treadway Commission (COSO)
The process of internal control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Internal Control – Comment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Internal Control – Observation ,[object Object],[object Object],[object Object]
An example: Internal Control in Purchasing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Role of Finance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Structure of a policy Principles Responsible Dept Owner/Monitor Shall do Shall not do Objectives Procedures Internal Audit
Underlying principles ,[object Object],[object Object],[object Object],[object Object],[object Object]
Decision Control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process Control From Decision to Process
Reporting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Compensating Controls ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
No single control is sufficient…. ,[object Object],[object Object],[object Object]
Be pragmatic….. T I C
No system is perfect !! ,[object Object],[object Object],[object Object],[object Object]

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Essentials Of Internal Control