COSO's Internal Control - Integrated Framework.
Includes:
Objectives;
Components;
Principles relating to the components and
Point of Focus assisting users in determining whether the principles are present and functioning
The COSO framework provides guidance for establishing effective internal controls. It is comprised of 5 components: control environment, risk assessment, control activities, information and communication, and monitoring. The control environment sets the tone at the top and influences employee conduct. Risk assessment involves identifying risks to financial reporting. Control activities are policies and procedures that help ensure management directives are followed. Information and communication systems identify, capture, and communicate pertinent information. Monitoring assesses internal control effectiveness over time.
The document discusses the COSO internal control framework. It provides background on COSO, describing it as a joint initiative to provide guidance on internal controls. The framework was first published in 1992 and provides principles and attributes for internal controls relating to control environment, risk assessment, control activities, information/communication, and monitoring. It discusses changes in the updated framework to make it more relevant to today's business environment. Key changes include clarifying the role of objective setting, reflecting the increased relevance of technology, and enhancing governance concepts.
Practical approach to Risk Based Internal AuditManoj Agarwal
The document provides an overview of risk based internal auditing. It discusses key concepts like the definition of risk, COSO ERM framework, three lines of defense model, definition of internal audit, and risk based internal audit approach. The approach involves identifying the audit universe and processes, risk identification and assessment, risk scoring and heat mapping, developing the risk based internal audit plan, and executing the plan. Various tools for risk based auditing like the audit tracker, audit report templates, and resources are also outlined.
The document discusses COSO (Committee of Sponsoring Organizations of the Treadway Commission), an internal control framework that auditors use to assess clients' internal controls. It describes the five components of COSO - control environment, risk assessment, control activities, information and communication, and monitoring. The document also discusses how COSO fits into the audit process and provides an overview of COSO 2, which incorporates enterprise risk management.
The document discusses Sarbanes-Oxley (SOX) compliance and the role of IT in designing and implementing internal controls over financial reporting. It defines key terms like COSO, internal controls, and the five components of an internal control system. It then outlines an IT compliance roadmap and describes how to document entity-level controls, IT policies and procedures, control narratives, flowcharts, and completed questionnaires.
This document discusses assurance engagements other than audits of general purpose financial reports. It defines assurance engagements and outlines their key elements. It describes different types of assurance engagements including those involving historical financial information, compliance, performance and sustainability. Examples of other assurance engagements discussed are forensic auditing and continuous auditing. The document also covers quality standards for assurance practitioners including ISO standards and total quality management.
The document provides an overview of internal audit methodology. It defines internal audit as an independent function that appraises entity operations to strengthen governance and controls. The agenda outlines types of audits like compliance, operational and risk-based audits. It then describes the stages of a risk-based internal audit framework from defining scope to the audit report. Tools discussed include an audit tracker, control testing, and preparing audit reports and presentations.
The document discusses the COSO internal control framework's principles of monitoring internal controls. It states that monitoring ensures controls continue operating effectively through ongoing or separate evaluations. Planning and organizational support form the foundation for monitoring, including tone from management and the board's understanding of monitoring's importance. Monitoring procedures evaluate important controls over meaningful risks, and assessing results prioritizes and communicates deficiencies for corrective action. Effective monitoring uses a systematic process of identifying risks and determining optimal monitoring approaches.
The COSO framework provides guidance for establishing effective internal controls. It is comprised of 5 components: control environment, risk assessment, control activities, information and communication, and monitoring. The control environment sets the tone at the top and influences employee conduct. Risk assessment involves identifying risks to financial reporting. Control activities are policies and procedures that help ensure management directives are followed. Information and communication systems identify, capture, and communicate pertinent information. Monitoring assesses internal control effectiveness over time.
The document discusses the COSO internal control framework. It provides background on COSO, describing it as a joint initiative to provide guidance on internal controls. The framework was first published in 1992 and provides principles and attributes for internal controls relating to control environment, risk assessment, control activities, information/communication, and monitoring. It discusses changes in the updated framework to make it more relevant to today's business environment. Key changes include clarifying the role of objective setting, reflecting the increased relevance of technology, and enhancing governance concepts.
Practical approach to Risk Based Internal AuditManoj Agarwal
The document provides an overview of risk based internal auditing. It discusses key concepts like the definition of risk, COSO ERM framework, three lines of defense model, definition of internal audit, and risk based internal audit approach. The approach involves identifying the audit universe and processes, risk identification and assessment, risk scoring and heat mapping, developing the risk based internal audit plan, and executing the plan. Various tools for risk based auditing like the audit tracker, audit report templates, and resources are also outlined.
The document discusses COSO (Committee of Sponsoring Organizations of the Treadway Commission), an internal control framework that auditors use to assess clients' internal controls. It describes the five components of COSO - control environment, risk assessment, control activities, information and communication, and monitoring. The document also discusses how COSO fits into the audit process and provides an overview of COSO 2, which incorporates enterprise risk management.
The document discusses Sarbanes-Oxley (SOX) compliance and the role of IT in designing and implementing internal controls over financial reporting. It defines key terms like COSO, internal controls, and the five components of an internal control system. It then outlines an IT compliance roadmap and describes how to document entity-level controls, IT policies and procedures, control narratives, flowcharts, and completed questionnaires.
This document discusses assurance engagements other than audits of general purpose financial reports. It defines assurance engagements and outlines their key elements. It describes different types of assurance engagements including those involving historical financial information, compliance, performance and sustainability. Examples of other assurance engagements discussed are forensic auditing and continuous auditing. The document also covers quality standards for assurance practitioners including ISO standards and total quality management.
The document provides an overview of internal audit methodology. It defines internal audit as an independent function that appraises entity operations to strengthen governance and controls. The agenda outlines types of audits like compliance, operational and risk-based audits. It then describes the stages of a risk-based internal audit framework from defining scope to the audit report. Tools discussed include an audit tracker, control testing, and preparing audit reports and presentations.
The document discusses the COSO internal control framework's principles of monitoring internal controls. It states that monitoring ensures controls continue operating effectively through ongoing or separate evaluations. Planning and organizational support form the foundation for monitoring, including tone from management and the board's understanding of monitoring's importance. Monitoring procedures evaluate important controls over meaningful risks, and assessing results prioritizes and communicates deficiencies for corrective action. Effective monitoring uses a systematic process of identifying risks and determining optimal monitoring approaches.
This document discusses audit risk assessment. It defines audit risk as the risk that an auditor gives an inappropriate opinion when financial statements are materially misstated. Audit risk has three components: inherent risk, control risk, and detection risk. The auditor assesses these risks to determine the nature, timing and extent of audit procedures. A key part of risk assessment is understanding the client's internal controls, including control environment, risk assessment, information and communication, control activities, and monitoring. The auditor documents their understanding of internal controls to help plan the audit and determine appropriate audit strategies.
This document discusses the role of internal auditing in banks. It defines internal auditing as an independent, objective function that evaluates risk management, controls, and governance processes to help an organization achieve its objectives. The document outlines key differences between internal and external auditing. Internal auditing resides within an organization, evaluates a wide range of risks and controls, and reports to the audit committee, while external auditing resides outside the organization and focuses on financial risks and statutory audits. The document also describes internal audit's role in risk-based auditing and reporting, advisory services, and continuous improvement of operations.
The document summarizes IFRS 3 Business Combinations. It outlines that IFRS 3 specifies that all business combinations must be accounted for using the purchase method. It defines key terms like business, acquisition date, and cost of a business combination. It describes how to identify the acquirer, measure assets and liabilities at fair value on the acquisition date, and account for goodwill and negative goodwill. Significant differences from Indian GAAP are also highlighted.
This document summarizes a webinar about COSO's proposed revisions to its Internal Control - Integrated Framework and the implications for information technology. The webinar featured presentations from Ken Vander Wal of ISACA, David Landsittel of COSO, and Cara Beston of PricewaterhouseCoopers. They discussed COSO's project to update the framework to reflect changes in the business environment and technology. The proposed updates include codifying principles, expanding the financial reporting objective, and increasing the focus on operations and compliance. Technology is now embedded in business and affects all aspects of internal control. The updated framework considers how technology impacts risks and controls across the five components. Attendees were encouraged to review and
The document discusses risk-based auditing (RBIA) and its key concepts. RBIA requires internal audit to be strategically linked to an organization's risk management and assurance frameworks. It also discusses applying RBIA methodology to internal audit assignments and linking an organization's risk framework to the stages of RBIA. The document provides information on introducing RBIA to an organization and adapting it based on the organization's structures, processes and risk maturity.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps evaluate and improve risk management, control, and governance processes. Internal audits are important for monitoring business assets, verifying compliance with policies and procedures, and providing objective insight, improving efficiency, evaluating risks, assessing controls, and ensuring legal compliance. The main types of internal audits are compliance, environmental, information technology, operational, and performance audits. The internal audit process involves planning, fieldwork, reporting, and follow-up phases.
This document provides an overview of an internal risk assessment process presentation. It outlines the presentation agenda, which includes discussions of internal control frameworks like COSO and COBIT, risk assessment techniques, risk identification mapping, and the components of internal control. It also details the key aspects of each presentation section, such as defining internal control, its objectives, and management and auditor responsibilities regarding internal control assessment.
POSITION OF INTERNAL AUDIT IN THE CORPORATE FRAMEWORKHaresh Lalwani
This presentation is my endeavor to bring to notice the new position that internal audit enjoys today in the corporate framework, expectations of the industry and emerging opportunities for the professionals.
The document discusses governance and the role of the auditor in governance. It defines governance and describes the auditor's role in providing assurance and oversight of governance processes. The auditor interacts with the audit committee, board, management and shareholders and concerns itself with issues like internal control, risk management and financial reporting. It also discusses the roles of internal, operational and performance audits in public sector governance.
The document discusses internal audit training, including evaluating internal controls, audit approaches, planning and controlling internal audits, performing audits, documenting findings, and reporting. It covers defining internal control systems, the objectives they achieve, types and classifications of controls, control activities, monitoring, and evaluating internal controls. The key topics are organizing an effective internal control system and the internal auditor's role in evaluating controls and audit approaches.
This document summarizes COSO's Enterprise Risk Management - Integrated Framework. It defines ERM as a process run by an organization's board and management to identify potential events, manage risk within the organization's risk appetite, and provide assurance around achieving objectives. The framework identifies 8 components of ERM - internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication, and monitoring. It describes how organizations can implement ERM through risk assessments, determining risk appetite, identifying responses, and ongoing monitoring and oversight. Internal auditors can help by reviewing controls and risk processes and ensuring resources target key risk areas.
This document discusses internal control and compliance. It defines internal control as processes designed by a company's management to reasonably ensure objectives are achieved in operations, financial reporting, and legal compliance. Compliance refers to following orders or rules. The document outlines objectives, standards, elements, and functions of internal control, as well as the role of a bank's internal control and compliance department in monitoring activities and ensuring adherence to regulations.
The document provides an introduction to auditing, discussing the origin of auditing in the 15th century, the evolving concepts of auditing such as its role in ensuring accountability and compliance, and definitions of auditing from various sources. It also covers the objectives of auditing in verifying financial statements and detecting errors and fraud, the differences between bookkeeping, accounting and auditing, and the various types and classifications of audits.
Internal control and Control Self AssessmentManoj Agarwal
The document provides an overview of internal control and control self-assessment. It defines internal control and control self-assessment and discusses the rationale, goals, benefits and case study of control self-assessment. It outlines the COSO internal control framework components of control environment, risk assessment, control activities, monitoring and traditional auditing vs control self-assessment. The presentation also discusses control types, principles of internal control and evaluating controls objectives. It provides a sample control self-assessment template and case study.
This document provides guidance on compiling a Risk and Audit Universe (RAU) which documents an organization's objectives, risks, controls, and necessary audit checks. It discusses starting with an existing Objectives, Risks, and Controls Register (ORCR) and improving it if needed. Key steps include identifying objectives, sources of risks, and methods of identifying risks like interviews, risk workshops, and reviewing accounts and compliance requirements. The document also provides tips on organizing the identified objectives and risks and managing risks through scoring, ownership, and controls. It aims to show how to develop a comprehensive RAU that can be used to plan audits and deliver opinions to management.
The internal audit department provides independent and objective assurance to help the company accomplish its objectives. It identifies risks, finds better processes, and partners with departments to solve issues. The department reports to the audit committee and develops a risk-based annual audit plan. It audits operations, departments, programs, and processes. The department also receives whistleblower reports and investigates fraud and misconduct.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The components work together to help ensure reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Internal control is important for both management and external auditors, and while it cannot provide absolute assurance, it helps reduce risks of failure to achieve goals.
An internal audit is designed to review what a company is doing in order to identify potential threats to the organization's financial health and profitability and to make suggestions for mitigating the risk associated with those threats.
This document provides an overview of the equity method of accounting for investments. It describes the equity method criteria, accounting procedures, and journal entries. The key points are:
1. The equity method is used when an investor has significant influence over an investee, usually owning 20-50% of the voting shares.
2. Under the equity method, the investment account increases with the investee's earnings and decreases with dividends. Income is recognized based on the investor's share of the investee's earnings.
3. Example journal entries are provided to record an investor recognizing income from and dividends received from an investee under the equity method.
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
1. COSO Enterprise Risk Management (ERM) is a framework that helps companies consistently define and manage risks across the organization. It involves identifying, assessing, and responding to risks in a way that helps the company achieve its objectives.
2. The COSO ERM framework is represented as a cube with four columns of strategic objectives, eight rows of risk components, and multiple levels to describe the enterprise. It includes components like internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication, and monitoring.
3. Control activities are policies and procedures that ensure risks are mitigated, such as separating duties and documentation. Information & communication ensures relevant information is shared to allow people
This document discusses audit risk assessment. It defines audit risk as the risk that an auditor gives an inappropriate opinion when financial statements are materially misstated. Audit risk has three components: inherent risk, control risk, and detection risk. The auditor assesses these risks to determine the nature, timing and extent of audit procedures. A key part of risk assessment is understanding the client's internal controls, including control environment, risk assessment, information and communication, control activities, and monitoring. The auditor documents their understanding of internal controls to help plan the audit and determine appropriate audit strategies.
This document discusses the role of internal auditing in banks. It defines internal auditing as an independent, objective function that evaluates risk management, controls, and governance processes to help an organization achieve its objectives. The document outlines key differences between internal and external auditing. Internal auditing resides within an organization, evaluates a wide range of risks and controls, and reports to the audit committee, while external auditing resides outside the organization and focuses on financial risks and statutory audits. The document also describes internal audit's role in risk-based auditing and reporting, advisory services, and continuous improvement of operations.
The document summarizes IFRS 3 Business Combinations. It outlines that IFRS 3 specifies that all business combinations must be accounted for using the purchase method. It defines key terms like business, acquisition date, and cost of a business combination. It describes how to identify the acquirer, measure assets and liabilities at fair value on the acquisition date, and account for goodwill and negative goodwill. Significant differences from Indian GAAP are also highlighted.
This document summarizes a webinar about COSO's proposed revisions to its Internal Control - Integrated Framework and the implications for information technology. The webinar featured presentations from Ken Vander Wal of ISACA, David Landsittel of COSO, and Cara Beston of PricewaterhouseCoopers. They discussed COSO's project to update the framework to reflect changes in the business environment and technology. The proposed updates include codifying principles, expanding the financial reporting objective, and increasing the focus on operations and compliance. Technology is now embedded in business and affects all aspects of internal control. The updated framework considers how technology impacts risks and controls across the five components. Attendees were encouraged to review and
The document discusses risk-based auditing (RBIA) and its key concepts. RBIA requires internal audit to be strategically linked to an organization's risk management and assurance frameworks. It also discusses applying RBIA methodology to internal audit assignments and linking an organization's risk framework to the stages of RBIA. The document provides information on introducing RBIA to an organization and adapting it based on the organization's structures, processes and risk maturity.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps evaluate and improve risk management, control, and governance processes. Internal audits are important for monitoring business assets, verifying compliance with policies and procedures, and providing objective insight, improving efficiency, evaluating risks, assessing controls, and ensuring legal compliance. The main types of internal audits are compliance, environmental, information technology, operational, and performance audits. The internal audit process involves planning, fieldwork, reporting, and follow-up phases.
This document provides an overview of an internal risk assessment process presentation. It outlines the presentation agenda, which includes discussions of internal control frameworks like COSO and COBIT, risk assessment techniques, risk identification mapping, and the components of internal control. It also details the key aspects of each presentation section, such as defining internal control, its objectives, and management and auditor responsibilities regarding internal control assessment.
POSITION OF INTERNAL AUDIT IN THE CORPORATE FRAMEWORKHaresh Lalwani
This presentation is my endeavor to bring to notice the new position that internal audit enjoys today in the corporate framework, expectations of the industry and emerging opportunities for the professionals.
The document discusses governance and the role of the auditor in governance. It defines governance and describes the auditor's role in providing assurance and oversight of governance processes. The auditor interacts with the audit committee, board, management and shareholders and concerns itself with issues like internal control, risk management and financial reporting. It also discusses the roles of internal, operational and performance audits in public sector governance.
The document discusses internal audit training, including evaluating internal controls, audit approaches, planning and controlling internal audits, performing audits, documenting findings, and reporting. It covers defining internal control systems, the objectives they achieve, types and classifications of controls, control activities, monitoring, and evaluating internal controls. The key topics are organizing an effective internal control system and the internal auditor's role in evaluating controls and audit approaches.
This document summarizes COSO's Enterprise Risk Management - Integrated Framework. It defines ERM as a process run by an organization's board and management to identify potential events, manage risk within the organization's risk appetite, and provide assurance around achieving objectives. The framework identifies 8 components of ERM - internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication, and monitoring. It describes how organizations can implement ERM through risk assessments, determining risk appetite, identifying responses, and ongoing monitoring and oversight. Internal auditors can help by reviewing controls and risk processes and ensuring resources target key risk areas.
This document discusses internal control and compliance. It defines internal control as processes designed by a company's management to reasonably ensure objectives are achieved in operations, financial reporting, and legal compliance. Compliance refers to following orders or rules. The document outlines objectives, standards, elements, and functions of internal control, as well as the role of a bank's internal control and compliance department in monitoring activities and ensuring adherence to regulations.
The document provides an introduction to auditing, discussing the origin of auditing in the 15th century, the evolving concepts of auditing such as its role in ensuring accountability and compliance, and definitions of auditing from various sources. It also covers the objectives of auditing in verifying financial statements and detecting errors and fraud, the differences between bookkeeping, accounting and auditing, and the various types and classifications of audits.
Internal control and Control Self AssessmentManoj Agarwal
The document provides an overview of internal control and control self-assessment. It defines internal control and control self-assessment and discusses the rationale, goals, benefits and case study of control self-assessment. It outlines the COSO internal control framework components of control environment, risk assessment, control activities, monitoring and traditional auditing vs control self-assessment. The presentation also discusses control types, principles of internal control and evaluating controls objectives. It provides a sample control self-assessment template and case study.
This document provides guidance on compiling a Risk and Audit Universe (RAU) which documents an organization's objectives, risks, controls, and necessary audit checks. It discusses starting with an existing Objectives, Risks, and Controls Register (ORCR) and improving it if needed. Key steps include identifying objectives, sources of risks, and methods of identifying risks like interviews, risk workshops, and reviewing accounts and compliance requirements. The document also provides tips on organizing the identified objectives and risks and managing risks through scoring, ownership, and controls. It aims to show how to develop a comprehensive RAU that can be used to plan audits and deliver opinions to management.
The internal audit department provides independent and objective assurance to help the company accomplish its objectives. It identifies risks, finds better processes, and partners with departments to solve issues. The department reports to the audit committee and develops a risk-based annual audit plan. It audits operations, departments, programs, and processes. The department also receives whistleblower reports and investigates fraud and misconduct.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The components work together to help ensure reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Internal control is important for both management and external auditors, and while it cannot provide absolute assurance, it helps reduce risks of failure to achieve goals.
An internal audit is designed to review what a company is doing in order to identify potential threats to the organization's financial health and profitability and to make suggestions for mitigating the risk associated with those threats.
This document provides an overview of the equity method of accounting for investments. It describes the equity method criteria, accounting procedures, and journal entries. The key points are:
1. The equity method is used when an investor has significant influence over an investee, usually owning 20-50% of the voting shares.
2. Under the equity method, the investment account increases with the investee's earnings and decreases with dividends. Income is recognized based on the investor's share of the investee's earnings.
3. Example journal entries are provided to record an investor recognizing income from and dividends received from an investee under the equity method.
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
1. COSO Enterprise Risk Management (ERM) is a framework that helps companies consistently define and manage risks across the organization. It involves identifying, assessing, and responding to risks in a way that helps the company achieve its objectives.
2. The COSO ERM framework is represented as a cube with four columns of strategic objectives, eight rows of risk components, and multiple levels to describe the enterprise. It includes components like internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication, and monitoring.
3. Control activities are policies and procedures that ensure risks are mitigated, such as separating duties and documentation. Information & communication ensures relevant information is shared to allow people
The new CIBSE guide TM56 aims to help engineers assess the whole-life environmental footprint of building services materials and products. It explains that focusing only on energy efficiency ignores other impacts like resource extraction, manufacturing emissions, and end-of-life impacts. While building services make up around 5% of initial embodied carbon for a building, they account for approximately 32% of embodied carbon over a 100-year life cycle due to maintenance, replacement and disposal. Considering whole-life impacts will help reduce costs, volatility, and environmental damage from mining and pollution.
This document provides an introduction and contact information for Erica Hornung, including her email and phone number. It then provides an overview of some early animation techniques throughout history, beginning in the 18th century with devices like the zoetrope, phenakistoscope, thaumatrope, and flip books. It continues into the late 19th century with the praxinoscope and experimental animation techniques.
This document provides a summary of the final report of an evaluation of the project "Capacity development at MoFTs at State and entity level for effective management of public investments PIP-DIP". The project aimed to improve public investment planning processes in Bosnia and Herzegovina by designing integrated planning and budgeting systems. The evaluation found that the project was well-designed and achieved many of its objectives. It strengthened links between planning and budgeting and trained stakeholders. However, fully aligning all public investments with development objectives was only partially achieved. More support is still needed, especially at lower government levels, to fully realize the goal of improved public finance management.
Avid Media Composer es un software de edición de video profesional desarrollado por Avid Technology. Fue revolucionario en 1989 al introducir la edición digital no lineal. Es ampliamente utilizado en la industria del cine, publicidad y televisión para editar proyectos a gran escala como películas y series. Ofrece potentes herramientas para editar, sincronizar y compartir contenido en alta resolución de manera remota y en tiempo real.
Structure - Processing Linkages in Polyethylenedavid_brough1
The document summarizes research using principal component analysis and transfer function modeling to analyze x-ray scattering datasets of polyethylene samples processed under different conditions in order to understand relationships between processing, microstructure, and properties. Dimensionality reduction via principal component analysis was applied to scattering images, and transfer function modeling was used to predict microstructural trajectories and derive processing linkages. Future work proposed extending the analysis to incorporate additional length scales and property linkages.
The document discusses the effect of the strengthening US dollar on Indonesia's capital market. It notes that while Indonesia's stock index, the Jakarta Composite Index, reached a high in April 2015, it has since dropped nearly 8% as several major companies reported lower than expected earnings. It also discusses Indonesia's economic growth slowing to 4.71% in the first quarter of 2015, the lowest in years. The strengthening US dollar has caused the Indonesian rupiah to fall over 5% this year, adding pressure to the capital market.
This document provides an overview of quantum computers, including their advantages over classical computers, key concepts like superposition and entanglement, and the history and current state of quantum computing research and development. It discusses how quantum computers work using quantum bits rather than binary bits to store information, and how companies like D-Wave are developing quantum processors. The timeline details major advances, from early theoretical work in the 1970s-1980s to experimental demonstrations of quantum gates and algorithms in the 1990s-2000s to current multi-qubit systems being researched.
The document discusses virtualization technologies including application virtual machines, virtual environments, and jail virtualization using FreeBSD. It provides steps for creating a FreeBSD jail within a ZFS filesystem for virtualization and isolation of operating system instances. Configuration options are also listed to enable and customize the jail.
This document provides an overview of the key topics covered in the 2016 CISA Review Course, including IS auditor roles and responsibilities, audit planning, risk analysis, internal controls, performing IS audits, and compliance vs substantive testing. The document outlines ISACA standards and guidelines for IS auditing, and frameworks like COBIT 5 that help achieve governance and management objectives for enterprise IT. Methodologies, techniques, and objectives for risk-based auditing are also summarized.
The document summarizes the updated 2013 COSO Internal Control-Integrated Framework, which retains the core definition and five components of internal control from the original framework but includes enhancements and clarifications. The key changes are that the original framework's fundamental concepts are now principles associated with the five components, and all 17 principles must be present and functioning for an effective system of internal control. The document also provides an overview of the 17 principles and related points of focus within the five components of internal control framework.
This document provides a summary of a presentation on performance auditing. The presentation objectives are to understand the landscape of internal auditing, increase ability to work with management, analyze risks, and learn value-for-money approaches. The presentation covers the definition of internal auditing, performance audits, management functions, performance measures, and the International Standards for internal auditing. The benefits of performance audits are that they are relevant, flexible, improve organizational performance, and strengthen governance.
CIA part 1 essentials of internal auditingariundalai1
The Institute of Internal Auditors (The IIA) uses the International Professional Practices Framework (IPPF) to organize its authoritative guidance in a manner that is readily accessible. The IPPF, sometimes called the “Red Book,” is intended to help practitioners and stakeholders throughout the world respond to the expanding market for high-quality internal auditing.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
Effectiveness and efficiency of operations
Reliability of financial reporting
Compliance with applicable laws and regulations
This presentation examines ICs and their effectiveness.
This document discusses various aspects of organizational control. It defines control as monitoring activities to ensure plans are followed and deviations are corrected. There are 4 steps to the control process: 1) establishing standards, 2) measuring performance, 3) comparing performance to standards, and 4) determining if corrective action is needed. Control occurs in different areas like physical, human, and financial resources. It also occurs at different levels like operations, financial, structural, and strategic. Effective control integrates planning, is flexible, accurate, timely, and objective.
Here are the key steps to calculate EVA:
1. Calculate net operating profit after tax (NOPAT) - the profit generated from operations after accounting for taxes.
2. Determine the operating capital employed - the net assets used to generate profits, including working capital and fixed assets.
3. Calculate the weighted average cost of capital (WACC) - the minimum return expected by providers of capital.
4. Compute the capital charge by multiplying the cost of capital by the operating capital.
5. Economic value added (EVA) is calculated as NOPAT minus the capital charge. EVA represents the profit generated above the minimum return required by providers of capital.
So in summary, EVA
This document provides an overview of operational auditing. It defines operational auditing as the evaluation of organizational activities through a future-oriented and systematic review. The objectives and phases of an operational audit are described. Objectives may include addressing new rules, poor performance, compliance issues, or anomalous revenues/expenses. Phases include planning, fieldwork, reporting, and follow-up. Planning involves scoping and risk assessment. Fieldwork determines if controls are designed and performing effectively. Reporting communicates findings and recommendations. Follow-up ensures corrective actions were implemented. Operational audits require diverse skills and provide a flexible way to assess an organization's pursuit of its mission and vision.
Controlling is a fundamental management function that involves monitoring performance, comparing it to standards, and implementing corrections. It ensures organizational activities align with goals. The controlling process establishes standards, measures performance, compares results to standards, and takes corrective actions. Controlling helps improve performance, achieve goals, and adapt to changes through strategic and tactical decisions using various control mechanisms and types of controls.
The most comprehensive definition of internal audit is given by the IIA, USA. It is,
"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes."
The purpose of the presentation is to provide clarification for a better understanding of what internal audit definition, objectives, functions, stages and reporting are all about? What difference does it make in the presence of an external audit? How different is its scope from that of the external audit? How internal audit standards contribute to better performance of internal audit work and its reporting to the Board or Audit Committee?
Organizational control involves establishing standards, measuring performance against those standards, and taking corrective actions. There are different types and levels of control, including strategic control which tracks strategy implementation and operational control which executes strategy. Financial controls use a balance sheet, income statement, and cash flow statement to provide guidelines and allow managers to oversee business success and growth. Non-financial controls measure outcomes not involving finances. Lean control and the balanced scorecard are two examples of non-financial control systems.
Operational risk management revolves around four key elements: controls, monitoring, policies and procedures, and environment. Controls can be preliminary, concurrent, or postaction. Monitoring of controls is important to ensure they remain effective over time. Policies and procedures influence decisions and activities and ensure organizational views are translated into outcomes. Environmental factors like organizational culture also impact operational risk.
The depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors.
The document summarizes the updates made to COSO's Internal Control-Integrated Framework. It describes the project timeline and participants. It provides an overview of the updated Framework, which articulates principles for each of the five components of internal control and clarifies the requirements for an effective system of internal control. It also summarizes the public exposure process and how stakeholder feedback was incorporated into the updates.
Different Controlling Methods and Techniques.pptxmelmortiz1
This document discusses different controlling methods and techniques. It defines controlling as a management function that involves monitoring, comparing, and correcting actions to ensure they are aligned with organizational goals and standards. The document distinguishes between three types of control: feedforward, concurrent, and feedback control. It also discusses financial control methods like budgetary control and ratio analysis. Budgetary control involves planning operations in advance using budgets and comparing actual results. Ratio analysis evaluates financial performance by calculating ratios using information from the statement of financial position and income statement.
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2. DEFINITION OF INTERNAL CONTROL
Internal control is a process, effected by an
entity’s board of directors, management, and
other personnel, designed to provide
reasonable assurance regarding the
achievement of objectives relating to
operations, reporting, and compliance.
3. OBJECTIVES
The Framework sets forth three categories of
objectives, which allow organizations to focus
on separate aspects of internal control:
• Operations Objectives
• Reporting Objectives
• Compliance Objectives
4. OPERATIONS OBJECTIVES
These pertain to effectiveness and efficiency of
the entity’s operations, including operational
and financial performance goals, and
safeguarding assets against loss.
5. REPORTING OBJECTIVES
These pertain to internal and external financial
and non-financial reporting and may encompass
reliability, timeliness, transparency, or other
terms as set forth by regulators, standard
setters, or the entity’s policies.
7. COMPONENTS
Supporting the organization in its efforts to
achieve objectives are five components of
internal control:
• Control Environment
• Risk Assessment
• Control Activities
• Information and Communication
• Monitoring Activities
8. RELATIONSHIP OF OBJECTIVES,
COMPONENTS AND THE ENTITY
A direct relationship exists between objectives,
which are what an entity strives to achieve,
components, which represent what is required to
achieve the objectives, and entity structure (the
operating units, legal entities, and other
structures). The relationship can be depicted in the
form of a cube:
9. • The three categories of
objectives are represented
by the columns.
• The five components are
represented by the rows.
• The entity structure, which
represents the overall
entity, divisions,
subsidiaries, operating
units, or functions,
including business
processes such as sales,
purchasing, production,
and marketing and to which
internal control relates, are
depicted by the third
dimension of the cube.
10. CONTROL ENVIRONMENT
• The control environment is the set of standards,
processes, and structures that provide the basis
for carrying out internal control across the
organization.
• The board of directors and senior management
establish the tone at the top regarding the
importance of internal control including
expected standards of conduct.
• Management reinforces expectations at the
various levels of the organization.
11. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ENVIRONMENT”
Principle 1.
The organization demonstrates a commitment to integrity and
ethical values.
Points of focus:
• Sets the Tone at the Top
• Establishes Standards of Conduct
• Evaluates Adherence to Standards of Conduct
• Addresses Deviations in a Timely Manner
12. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ENVIRONMENT”
Principle 2:
The board of directors demonstrates independence from
management and exercises oversight of the development and
performance of internal control.
Points of Focus:
• Establishes Oversight Responsibilities
• Applies Relevant Expertise
• Operates Independently
• Provides Oversight for the System of Internal Control
13. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ENVIRONMENT”
Principle 3:
Management establishes, with board oversight, structures,
reporting lines, and appropriate authorities and responsibilities
in the pursuit of objectives.
Points of Focus:
• Considers All Structures of the Entity
• Establishes Reporting Lines
• Defines, Assigns, and Limits Authorities and Responsibilities
14. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ENVIRONMENT”
Principle 4:
The organization demonstrates a commitment to attract,
develop, and retain competent individuals in alignment with
objectives.
Points of Focus:
• Establishes Policies and Practices
• Evaluates Competence and Addresses Shortcomings
• Attracts, Develops, and Retains Individuals
• Plans and Prepares for Succession
15. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ENVIRONMENT”
Principle 5:
The organization holds individuals accountable for their
internal control responsibilities in the pursuit of objectives.
Points of Focus:
• Enforces Accountability through Structures, Authorities, and
Responsibilities
• Establishes Performance Measures, Incentives, and Rewards
• Evaluates Performance Measures, Incentives, and Rewards
for Ongoing Relevance
• Considers Excessive Pressures
• Evaluates Performance and Rewards or Disciplines
Individuals
16. RISK ASSESSMENT
• Risk is defined as the possibility that an event will
occur and adversely affect the achievement of
objectives.
• Risk assessment involves a dynamic and iterative
process for identifying and assessing risks to the
achievement of objectives. Risks to the achievement
of these objectives from across the entity are
considered relative to established risk tolerances.
Thus, risk assessment forms the basis for determining
how risks will be managed.
• A precondition to risk assessment is the establishment
of objectives, linked at different levels of the entity.
17. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 6:
The organization specifies objectives with sufficient clarity to
enable the identification and assessment of risks relating to
objectives.
1. Points of Focus for Operations Objectives:
• Reflects Management’s Choices
• Considers Tolerances for Risk
• Includes Operations and Financial Performance Goals
• Forms a Basis for Committing of Resources
18. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 6:
The organization specifies objectives with sufficient clarity to
enable the identification and assessment of risks relating to
objectives.
2. Points of Focus for External Financial Reporting Objectives:
• Complies with Applicable Accounting Standards
• Considers Materiality
• Reflects Entity Activities
19. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 6:
The organization specifies objectives with sufficient clarity to
enable the identification and assessment of risks relating to
objectives.
3. Points of Focus for External Non-Financial Reporting
Objectives:
• Complies with Externally Established Standards and
Frameworks
• Considers the Required Level of Precision
• Reflects Entity Activities
20. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 6:
The organization specifies objectives with sufficient clarity to
enable the identification and assessment of risks relating to
objectives.
4. Points of Focus for Internal Reporting Objectives:
• Reflects Management’s Choices
• Considers the Required Level of Precision
• Reflects Entity Activities
21. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 6:
The organization specifies objectives with sufficient clarity to
enable the identification and assessment of risks relating to
objectives.
5. Points of Focus for Compliance Objectives:
• Reflects External Laws and Regulations
• Considers Tolerances for Risk
22. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 7:
The organization identifies risks to the achievement of its
objectives across the entity and analyzes risks as a basis for
determining how the risks should be managed.
Points of Focus:
• Includes Entity, Subsidiary, Division, Operating Unit, and
Functional Levels
• Analyzes Internal and External Factors
• Involves Appropriate Levels of Management
• Estimates Significance of Risks Identified
• Determines How to Respond to Risks
23. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 8:
The organization considers the potential for fraud in assessing
risks to the achievement of objectives.
Points of Focus:
• Considers Various Types of Fraud
• Assesses Incentive and Pressures
• Assesses Opportunities
• Assesses Attitudes and Rationalizations
24. PRINCIPLES AND POINTS OF FOCUS OF
THE “RISK ASSESSMENT”
Principle 9:
The organization identifies and assesses changes that could
significantly impact the system of internal control.
Points of Focus:
• Assesses Changes in the External Environment
• Assesses Changes in the Business Model
• Assesses Changes in Leadership
25. CONTROL ACTIVITIES
• Control activities are the actions established through
policies and procedures that help ensure that
management’s directives to mitigate risks to the
achievement of objectives are carried out.
• Control activities are performed at all levels of the entity,
at various stages within business processes, and over the
technology environment. They may be preventive or
detective in nature and may encompass a range of manual
and automated activities such as authorizations and
approvals, verifications, reconciliations, and business
performance reviews.
• Segregation of duties is typically built into the selection
and development of control activities. Where segregation
of duties is not practical, management selects and
develops alternative control activities.
26. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ACTIVITIES”
Principle 10:
The organization selects and develops control activities that
contribute to the mitigation of risks to the achievement of
objectives to acceptable levels.
Points of Focus:
• Integrates with Risk Assessment
• Considers Entity-Specific Factors
• Determines Relevant Business Processes
• Evaluates a Mix of Control Activity Types
• Considers at What Level Activities Are Applied
• Addresses Segregation of Duties
27. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ACTIVITIES”
Principle 11:
The organization selects and develops general control activities
over technology to support the achievement of objectives.
Points of Focus:
• Determines Dependency between the Use of Technology in
Business Processes and Technology General Controls
• Establishes Relevant Technology Infrastructure Control
Activities
• Establishes Relevant Security Management Process Control
Activities
• Establishes Relevant Technology Acquisition, Development,
and Maintenance Process Control Activities
28. PRINCIPLES AND POINTS OF FOCUS OF
THE “CONTROL ACTIVITIES”
Principle 12:
The organization deploys control activities through policies that
establish what is expected and procedures that put policies
into action.
Points of Focus:
• Establishes Policies and Procedures to Support Deployment
of Management’s Directives
• Establishes Responsibility and Accountability for Executing
Policies and Procedures
• Performs in a Timely Manner
• Takes Corrective Action
• Performs Using Competent Personnel
• Reassesses Policies and Procedures
29. INFORMATION AND COMMUNICATION
• Information is necessary for the entity to carry out internal control
responsibilities to support the achievement of its objectives.
• Management obtains or generates and uses relevant and quality
information from both internal and external sources to support the
functioning of other components of internal control.
• Communication is the continual, iterative process of providing, sharing,
and obtaining necessary information.
• Internal communication is the means by which information is
disseminated throughout the organization, flowing up, down, and across
the entity. It enables personnel to receive a clear message from senior
management that control responsibilities must be taken seriously.
• External communication is twofold:
– it enables inbound communication of relevant external information
and
– provides information to external parties in response to requirements
and expectations.
30. PRINCIPLES AND POINTS OF FOCUS OF THE
“INFORMATION AND COMMUNICATION”
Principle 13:
The organization obtains or generates and uses relevant,
quality information to support the functioning of other
components of internal control.
Points of Focus:
• Identifies Information Requirements
• Captures Internal and External Sources of Data
• Processes Relevant Data into Information
• Maintains Quality throughout Processing
• Considers Costs and Benefits
31. Principle 14:
The organization internally communicates information,
including objectives and responsibilities for internal control,
necessary to support the functioning of other components of
internal control.
Points of Focus:
• Communicates Internal Control Information
• Communicates with the Board of Directors
• Provides Separate Communication Lines
• Selects Relevant Method of Communication
PRINCIPLES AND POINTS OF FOCUS OF THE
“INFORMATION AND COMMUNICATION”
32. Principle 15:
The organization communicates with external parties regarding
matters affecting the functioning of other components of
internal control.
Points of Focus:
• Communicates to External Parties
• Enables Inbound Communications
• Communicates with the Board of Directors
• Provides Separate Communication Lines
• Selects Relevant Method of Communication
PRINCIPLES AND POINTS OF FOCUS OF THE
“INFORMATION AND COMMUNICATION”
33. MONITORING ACTIVITIES
• Ongoing evaluations, separate evaluations, or some
combination of the two are used to ascertain whether
each of the five components of internal control, including
controls to effect the principles within each component, is
present and functioning.
• Ongoing evaluations, built into business processes at
different levels of the entity, provide timely information.
• Separate evaluations, conducted periodically, will vary in
scope and frequency depending on assessment of risks,
effectiveness of ongoing evaluations, and other
management considerations.
• Findings are evaluated against criteria established by
regulators, standard-setting bodies, or management and
board of directors, and deficiencies are communicated to
management and the board of directors as appropriate.
34. PRINCIPLES AND POINTS OF FOCUS OF
THE “MONITORING ACTIVITIES”
Principle 16:
The organization selects, develops, and performs ongoing
and/or separate evaluations to ascertain whether the
components of internal control are present and functioning.
Points of Focus:
• Considers a Mix of Ongoing and Separate Evaluations
• Considers Rate of Change
• Establishes Baseline Understanding
• Uses Knowledgeable Personnel
• Integrates with Business Processes
• Adjusts Scope and Frequency
• Objectively Evaluates
35. PRINCIPLES AND POINTS OF FOCUS OF
THE “MONITORING ACTIVITIES”
Principle 17:
The organization evaluates and communicates internal control
deficiencies in a timely manner to those parties responsible for
taking corrective action, including senior management and the
board of directors, as appropriate.
Points of Focus:
• Assesses Results
• Communicates Deficiencies
• Monitors Corrective Actions
36. LIMITATIONS OF INTERNAL CONTROL
• Internal control, no matter how well designed,
implemented and conducted, can provide only
reasonable assurance to management and the board
of directors of the achievement of an entity’s
objectives.
• The likelihood of achievement is affected by
limitations inherent in all systems of internal control.
These include the realities that human judgment in
decision making can be faulty and that breakdowns
can occur because of human failures such as making
errors.
• Additionally, controls can be circumvented by two or
more people colluding, and because management can
override the internal control system.