Columbia University Office of Internal Audit Internal Control Highlights

Sujets

• management
• managers

Informations

• Publié par: Fuwyang
• Nombre de lectures: 23
• Langue: English

Extrait

Internal Control Training

C OLUMBIA U NIVERSITY Office of Internal Audit

Mary Dalecki

October 22, 2007

Agenda

Welcome- Introduction

What are Internal Controls?

Why Do We Need Controls?

• COSO

• COBIT

Applying Controls in Your Workplace

Q&A

October 22, 2007

Page 2

Welcome

Introduction

Schedule

– 2:30 to 4:30

Breaks

– 10 minute break at 3:30

Format

•Interactive

•Questions encouraged

October 22, 2007

Page 3

Internal Controls

What are they anyway?

October 22, 2007

Page 4

Internal Controls

Internal control is defined as a process or activity designed to provide the achievement of objectives in the following:

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Effective and efficient operations.

Reliable financial reporting.

Compliance with laws and regulations.

October 22, 2007

Page 5

Who is responsible for Internal Controls ?

Board of Trustees

Management

All Employees

Internal Auditors? – Internal Auditors evaluate the effectiveness of Internal Controls

External Auditors? – Provide independent assessment on the reasonableness of Columbia’s financial reports

October 22, 2007

Page 6

Key Concepts

Internal control depends onpeople -People at every level are accountable and responsible for their own processes and transactions.

Managers are responsible for implementing policies & procedures. They monitor how well policies and procedures are adhered to.

Sometimes managers have to design their own controls.

October 22, 2007

Page 7

COSO

The Committee of Sponsoring Organization (COSO) of the Treadway Commission is a private sector commission established in 1985 by five financial professional associations.

COSO studied reasons that led to fraudulent financial reporting and developed recommendations for public, private and government entities.

October 22, 2007

Page 8

“COSO ERM Cube”

October 22, 2007

Page 9

COSO Components

Administration

• Control Activities

• Information and Communication

• Monitoring

Middle & Senior Level Management

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Internal Environment

Objective Setting

Risk Assessment

Event Identification

Risk Response

October 22, 2007

Page 10

Control Activities

Control activities occur throughout the organization at all levels and in all functions. They can be defined by policies and implemented through procedures.

October 22, 2007

Page 11