Columbia University Office of Internal Audit Internal Control Highlights

Sujets

• management
• managers

Informations

• Publié par: Orzu
• Nombre de lectures: 26
• Langue: English

Extrait

Internal Control Training

C OLUMBIA U NIVERSITY Office of Internal Audit

Mary Dalecki

March 20, 2009

Welcome

Introduction

Schedule

– 9:30 to 11:30

Breaks

– 10 minute break at 10:30

Format

– Interactive

– Questions encouraged

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Agenda

Welcome- Introduction

What are Internal Controls?

Why Do We Need Controls?

• COSO

• COBIT

Applying Controls in Your Workplace

Q&A

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Internal Controls

What are they anyway?

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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

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Who is responsible for Internal Controls ?

Board of Trustees

Management

All Employees

Internal Auditors? – Internal Auditors evaluate the effectiveness of Internal Controls focusing on finance, operations, systems and compliance

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

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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 to accommodate specific business processes.

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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.

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“COSO ERM Cube”

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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

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Control Activities

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

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