COSO 2013: Getting Internal Control Under Controlnysica.com/uploads/3/4/8/5/34855847/coso_2013...•...
Transcript of COSO 2013: Getting Internal Control Under Controlnysica.com/uploads/3/4/8/5/34855847/coso_2013...•...
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November 22, 2017
COSO 2013: Getting Internal ControlUnder Control
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November 22, 2017 2
COSO 2013
Inter
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November 22, 2017 3
The Agenda
• COSO 2013 in a Nutshell
• How COSO 2013 Can Create Assurance, and Why This is a Good Thing
• How to Make Your Case that COSO 2013 is Either Working in Your Organization, or That Things Need to Change
Inter
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November 22, 2017 4
COSO 2013
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November 22, 2017 5
The Definition
• COSO 2013 IC definition: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.
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November 22, 2017 6
The Five Components
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November 22, 2017 7
The Seventeen Principles
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November 22, 2017 8
Present and Functioning
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November 22, 2017 9
What is Internal Control, Really?
• COSO 2013 IC definition: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.
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November 22, 2017 10
What is Internal Control, Really?
• COSO 2013 IC definition: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.
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November 22, 2017 11
Assurance
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November 22, 2017 12
Is it Present?
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November 22, 2017 13
Does it Function?
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November 22, 2017 14
Making Your Case
Inter
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November 22, 2017 15
Control Environment
1. Demonstrate commitment to integrity and ethical values
2. Exercise oversight responsibility3. Establish structures, reporting lines, authorities
and responsibilities4. Demonstrate commitment to a competent
workforce5. Hold people accountable
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November 22, 2017 16
Risk Assessment
6. Specify appropriate objectives7. Identify and analyze risks8. Evaluate fraud risks9. Identify and analyze changes that could
significantly affect internal controls
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November 22, 2017 17
Control Activities
10.Select and develop control activities that mitigate risks
11.Select and develop technology controls12.Deploy control activities through policies
and procedures
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November 22, 2017 18
Information & Communication
13.Use relevant, quality information to support the internal control function
14.Communicate internal control information internally
15.Communicate internal control information externally
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November 22, 2017 19
Monitoring
16.Perform ongoing and/or periodic evaluations of internal controls
17.Communicate internal control deficiencies
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November 22, 2017 20
Self Evaluation
• Thinking about Internal Control outside of the IC Process
• Does the Report Reflect Reality?