COSO's 2013 Templates Webinar
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COSO – Templates Internal Control Over External Financial Reporting: A Compendium of Approaches & Examples
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HEAR the AUDIO and SLIDES via: http://web.ganconference.com/?page=REGISTER&meeting=4934442 We’re excited to offer the recorded webinar covering COSO's 2013 Templates. This webinar will provide you with valuable insight into implementing the new framework leveraging proven templates offered by COSO itself. It illustrates with intensive and useful technical detail how COSO's new framework series and vol #4 of their handbook should be implemented at any organization, which is a must see! Register to view the webinar at: http://web.ganconference.com/?page=REGISTER&meeting=4934442
Transcript of COSO's 2013 Templates Webinar
COSO – TemplatesInternal Control Over External Financial Reporting:A Compendium of Approaches & Examples
Agenda• Snap Shot – New Framework• How to use Vol. #4 (ICEFR Template)?• Major Regulatory Changes Impacting ICEFR Vol. #4• Templates by Component• Where to get source documents
New Framework Principles
COSO – Health Check
Recorded COSO New Framework Overview at:http://web.ganconference.com/?page=REGISTER&meeting=6345633
Join 2013 COSO Implementation Group for FREE templates, advise and learn from others implementing this new framework.
Action item before implementation
Compliance Made Simple ©
COSO Implementation
http://www.linkedin.com/groups/COSO-Implementation-4888186/about
Vol. #4 – How To Use It?• Intended Audience = Everyone! (Public, Private, Not-For-Profit
and Gov’t Entities)• How to read “Approaches” and “Examples” (pg.2)• Approaches = summary-level of activities for management• Examples = more specific illustrations to users on application of
each principle and may provide 1 or more points of focus (e.g. attributes of a principle)
• Appendix A - Index of All Examples by Topic (here are a few)1. Expectations for Governance Oversight2. Globalization (FCPA issues page 147!)
• Limitations of Illustrations• Vol #4 does not provide 100% of all examples you need for your
assessment of effective ICEFR (pg. 2)
Considerations of External F/S Reporting (Defining “types”)
Financial Statements Other
Annual & Interim FS Earnings Release
Selected Fin. Info. – Co. Website
Selected $ in Reg. Filings
Materiality Considerations
1. SEC guidance: Top 1 M of Staff Bulletin2. IASB (International Accounting Standards Board): provides a
definition in Paragraph QC11 conceptual framework for financial reporting 2010
Conclusion: Vol #4 notes US and International Standards for definition of materiality (for Mgmt). Both standards are almost identical.
FS - Assertions
Same as in prior COSO guidance materials:• Existence or Occurrence• Completeness• Rights & Obligations• Valuation or Allocation• Presentation & Disclosures
Note: AICPA, PCAOB & International Auditing & Assurance Standards Board agree on the above assertions.
Use of Templates & Documentation• Smaller entities: examples translate well to applications for
smaller entities!• Documentation – 2 Levels:
1. Management’s Documentation efforts must be at a level to state it has “sufficient evidence”.
2. External Auditor Attests on ICFR: Documentation should be at the level an auditor can leverage management’s understanding of Controls.
NOTE: COSO calls out HIGH USE of JUDGEMENT Mgmt. should document how such decisions were considered and the final decisions reached.
Ground Rules – Vol #4Most Effective way to read this volume:1. One Chapters for One COSO Component2. 1st Page of the chapter will always have a) Summary, b) List
of Principles and c) relevant approaches for applying principlesComponent Start page # of Pages
Control Environment
13 36 *
Risk Assessment 49 30 *
Control Activities 79 32
Information Communication
111 28
Monitoring Activities
139 17
* Most significant changes in vol. #4
Control Environment - Template
Where to find it?
Audit Evidence
Principles – 1 to 5 and 20 Attributes
Control Environment - KeyChanges
Risk Assessment - Template• Principles 6 to 9 = 27 attributes
4th quarter Materiality check
too!!!
Control Activities - Template• Principles 10 to 12 = 16 attributes
4th quarter/YE Validation IT Control test!!!
Information & Communication - Template• Principles 13 to 15 = 14 attributes
Information & Communication
Monitoring – Key Changes
Principles 16 to 17 = 10 attributes
Compliance Made Simple ©
Company Overview/Forecast (2 mos. lead time)
SOX Aggregate Impact(3 mos. lead time)
Finance & IT Deliverables Impact assessment(3-4 mos. lead time)
2014 Implementation Lead Time
Control Compliance Analysis
(“CCA”)
Compliance Made Simple ©
MonitoringGuidance (2008)(over 400 pages
in 3 vol. set)
AICPA (2008)Audit Committee Toolkit
(Approx. 7 templates will change)
New 2013COSO (over 500 pages
then 150+ for ICFR guidance)
Where to get other SOURCE Documents?
2013 IllustrativeTools (145 pages)
http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/InternalControls/COSO/PRDOVR~PC-990021/PC-990021.jsp
Action Items before implementation!
ACTION ITEM: Connect with Aviva Spectrum via Slideshare (Hyperlink to this and other ppt files)
Sonia Luna, President, [email protected]
700 S. Flower Street #1100Los Angeles, CA 90017P: (213) 250-5700
Contact Information
Compliance Made Simple ©
