Book description
Ease the transition to the new COSO framework with practical strategy
Internal Control Audit and Compliance provides complete guidance toward the latest framework established by the Committee of Sponsoring Organizations (COSO). With clear explanations and expert advice on implementation, this helpful guide shows auditors and accounting managers how to document and test internal controls over financial reporting with detailed sections covering each element of the framework. Each section highlights the latest changes and new points of emphasis, with explicit definitions of internal controls and how they should be assessed and tested. Coverage includes easing the transition from older guidelines, with step-by-step instructions for implementing the new changes. The new framework identifies seventeen new principles, each of which are explained in detail to help readers understand the new and emerging best practices for efficiency and effectiveness.
The revised COSO framework includes financial and non-financial reporting, as well as both internal and external reporting objectives. It is essential for auditors and controllers to understand the new framework and how to document and test under the new guidance. This book clarifies complex codification and provides an effective strategy for a more rapid transition.
Understand the new COSO internal controls framework
Document and test internal controls to strengthen business processes
Learn how requirements differ for public and non-public companies
Incorporate improved risk management into the new framework
The new framework is COSO's first complete revision since the release of the initial framework in 1992. Companies have become accustomed to the old guidelines, and the necessary procedures have become routine - making the transition to align with the new framework akin to steering an ocean liner. Internal Control Audit and Compliance helps ease that transition, with clear explanation and practical implementation guidance.
Table of contents
- Cover Page
- Title Page
- Copyright
- Contents
- PREFACE
- Acknowledgments
-
CHAPTER ONE: What We All Share
- NEED FOR CONTROL CRITERIA
- OVERVIEW OF THE COSO INTERNAL CONTROL INTEGRATED FRAMEWORK
- HOLISTIC, INTEGRATED VIEW
- REVISED COSO INTERNAL CONTROLS FRAMEWORK
- WHAT WE MUST DO
- BASIC SCOPING AND STRATEGIES FOR MAINTENANCE
- WHERE WE DEPART
- TRIANGLE OF EFFICIENCY
- CONTROLS VERSUS PROCESSES
- THE DEBATE CONTINUES
- ORGANIZATION OF THIS BOOK
- CHAPTER TWO: Setting the Scope of Your Documentation Project
-
CHAPTER THREE: The Risk Assessment Component
- RISK ASSESSMENT PRINCIPLES IN COSO
- COST CONTROL
- BASICS
- LIKELIHOOD, MAGNITUDE, VELOCITY, AND PERSISTENCE
- SEPARATE ASSESSMENTS OF INHERENT AND CONTROL RISKS
- ROLE OF ASSERTIONS
- ASSERTIONS
- PRINCIPLES 6 AND 7: SPECIFY SUITABLE OBJECTIVES; IDENTIFY AND ANALYZE RISK
- IDENTIFYING RISKS
- EXTERNAL SOURCES OF RISK INFORMATION
- INTERNAL AND EXTERNAL REPORTING RISKS
- COMPLIANCE RISKS
- DISCLOSED MATERIAL WEAKNESSES IN RISK ASSESSMENT
- PRINCIPLE 8: ASSESS FRAUD RISK
- AUDITOR RESPONSIBILITY TO DETECT FRAUD
- ANTIFRAUD CONTROLS FOR MANAGEMENT TO CONSIDER
- TIES TO OTHER PRINCIPLES AND COMPONENTS
- PRINCIPLE 9: IDENTIFY AND ASSESS SIGNIFICANT CHANGE
- GATHERING INFORMATION TO SUPPORT THE RISK ASSESSMENT AND CONSIDER CHANGE
- ATTACHMENT 1: AICPA “CPA's HANDBOOK OF FRAUD AND COMMERCIAL CRIME PREVENTION” CODE OF CONDUCT
- ATTACHMENT 2: FINANCIAL EXECUTIVES INTERNATIONAL CODE OF ETHICS STATEMENT
-
CHAPTER FOUR: Control Environment
- PRINCIPLE 1. COMMITMENT TO INTEGRITY AND ETHICAL VALUES
- PRINCIPLE 2. BOARD OF DIRECTORS (GOVERNANCE) DEMONSTRATES INDEPENDENCE FROM MANAGEMENT AND EXERCISES OVERSIGHT OF THE DEVELOPMENT AND PERFORMANCE OF INTERNAL CONTROL
- PRINCIPLE 3. MANAGEMENT ESTABLISHES, WITH BOARD OVERSIGHT, STRUCTURES, REPORTING LINES, AND APPROPRIATE AUTHORITIES AND RESPONSIBILITIES IN THE PURSUIT OF OBJECTIVES
- PRINCIPLE 4. COMMITMENT TO ATTRACT, DEVELOP, AND RETAIN COMPETENT INDIVIDUALS IN ALIGNMENT WITH OBJECTIVES
- PRINCIPLE 5. THE ORGANIZATION HOLDS INDIVIDUALS ACCOUNTABLE FOR THEIR INTERNAL CONTROL RESPONSIBILITIES IN THE PURSUIT OF OBJECTIVES
- CHAPTER FIVE: Control Activities
- CHAPTER SIX: Information and Communication
- CHAPTER SEVEN: Monitoring
- CHAPTER EIGHT: Evidence and Testing
- CHAPTER NINE: Developing Questionnaires and Conducting Interviews
-
CHAPTER TEN: Assessing the Severity of Identified Controls Deficiencies
- IT'S INEVITABLE
- ALIGNMENT OF PUBLIC AND PRIVATE COMPANY STANDARDS FOR ASSESSING DEFICIENCY SEVERITY
- CONTROL DEFICIENCIES AND DEFINITIONS
- KEY FACTORS WHEN ASSESSING THE SEVERITY OF A DEFICIENCY
- CONDITIONS INDICATING CONTROL DEFICIENCIES
- EXAMPLES OF EVALUATING THE SEVERITY OF DEFICIENCIES
- OVERALL ASSESSMENT
- CHAPTER ELEVEN: Reporting Requirements
- CHAPTER TWELVE: Project Management and Tools Assessment Design
- CHAPTER THIRTEEN: Illustrative Forms and Templates
- CHAPTER FOURTEEN: Summing Up
- About the Author
- Index
Product information
- Title: Internal Control Audit and Compliance: Documentation and Testing Under the New COSO Framework
- Author(s):
- Release date: February 2015
- Publisher(s): Wiley
- ISBN: 9781118996218
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