With the recent economic turmoil the world has undergone due to COVID-19, many companies are asking:
• Are our internal controls really needed?
• Are our internal controls too strict?
• Can we do without certain internal controls?
• What’s the worst that can happen if we ignore certain control processes?
Internal Controls (IC) are in place for a reason. They help maintain the control environment and establish efficient and effective processes. They also serve as a mitigation technique for identifying when processes have changed and when procedures need to be adjusted. In today’s business world, all personnel must understand the concept of internal control, how they should be utilized and their benefits.
The purpose and value of internal controls are often misunderstood and misapplied by management. Internal controls should be viewed as a value-oriented activity that assists the organization in the effective execution of its objectives. Properly designed and executed controls are the key to ensuring this view.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following areas:
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with applicable laws and regulations
• Safeguarding assets
Publication Date: August 2022
Designed For
CFO’s, Chief Accounting Officers, Directors of Finance, Legal and Compliance Professionals, all Accounting and Finance professionals, auditors.
Topics Covered
- Defining Internal Control
- Typical Control Types
- Why Controls Fail
- Framework for Controls Identification
- How to Choose The Proper Control Type
- Costs vs. Benefit and Risk Profile
- Evaluating Control Functions
- Testing Controls
- Automated vs Manual Controls
- Automated Controls
- Automated Control Failures
- Preparing to Test Automated Controls
- IT Manual Controls
Learning Objectives
- Identify basic concepts, myths and facts of Internal Controls
- Recognize and apply typical control types
- Identify why controls fail
- Identify a framework to develop the right balance of controls
- Recognize the variances and considerations of automated vs. manual controls
- Identify how to evaluate the concept of IT controls
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Lynn Fountain
Lynn Fountain has over 38 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Lynn has held two Chief Audit Executive (CAE) positions for international companies. In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees. The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.
Ms. Fountain is currently engaged in her own consulting and training practice. She is a highly sought-after trainer and international speaker. In addition, Ms. Fountain has assisted numerous companies with enterprise risk management frameworks, internal audit processes and financial accounting. She also serves as a discussion leader for the AICPA for numerous classes finance, accounting and risk management topics.
Ms. Fountain is the author of three separate technical books. Her first book released in 2015 by the Institute of Internal Auditors Foundation is entitled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. Her second book “Leading the Internal Audit Function” was released in October 2015 by Taylor & Francis Publications. This book serves as the initial launch for a series of leading practice internal audit and information technology publications. Her third book “Ethics and the Internal Auditor’s Dilemma” was released in December 2016.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials.