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This Lecture Covers

This Lecture Covers. Review of Internal Control Definitions. Control. Control. OECD Principles. Internal Control. General Control Frameworks CICA/COCO AICPA/COSO IT Control Frameworks ITCG ISACA (CoBIT) SysTrust They all compete to varying degrees.

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This Lecture Covers

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  1. This Lecture Covers • Review of Internal Control Definitions

  2. Control

  3. Control

  4. OECD Principles

  5. Internal Control • General Control Frameworks • CICA/COCO • AICPA/COSO • IT Control Frameworks • ITCG • ISACA (CoBIT) • SysTrust • They all compete to varying degrees

  6. Internal Control - CICA HB - Section 5200 Management discharges responsibility: • Optimizing use of resources - ensure that reliable info is provided for business policies and monitoring implementation and compliance with the policies • Prevention/detection of error fraud - using cost/benefit • Safeguarding of assets - unintentional exposure • Maintaining reliable control systems - to enhance reliability of financial information

  7. CoCo

  8. AICPA/COSO • 1988 SAS 55 issued for Internal Control • 1995 SAS 78 issued - it embodied COSO model of internal control into standards • 2001 SAS 94 issued - it describes the effect of IT controls on auditor

  9. Committee of Sponsoring Organizations of Treadway Commission • COSO control objectives: - effectiveness/efficiency of operations - reliability of fin. reporting - compliance with applicable laws and regulations.

  10. COSO’s 5 components of Internal Control • Control environment - integrity , ethical values and competence of personnel • Risk Assessment - identifying, analyzing and managing risks • Control Activities - selecting appropriate internal control policies & procedures to address risks and achieve the objectives • Information and communication - enabling the entity's personnel to develop and exchange info needed to conduct, manage and control operations • Monitoring - help determine and report on the effectiveness of I/C procedures

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