This CPE course covers internal control systems, which are defined as systems for management to control certain risks and therefore help businesses achieve their objectives. It first introduces the Turnbull Report, which covers the importance of internal control and risk management in organizations. While the report is a UK report it can still be applied to all companies. It then examines the Committee of Sponsoring Organizations (COSO) model of internal control consisting of five integrated components which are characterized by 17 principles. It finally investigates the process used to develop an adequate control system, and provides case studies based on real-world events.
▪ Identify control weaknesses and compliance failures
▪ Identify controls to identify, assess and manage risks
▪ Recognize the costs and benefits of maintaining the internal control system
▪ The control environment
▪ Internal control
▪ Purposes of internal control: the achievement of an entity’s objectives, effectiveness and efficiency of operations
▪ Identifying and evaluating control weaknesses
▪ Identifying and evaluating compliance failures
▪ Operational features of control systems, including embedding in organisation’s operations, responsiveness to evolving risks and timely reporting to management
▪ The pervasive nature of internal control and the need for employee training
▪ Costs and benefits of maintaining the internal control system
CGMA exam candidates
Management accountants wanting to develop skills in governance and risk management
Management accounting experience or the equivalent.