Understanding and Creating an Internal Control System

Overview

Successful organizations, both large and small, must understand the importance of effective internal controls and be able to develop a system of controls that will keep the entity on its intended course. Moreover, those that design policies and procedures, benefit by knowing why control measures are necessary. This session sets forth internal control concepts and explains the importance of strong internal control policies. The material highlights some of the reasons that measures are needed and it also provides an overview of control creation methods. Finally, it discusses ways to successfully implement the developed policies and procedures. Participants that take this course will gain a well-rounded understanding of internal control procedures of all types.

Highlights

This session is taught via the use of case studies adapted from real world examples. The topics discussed in this session include: Underlying concepts of internal control. Defining where and why controls, policies and procedures are needed. Legacy control measures that are still important for businesses today. Creating control measures that address the use and protection of technology.

Prerequisites

A basic understanding of Internal Control concepts

Designed For

Accounting and other business professionals that would like to have an understanding of internal controls for business entities.

Objectives

Once participants have completed this session, they should be able to: Understand key internal control concepts, including the four types of internal control: preventive, detective, deterrent and compensating; Explain how they would create strong internal controls; List reasons that control measures are required, such as to deter fraud or reduce operational inefficiencies; Explain the importance of the control environment as implementation efforts are ongoing, and List three segments of an organizations’ technology infrastructure that must be controlled.