Management of a business is responsible for establishing and maintaining adequate internal controls. This assertion has long appeared in the authoritative literature of the AICPA and SEC. Section 404 of the Sarbanes-Oxley (SOX) Act, requires public companies, and their auditors to annually assess and report on the design and effectiveness of internal control over financial reporting (ICFR). While management of most companies believe that they are maintaining adequate systems of internal controls, it is likely that they will turn to their independent public accountants and internal auditors to review and evaluate such controls.

In this course, we identify the specific goals that should be achieved by the internal accounting controls exercised in each broad area (cycle) of a business. These goals provide specific guidelines against which management and auditors can compare to their existing control techniques.

The broad cycles of a business can be broken down into:

  • Treasury Cycle
  • Expenditure Cycle (Purchasing & Payroll)
  • Conversion Cycle
  • Revenue Cycle
  • Financial Reporting Cycle

Each of these cycles will be presented in a separate training session. Completion of all six sessions will provide the trainee with a certificate in Assessing Business Cycle Accounting Controls.

Course Key Concepts: Internal Accounting Controls, SOX 404, ICFR, Internal Control over Financial Reporting, Independent Public Accountants, Internal Auditors, Business Cycles, Treasury, Expenditure, Purchasing, Payroll, Conversion, Revenue.

Learning Objectives
  • Discover and understand the objectives and limitations of Internal Accounting Controls.
  • Explore the process for assessing Internal Accounting Controls.
  • Recognize the importance of Financial Planning & Control and System Control goals.
Last updated/reviewed: April 25, 2024
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to A Framework for Assessing Business Cycle Accounting Controls8:00
  An Overview of Transactions Systems and Database7:22
  The Cycles of Business Activities7:42
  The Cycles in Detail13:28
  The Concept of Internal Controls7:52
  Internal Accounting Control Best Practices and Goals9:36
CONTINUOUS PLAY
  A Framework for Assessing Business Cycle Accounting Controls54:00
SUPPORTING MATERIAL
  Slides: A Framework for Assessing Business Cycle Accounting ControlsPDF
  A Framework for Assessing Business Cycle Accounting Controls Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
  FINAL EXAMquiz