Description
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)
- Expenditure Cycle (Payroll)
- Conversion Cycle
- Revenue Cycle
- Financial Reporting Cycle
- + Plus the oversight function of Financial Planning and Control
Each of these cycles will be presented in a separate training session.
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.
