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Introduction to the Monitoring Component of Coso 2013

Video Transcript:

"Hello, everyone, and welcome in on today's session on COSO 2013. Today we will be focusing on the monitoring aspect of COSO. We have filmed five other segments. One on a total overview of the new COSO 2013 module. The other four have been individually on each of the four different components, and this one will be the fifth on monitoring.

In each of the individual segments, we went further into the principles that underline each of the components of COSO, as well as the points of focus. So, hopefully, you've had a chance to view those. Today, we will go through the monitoring component of COSO. So with that, let's get started.

I am your presenter, Lynn Fountain [SP]. I'm a past chief audit executive of two international companies. I am an experienced subject matter expert and internal audit risk management, internal controls, Sarbanes-Oxley, governance compliance and fraud evaluations. I'm currently authoring a publication for the Institute of Internal Auditors on fraud evaluations for the internal audit group. So, I hope you can look for that, that will be out in early 2015. My contact information is at the bottom of this screen so I welcome you to contact me with any questions that you may have.

As an introduction, COSO's final attribute is monitoring. Now, monitoring is often a very overlooked attribute of COSO, and when COSO developed the 2013 framework, they specifically wanted to focus and to bring more attention to the monitoring attribute.

If you watch the other segments, you'll note that I commented on the switch in the order that they have the various attributes on the front of the COSO cube. So, you can see on the COSO cube monitoring attributes is now at the very bottom of the cube. It used to be at the top. Part of that is just to bring ongoing focus to monitoring. When it was at the bottom of the cube, I would talk about the fact that that seemed logical to me because control environment is a basis where you set and establish all the controls for your organization.

But, monitoring, bringing it to the bottom of the cube, is really to show that it's an important aspect of COSO that you can have all your other processes in place, but if you don't periodically check and monitor for those processes, you may have individual gaps and deficiencies. So, that's why COSO chose to invert the order.

Today, our agenda, as in the past modules, we're going to define monitoring as COSO sees it. We'll look at the various principles that underline the particular monitoring attribute and talk about the points at focus that relate to monitoring. We'll also understand how those points of focus may efficiently transition in your organization, and possibly how you can think about looking at the points of focus in view of how your organization runs, your culture, and a lot of other variables.

We'll also really focus on the design of monitoring attributes, and not just, you know, the execution, but the design and the execution. They have to go together. And, then, we'll talk a little bit about how monitoring supports the other COSO principles that are out there."


Instructor for this course
Course Syllabus
The Monitoring Component
  Defining Monitoring 10:20
  Monitoring Principles3:25
  Principle 1624:38
  Principle 1712:38
  Monitoring as a Support for other COSO Components and Conclusion10.33
Continuous Play
  COSO 2013: Requirements for Complying with the Monitoring Component of COSO1:05:17
  Slides: MonitoringPDF
  Monitoring Glossary/IndexPDF