Internal Controls to Mitigate Financial Reporting Risk - Designing Stronger Internal Controls for Small or Mid-Size Entities 2.5 CPE

Internal controls are applied within an organization to satisfy objectives related to operations, compliance, and financial reporting. This module will provide practical analysis and tips for how a reporting entity can manage financial reporting risk in an effective and efficient way. This module will also differentiate the auditor’s responsibilities for internal controls under Sarbanes Oxley, Government Auditing Standards and Single Audit Act requirements.

Major Topics:

• Evolution of internal control concepts
• Revamped 2013 COSO Internal Control – Integrated Framework
• Designing an adequate ‘umbrella’ of internal controls over financial reporting to prevent, or detect and correct, material misstatement due to fraud or error
• Specific internal control considerations and sample documentation for smaller entities
• Additional responsibilities for the audits in accordance with the Sarbanes-Oxley Act, Government Auditing Standards and Single Audit Act requirements

Prerequisites

Prerequisite: Experience on basic audit engagements.
Designed For: Accountants who are responsible for evaluating the design or internal controls on financial statement audits, including audits in conformance with various compliance requirements.

Learning Objective

• Discuss the evolution of internal control through the decades.
• Describe the revamped 2013 COSO Internal Control-Integrated Framework, including how the various components and principles interrelate to form a strong system of internal control over reliable financial reporting.
• Identify special considerations for internal controls in a smaller-entity environment.
• Explain important varying audit considerations, such as Sarbanes-Oxley, Government Auditing Standards, and Single Audit Act requirements.

Last updated/reviewed: September 27, 2026