Over the past several years, the concepts of internal controls have undergone a change. They are still as important as ever but with all the new technology and work habits, it is even more critical that individuals have a strong understanding of controls and how to identify and use them.
Internal Controls (IC) are in place for a reason. They help maintain the control environment and establish efficient and effective processes. They also serve as a mitigation technique for identifying when processes have changed and when procedures need to be adjusted. In today’s business world, all personnel must understand the concept of internal control, how they should be utilized and their benefits.
The purpose and value of internal controls are often misunderstood and misapplied by management. Internal controls should be viewed as a value-oriented activity that assists the organization in the effective execution of its objectives. Properly designed and executed controls are the key to ensuring this view.
A previous course “The Manager’s Responsibility for Internal Control," addressed these concepts at a higher level. This course further explores the types of ICs, how they can be properly utilized and the cost benefit considerations for implementation.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following areas:
- Effectiveness and efficiency of operations
- Reliability of financial reporting
- Compliance with applicable laws and regulations
- Safeguarding assets
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course.
Learning Objective
- Explore basic concepts, myths and facts of Internal Controls (IC).
- Discover typical control types.
- Identify why controls fail.
- Identify a framework to develop the right balance of controls.
- Explore the differences between automated and manual controls.
Last updated/reviewed: March 12, 2024
(0) Reviews
(907 rating)Lesson Questions and Answers0 Questions
INTRODUCTION and OVERVIEW
- Introduction to Identifying and Implementing the Proper Balance of Internal Controls 5:16
- Defining Internal Control 12:38
- Typical Control Types 15:48
- Understanding Controls and Why They Fail 9:40
- Framework for Controls Identification 9:41
- Example 19:37
- How to Choose the Proper Control Type 6:14
- Costs Vs Benefit and Risk Profile 10:41
AUTOMATED CONTROLS
- Evaluating Control Functions 6:04
- Testing Controls 2:57
- Automated vs Manual Controls 1:57
- Automated Controls 4:44
- Automated Control Failures 5:52
- Preparing to Test Automated Controls 9:51
MANUAL CONTROLS
- IT Manual Controls 5:36
CONCLUSION
- Summary 1:16
CONTINUOUS PLAY
SUPPORTING MATERIALS
- Slides: Identifying and Implementing the Proper Balance of Internal Controls PDF
- Identifying and Implementing the Proper Balance of Internal Controls Glossary/Index PDF
REVIEW and TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
Ask the instructor a question about this lesson