Understanding and Creating an Internal Control System 2024

Overview

Successful organizations understand the importance of effective internal controls and develop a system to stay on the intended course. Those who design policies and procedures benefit by knowing why control measures are necessary. First, we’ll examine critical concepts and the importance of strong internal control policies. Then, we’ll look at why standards are needed and control creation methods. Finally, discuss strategies to implement policies and procedures.

Highlights

• Underlying concepts of internal control • Defining where and why controls, policies and procedures are needed • Legacy control measures that are still important for businesses today • Creating control measures that address the use and protection of technology

Prerequisites

A basic understanding of Internal Control concepts.

Designed For

CPAs, accounting and business professionals.

Objectives

• Recognize key internal control concepts, including the four types of internal control: preventive, detective, deterrent and compensating • Recall how they would create strong internal controls • List reasons that control measures are required, such as to deter fraud or reduce operational inefficiencies • Recall the importance of the control environment as implementation efforts are ongoing • Identify three segments of an organization’s technology infrastructure that must be controlled