Internal Reporting Control: Financial and Operational Management

Introduction:

Internal financial control systems are crucial for ensuring that accounting procedures, financial policies, and controls are effective while addressing any areas of concern. This course focuses on internal control over financial reporting and aims to enhance your ability to manage fund utilization and detect misuse.

Adhering to laws that ensure the reliability, integrity, and accountability of financial records is essential for any organization and is legally mandated. In this course, you will learn to implement and evaluate an internal control framework for financial reporting by identifying roles, assessing risks, and developing test strategies.

Objectives:

At the end of this internal control over financial reporting course, participants will be able to:

• Perceive and work with ICFR as a systematic process involving all business units.
• Utilize terminology and concepts related to ICFR.
• Specify roles and responsibilities involved in ICFR activities.
• Discuss interactions between operational and financial control roles important for internal financial control reporting.
• Design, build, and maintain an ICFR program that meets internal control objectives.
• Draft a clear and concise ICFR Statement of Assurance with supportive documentation.
• Identify and report internal control requirements within an organization.

Training Methodology:

• Interactive Workshops
• Group Discussions
• Simulations
• Exercises
• Key Note Speakers
• Case Studies

Course Outline:

Unit 1: Internal Control: Legislative Requirements

• Management Accountability Demands
• Introduction to Internal Control Laws
• Building Comprehensive Management of Internal Controls
• Government Agency Program Managers
• Integration of Financial Reporting Requirements and Internal Controls
• Characteristics of Internal Control Systems
• Summary of Internal Control Guidelines

Unit 2: Mandates of the Office of Management and Budget (OMB)

• Role of the Office of Management and Budget in Controlling Internal Financial Reports
• Internal Control Systems and OMB
• Impact of the Sarbanes-Oxley Act on Internal Financial Controls
• Examples of Transactions Leading to Inaccurate Financial Reporting
• Patterns of Practice for Effective Implementation
• Internal Controls Report Assessment and Supporting Documents

Unit 3: Planning the Assessment

• Structuring the Assessment Strategy
• Value of a Governance Body (Senior Management Council)
• Top-Down Strategy for Overall Approach
• Assessing Materiality in Internal Control Over Financial Reporting
• Identifying Major Risk Areas in Financial Reporting Activities
• Documenting the Process
• Coordinating and Integrating Evaluation Activities
• Preparing Strategy on Monitoring and Testing
• Drafting Standard Operating Procedures for Compliance Documentation

Unit 4: Assessment and Evaluation of Internal Control Systems at the Entity Level

• Framework for Entity-Level Internal Control Policy
• Using Internal Control Monitoring and Evaluation Instruments
• Best Practices for Internal Control Systems

Unit 5: Assessment and Evaluation of Internal Control Systems at the Process Level

• Recording Significant Business Activities and Supporting Internal Control Activities
• Essential Reporting Information for Financial Statements Preparation
• Risk Assessment Process for Internal Control Review
• Managing Changes in Risk Levels
• Outlining and Writing Control Requirements
• Process Documentation Templates for Reporting
• Managing External Consultants for Internal Controls
• Dependencies of Internal Controls Financial Reports

Unit 6: Wrapping Up, Reporting, and Addressing Deficiencies and Weaknesses

• Providing a Statement of Assertion on Internal Controls
• Summary, Discussion, and Remedial Actions
• Assessing Adequacy and Completeness of Internal Controls
• Writing a Report
• Recommendations and Guidelines for Addressing Deficiencies