Professional Documents
Culture Documents
December 2011
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Internal Control-Integrated Framework
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Key Concepts Timeless
A process
Effected by people
Provides reasonable assurance
Geared to achievement of objectives related to (1)operations,
(2)compliance and (3)financial reporting
Five components:
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
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Why Update What Works
ICIF works COSOs Internal Control Integrated Framework (1992 Edition)
well today
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Project Plan & Timetable
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Project Participants
COSO
Board of Directors
PwC
Author and Project Leader
AICPA
AAA
IIA Survey of over 700 stakeholders and
FEI users of the 1992 Internal Control
IMA Integrated Framework
Regulatory Observers
Public Accounting Firms
Others (IFAC, GAVI Alliance, ISACA)
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Obtaining Input: Survey of Stakeholders
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Summary of Updates
Whats changed
The experienced reader will find much familiar in the updated Framework,
which builds on what has proven effective in the original version.
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Summary of Updates
A changing business environment... Drives updates to the Framework...
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Summary of Updates
Codification of 17 principles embedded in the original Framework
Control Environment 1. Demonstrates commitment to integrity and ethical values
2. Exercises oversight responsibility
3. Establishes structure, authority and responsibility
4. Demonstrates commitment to competence
5. Enforces accountability
6. Specifies relevant objectives
Risk Assessment
7. Identifies and analyzes risk
8. Assesses fraud risk
9. Identifies and analyzes significant change
10. Selects and develops control activities
Control Activities
11. Selects and develops general controls over technology
12. Deploys through policies and procedures
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Benefits of the Updated Framework
Management
Improve governance and Board of Directors
Expand use beyond
financial reporting
Improve quality of risk
assessment
Strengthen anti-fraud
efforts
Adapt controls to Performance
changing business
needs
Greater applicability for External Other
Confidence
various business models Parties Users
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Public Exposure Process
Primary objective Obtain feedback about whether the updated
Framework will have a positive impact on achieving
effective internal control over operations, reporting and
compliance objectives
When to Comment December 19, 2011 to March 31, 2012
Who can respond Any interested party wishing to express a point of view
relevant to the updated Framework
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Public Exposure Process
Specific areas to provide feedback and to assist respondents in developing view points
Topical Areas Specific Areas to Provide or Consider in Your Commentary
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Questions?
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