My experience over the last several years in corporate governance and internal audit finds that developing a culture of respect in the workplace is critical for a strong control environment. You can even find that expressed right in the COSO Internal Control Framework: “Control environment factors include the integrity, ethical values, and competence of the […]
Internal Controls
Posted inInternal Controls
Auditing in the Clouds, Coming Down to Earth
“The cloud” appears to be the next big thing in Corporate America, with advocates touting its potential to simplify IT infrastructure and lower costs. Cloud computing provides a way for companies to outsource everything from data storage to powerful service applications, paying only for what they use, scaling rapidly, and cutting IT costs in the […]
Posted inAccounting & Auditing
Internal Auditors Reminded to Check ‘Soft’ Controls
The Institute of Internal Auditors has published a practice aid that serves as a kind of mid-year reminder to internal auditors to assure a company’s governance is rooted in the those critical intangibles—integrity and ethics, for example—that steer people in the right direction. The practice guide, titled “Auditing the Control Environment,” is a compilation of […]
Posted inInternal Controls
Recession Didn’t Harm Controls, Companies Say
Internal controls are apparently no worse for the wear following economic crisis, and for nearly half of companies they may even be stronger, according to a new poll from consulting firm Protiviti. Nearly 90 percent of finance and audit executives who participated in the survey said their Sarbanes-Oxley compliance efforts suffered no ill effects from […]
Posted inInternal Controls
How to Handle Internal Investigations
Internal investigations are a critical component of a robust compliance program; without the ability to investigate allegations of wrongdoing, your company’s credibility with regulators is pretty much sunk. At Compliance Week 2011, a trio of compliance professionals shared their approaches. First, because the circumstances of each case are unique, the compliance officers on the panel […]
Posted inAccounting & Auditing
Improving Risk Assessments and Audit Operations
At companies where internal audit and risk processes are maturing, they are now honing their operations to become more efficient and effective. It all starts with strong, open, trusting relationships that enable internal auditors to act less like cops and more like business advisers, John Barresi, vice president of internal audit and financial controls at […]
Posted inInternal Controls
SEC Publishes Study on Auditing Internal Controls
The staff of the office of the chief accountant of the Securities and Exchange Commission published its study on April 22, as required under the Dodd-Frank Act, examining Section 404(b) of the Sarbanes-Oxley Act, which requires public companies’ auditors to report on, and attest to, management’s assessment of its internal controls. The 118-page release […]
Posted inInternal Controls
The ‘Mundane’ World of Internal Control
For many executives, the topic of internal control conjures up images of details deep in the corporate infrastructure best left to staff with green eyeshades and pocket protectors (if such gear actually still exists). Unfortunately, misunderstandings persist regarding what internal control is all about and its relevance to achieving critical business objectives. We focus here […]
Posted inInternal Controls
Case Study: Tyco International’s Centralized EH&S Audits
The regulatory and compliance difficulties that accompany a single merger are challenging enough. Now imagine the hurdles that arise when acquiring hundreds of companies in the course of just a few years. Add in the regulatory scrutiny that comes in the wake of a massive accounting scandal, and you have the mess that Tyco International […]
Posted inInternal Controls
COSO Commissions Update for Internal Control Framework
The COSO framework that forms the basis for much of Corporate America’s internal control is getting a makeover. The Committee of Sponsoring Organizations of the Treadway Commission said it is getting started on a project to review and update its “Internal Control – Integrated Framework,” which most public companies have followed for years to establish […]
