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Internal Control

Whether you are an auditor assessing internal control at your client, a preparer signing off on controls, a board member assessing organizational exposure, or a small business owner concerned with minimizing fraud, AICPA is committed to providing the information and tools you need to understand internal control issues. In addition to our own publications, we are proud to serve as the publishing partner to COSO and committed to the mission of providing guidance and tools to serve our members in every area of the profession.

Expert Advice on Internal Control 

The AICPA recently issued a white paper, “Understanding Internal Control and Internal Control Services,” that explains the concepts of internal control (specifically internal control over financial reporting) and the types of services related to internal control that may be performed by practitioners in public practice. Now that auditors may no longer default to maximum control risk, there is a growing need to better understand the concepts of internal control and, specifically, internal control over financial reporting. In addition, even if a practitioner in public practice does not performs audits but performs reviews and compilations, that practitioner must still understand internal control due to the independence ramifications. This whitepaper is intended to address confusion among practitioners on the topic. Download the white paper.

Spotlight

Guidance on Monitoring Internal Control Systems Guidance on Monitoring Internal Control Systems
The culmination of two years of expert critical debate, the guidance brings together leading practices at large and small organizations and provides in-depth guidance for implementing the monitoring component of COSO's Internal Control—Integrated Framework.
Current Economic Instability: Accounting Issues and Risks for Financial Management and Reporting—2010 Current Economic Instability: Accounting Issues and Risks for Financial Management and Reporting-2010
This Financial Reporting Alert is intended to be used by members of an entity’s financial management, board members and audit committee to identify and understand current accounting and regulatory developments affecting the entity’s financial reporting. This alert is intended to help you achieve a more robust understanding of the economic and business environment in which your entity operates and is also an important tool in helping you identify the significant risks that may result in the material misstatement of your entity’s financial statements.

This Guide provides the latest information on the use of audit sampling. It reflects changes in sampling brought about by the risk assessment standards . This edition of the guide has been conformed to reflect the Defining Professional Requirements standard (SAS No. 102), and includes guidance on communicating internal control related matters. This guide also includes expanded guidance on the application of sampling to tests of controls and substantive test of details, including determining the sample size and evaluating sample results, as well as guidance on following nonstatistical and statistical audit sampling approaches.

This landmark report was commissioned by the Committee on Sponsoring Organizations of the Treadway Commission (COSO). It establishes a common definition of internal control that services the needs of different parties for assessing and improving their control systems.

In response to a need for principles-based guidance to help entities design and implement effective enterprise-wide approaches to risk management, COSO issued the Enterprise Risk Management – Integrated Framework in 2004. This framework defines essential enterprise risk management components, discusses key ERM principles and concepts, suggests a common ERM language, and provides clear direction and guidance for enterprise risk management. The guidance introduces an enterprise-wide approach to risk management as well as concepts such as: risk appetite, risk tolerance, portfolio view. This framework is now being used by organizations around the world to design and implement effective ERM processes.

This COSO document contains guidance targeted towards smaller public companies, to help them apply concepts in the 1992 Internal Control – Integrated Framework. The guidance demonstrates the applicability of those concepts to help smaller public companies design and implement internal controls to support the achievement of financial reporting objectives. It highlights 20 key principles of the 1992 framework, providing a principles-based approach to internal control. While targeted toward smaller public companies, the 2006 guidance applies to entities of all sizes and types.

Permission to Reuse Content 

If you would like to reprint or reuse material from an AICPA or COSO publication,  AICPA Rights and Permissions is available to assist you.

Multiple User Licenses 

We understand that your needs may extend beyond personal use of a publication. Many AICPA publications can be delivered in electronic form under multiple user licenses. Our Licensing Team is available to assist you with understanding available products and terms.

Featured Products 


COSO Enterprise Risk Management -- Integrated Framework (2004)

This 2004 COSO document provides a benchmark for organizations to consider when evaluating and improving their enterprise risk management (ERM) processes.


Financial Reporting Fraud: A Practical Guide to Detection and Internal Control - 2nd edition

This guide, written by a CPA for CPAs in both public practice and industry, provides the knowledge necessary to minimize fraud exposure for the CPA, the employer, and the client.

Publish With AICPA! 

Did you know that AICPA Publications accepts proposals from and publishes the work of thought leaders on Internal Control topics? For information about our publishing program and how to submit a book proposal e-mail acquisitions@aicpa.org.
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