Overview
Every organization, whether a public entity (governmental) or a private sector entity, should establish and maintain an effective system of internal control. An internal control framework helps an entity to run its operations effectively, report reliable information, and comply with applicable laws and regulations.
Objectives
Non-federal organizations, both public and private, that receive federal awards are required by the Code of Federal Regulations (CFR) to choose between two models as their framework for an internal control system. Our Internal Control course fully explains both models.
The 5 components of an internal control system. In the course, you’ll learn the five components of an effective internal control system:
Control Environment is the foundation of internal control.
It includes the culture of the organization, tone at the top, employees with the right knowledge and skills to do their jobs, integrity and accountability.
Risk Assessment occurs after the organization has defined their strategic and operating objectives. Once these objectives are defined, risks to achieving those objectives are assessed. Risks are then evaluated to determine how to respond to the identified risk. This could be to accept, avoid, reduce or share the risk.
Control Activities are those actions management takes to respond to identified risk they want to reduce. Control activities are often implemented in the form or policies and procedures.
Information and Communication involves determining what information is required, assuring data is relevant and from a reliable source, and is properly communicated up, down, and across the organization as well as externally.
Monitoring Activities involves performing reviews of the internal control structure to ensure it is continuing to operate as intended.
These components, which apply to both models, work together to support an entity's mission, strategies, and related objectives.
Each component consists of required principles. The course reviews 17 principles that are associated with the five components. The components and the principles constitute the mandatory elements needed for effective internal control. You’ll gain understanding of how these elements work together, and the potential implications if they are not operating together.
Who should attend?
Government employees, nonprofit organization employees
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