Internal Control Audit and Compliance: Documentation and Testing Under the New Coso Framework Hardcover - 2015

From the rear cover

Prior to 1992 when the National Commission on Fraudulent Financial Reporting published Internal Control--Integrated Framework, there were no broad set of criteria against which to evaluate the effectiveness of the auditing entity in controlling its risk of filing materially false financial information and preventing other types of fraud. The COSO Framework filled that void.

Internal Control Audit and Compliance offers auditors, controllers, and accounting managers a comprehensive guide to the latest framework established by the Committee of Sponsoring Organizations (COSO). Written by Lynford Graham--a noted expert on the topic--this important resource offers clear explanations and expert advice on implementation and shows how to document and test internal controls over financial reporting.

The COSO internal control framework identifies five components of internal control: control environment; risk assessment; control procedures; information and communication; and monitoring. Each component has a relationship with and can influence the functioning of every other component, operating in an almost organic way. While these five components remain unchanged, the level of detailed guidance over the years has increased due to the more recent widespread implementation of the framework in the business environment and a desire to have more consistency in the application of COSO principles. Internal Control Audit and Compliance includes detailed information covering each element of the revised framework and puts the emphasis on the latest changes. The author includes explicit definitions of internal controls and shows how they should be assessed and tested. The updated COSO framework also includes financial and non-financial reporting, as well as both internal and external reporting objectives, and Internal Control Audit and Compliance clarifies complex codification.

The newly revised framework identifies seventeen new principles, each of which are explained in detail to help clarify the new and emerging best practices that are designed to enhance efficiency and effectiveness.

To ease the transition from the older and outdated guidelines, Graham reveals an effective strategy for incorporating the new framework into day-to-day operations and offers step-by-step guidance for implementing the new changes.