- NY Credits : 4.0
- TX Credits : 4.0
Application of COSO for Smaller Companies
The Sarbanes-Oxley Act of 2002, specifically 404, requires all publicly traded companies to assess their internal control on an annual basis. This legislation was passed in response to a critical need to restore the investing public's trust in financial reporting and management of publicly traded companies after the financial scandals of Enron and other organizations.
Upon successful completion of Application of COSO for Smaller Companies, the user should be able to:
identify the COSO Internal Control - Integrated Framework, its background, objectives, and components,
recognize the importance of employing a risk-based approach when developing an effective internal control system,
identify the control environment, its seven underlying control principles, and its importance in developing an effective internal control system,
recognize the importance of risk assessment and the impact different risks can have on an organization,
recognize the importance of using a risk-based approach to identify control activities,
identify the different methods of information communication in organizations and the various types of information that must be captured and distributed,
recognize the basic business models and the activities they illustrate, and
identify the three matrices of the Framework Evaluation Tools and explain how each matrix links financial statement accounts to risk factors, financial statement assertions, business processes, and IT applications.