Focus and Features

Internal control plays a critical function in meeting business objectives and, in particular, achieving efficient operations, accuracy of financial reports, regulatory compliance and safeguarding of corporate resources. This is true even in the case of a small business. Small business' owners generally believe that they could not design and operationalize a properly working internal control given budgetary and resource constraints, thus, preventing them to achieve business objectives. This wrong notion may be countered with the concept of internal control optimization.

Internal Control Optimization (ICO) involves tailoring controls to meet the specific needs and risks of a small business, leveraging technology, eliminating unnecessary procedures, fostering a culture of compliance, transforming operational controls into value drivers to reduce costs and monitoring. Small businesses should exert all available efforts and explore available opportunities for ICO. Transaction-level controls should be stream-lined and be more integrated while at the same time avoiding duplication of controls. Internal controls should be designed appropriately to the needs of a small business without adding unnecessary burden. These actions, among others, are expected to enable small businesses to achieve their objectives in the sphere of operations, reporting and regulatory compliance.

Premised on the above, this seminar on controls optimization for small businesses is to be conducted.

Course Objectives

At the end of the seminar, the participants are expected to:

• Articulate the conceptual underpinnings of internal control as applied to a small business.
• Understand the risk-based approach to designing effective controls in a small business setting.
• Understand how opportunities for controls optimization are identified and what actions needs to be formulated thereon.

What You Will Learn

Definition, goals and limitations of internal control

Categories of business objectives

• Operational
• Reporting
• Compliance

Internal control structure in a small entity

Components of internal control

• Control environment
• Control environment
• Risk assessment
• Information and communication
• Control activities
• Ongoing monitoring separate evaluations

Risk-based approach to designing controls

• Setting of clear and measurable business objectives
• Identification of risks to achieving the objectives
• Assessment of the likelihood, impact and velocity of risks
• Formulation of risk responses and specific controls
• Addressing fraud risks in a small business

Requirements for controls optimization

• Analysis and optimization of business processes relating to the preparation of management (internal) and accounting reports (external)
• Diagnostics of the existing setup of general computer controls in used information systems of a small business
• Recommendations for enhanced general controls in a small business
• Optimization of manpower considering duties, responsibilities and accountability
• Internal control and accounting system changes
• Formulating action plans to address identified . shortcomings/ Recommen- dations to correct control deficiencies (transaction-level controls)
• Strengthening the control environment to optimize entity-level controls

Evaluation and control testing:

• Self-assessment of internal control system
• Development of testing plans and documentation of controls testing results
• Communication and feedback

Who Should attend

This seminar is ideal for all auditors who wants to learn how internal controls can be used in protecting their assets, as well reduce costs by making sure the right things is done from start.

Number of CPE units: 7

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