In this session (Part I), we cover the basic principles, core concepts, and key component parts of an internal accounting controls system (IACS).We first discuss IACS from key stakeholders’ (management, staff, and Board) points of view. We then look at IACS from ten key control areas pointing out purpose and control challenges for each of the ten areas. We also touch on the importance of the integration of technology and policies, building and maintaining operating reserves, and regular training and documentation.

In this session (Part II), we will explore how perception and organizational culture play an important role in establishing and maintaining effective internal controls. We than will discuss how to derive the most benefits from segregation of duties and how to consider capacity risks and impact on an organization. We will finish by looking at how financial reporting is an important part of IACS and the advantages of providing formal written responses to audit management letters when findings appear.