1. Chapter 6
Internal Control

2. Chapter 6 Learning Objectives
Understand what is meant by internal control in a variety of frameworks.
Identify the objectives, components, and principles of an effective internal control framework.
Know the roles and responsibilities each group in an organization has regarding internal control.
Identify the different types of controls and the appropriate application for each of them.
Obtain an awareness of the process for evaluating the system of internal controls.
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

3. Exhibit 6-1
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

4. Exhibit 6-2
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

5. Exhibit 6-3
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

6. Exhibit 6-4
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

7. Exhibit 6-5
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

8. Exhibit 6-6
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

9. Exhibit 6-7
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

10. Exhibit 6-8
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

11. Exhibit 6-9
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

12. Exhibit 6-10
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

13. Exhibit 6-11
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

14. Exhibit 6-12
10 OPPORTUNITIES FOR THE INTERNAL AUDIT DEPARTMENT TO PROVIDE INSIGHT ON EFFECTIVE INTERNAL CONTROL
Help the organization develop a comprehensive framework for assessing the adequate design and effective operation of internal control.
Help management establish a logical structure for analyzing, documenting, and assessing the organization’s design and operation of internal control.
Help the organization develop a process for identifying, evaluating, and remediating internal control deficiencies.
Provide independent assurance on the adequate design and effective operation of internal control.
Act decisively when potentially significant or material internal control changes or deficiencies are identified.
Assist in postmortem analysis when internal control deficiencies occurs.
Inform management of potential breakdowns in internal control that present increased risk to the organization.
Assist management in developing a culture of ethical behavior (“tone at the top”) and low tolerance of ineffective internal control.
Stay abreast and inform management of emerging issues, regulations, and laws related to the effectiveness of internal control.
Provide internal control awareness training throughout the organization.
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

15. Add slides as desired
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.