- Format:Webinar
- Education Type:BCU Webinars
- Line of Authority:N/A
- Language:N/A
- Credit Hours:N/A
Management is responsible for preparing financial statements in accordance with U.S. GAAP. In taking responsibility for the preparation of financial statements, management both implicitly and explicitly asserts that the financial statements:
• contain information on transactions that actually occurred
• that the amounts fairly represent the realizable values of assets or amounts of obligations owed, and
• that the transactions were reported in the proper accounting period.
Management is also responsible for assessing risk across the enterprise and maintaining an adequate system of internal controls to manage risk and ensure accurate financial reporting, including the safeguarding of assets against unauthorized use, disposition or acquisition.
Internal control risk assessment systems, or frameworks, are guided by concepts developed to provide a level of assurance that the controls established will prevent or detect errors or fraud that would cause the financial statements to be misstated and therefore not providing reliable, accurate and complete information.
This 2-part webinar will discuss the requirements for a financial institution when management is required to assess risk and the effectiveness of the bank’s system of internal controls over financial reporting. Enterprise risk management will be covered to provide participants with an overview of this very important risk management function.
What You'll Learn
Part 1 will cover the concept of internal control and enterprise risk management frameworks established under COSO 2013 and 2017, respectively, and will take a look at the new Global Internal Audit Standards that serve as a basis for evaluating the quality of the internal audit function. This part will cover the regulatory requirements for banks over $500 million in assets and those over $1 billion in assets related to the areas requiring oversight by management, the Board of Directors, and members of the internal audit team.
Part 2 will focus management’s financial statement assertions regarding the accuracy of the financial statements and the link between those assertions and the development of risk and control matrices. The difference between key controls, secondary controls and operating controls will be discussed. Also provided in Part 2 are several working documents related to building an internal control framework. These documents can provide the participant with a road map on how to navigate the process for documenting a system of internal controls that will support management’s financial statement assertions. Also, examples and exercises on how to apply financial statement assertions to common banking transactions and sample risk and control matrices will be provided.
