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 establishing and maintaining an adequate system of internal controls over financial reporting, including the safeguarding of assets against unauthorized use, disposition or acquisition.
Internal control 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 webinar will discuss the requirements for a financial institution when management is required to assess the effectiveness of the bank’s system of internal controls over financial reporting.
What You’ll Learn
The framework established under COSO 2013
Regulatory requirements for banks over $500 million and those over $1 billion in assets
The development of risk and control matrices and how to identify key controls, secondary controls and operating controls
The financial statement assertions that management’s system of internal controls should be designed to support.
Examples and exercises on how to apply financial statement assertions to common banking transactions and sample risk and control matrices will be provided.
Who Should Attend
Individuals seeking to understand management’s responsibility for financial reporting under U.S. GAAP and how to build a framework for documenting and monitoring a bank’s system of internal controls, to include members of management, the board of directors, members of the accounting and internal audit departments.