Columbia University Office of Internal Audit Internal Control Highlights

Internal Control TrainingCOLUMBIA UNIVERSITY Office of Internal AuditMary DaleckiOctober 22, 2007Agenda Welcome- IntroductionWhat are Internal Controls? Why Do We Need Controls? •COSO•COBITApplying Controls in Your WorkplaceQ&AOctober 22, 2007 Page 2WelcomeIntroductionSchedule– 2:30 to 4:30Breaks– 10 minute break at 3:30Format•Interactive•Questions encouragedOctober 22, 2007 Page 3Internal Controls What are they anyway?October 22, 2007 Page 4Internal ControlsInternal control is defined as a process or activity designed to provide the achievement of objectives in the following: – Effective and efficient operations. – Reliable financial reporting. – Compliance with laws and regulations. October 22, 2007 Page 5Who is responsible for Internal Controls ?Board of TrusteesManagementAll EmployeesInternal Auditors? – Internal Auditors evaluate the effectiveness of Internal ControlsExternal Auditors?– Provide independent assessment on the reasonableness of Columbia’s financial reportsOctober 22, 2007 Page 6Key ConceptsInternal control depends on people - People at every level are accountable and responsible for their own processes and transactions. Managers are responsible for implementing policies & procedures. They monitor how well policies and procedures are adhered to.Sometimes managers have to design their own controls. October 22, 2007 Page 7COSOThe Committee of Sponsoring Organization (COSO) of the Treadway Commission is ...