This 12 minute video provides an overview for companies that must transition to the 2013 COSO Framework. A four-phase approach is described. In addition, the 17 COSO Framework principles are detailed.
Type of Material:
Best use as a lecture supplement.
Video viewing capabilities.
Identify Major Learning Goals:
To show how the COSO 2013 framework extends the earlier version.
To clarify management's responsibilities for internal control documentation.
To explain the interrelationship of internal control components, principles, and management tools for documenting them.
To explain a four-phase approach for transitioning to COSO’s 2013 ICFR, including 17 principles.
To understand how PWC’s generic mapping template can be used to affirm the 17 principles are relevant, identifying points of focus, mapping of each principle to indirect entity level controls, identifying gaps in internal control design, and developing initial estimate of incremental effort required for the transition.
Target Student Population:
College Upper Division, Graduate School, Professional.
Prerequisite Knowledge or Skills:
Interest in Internal control, or auditing concepts. Interest in Sarbanes Oxley Act (SOX)
The presentation is clear and concise (12 minutes); provides a demonstration of a core concept grounded in the profession; is accurate, and summarizes concepts well. An added feature involves the role of management dealing with the revised framework, and not just external auditors. The presentation is most helpful in that it provides specific elements required for the design of entity level controls and documentation. The inclusion of a sample mapping template is very valuable.
In terms of the “points of focus” section in the template, it was somewhat hard to discern what the “points of focus” actually were in the example, and how they might differ by principle. If more than one principle had been demonstrated with and a few more sentences spoken about how they might be relevant, it would have been a more beneficial discussion.
Potential Effectiveness as a Teaching Tool
The presentation identifies learning objectives, reinforces concepts progressively, builds on prior concepts, and demonstrates relationship between concepts. The presenation is very efficient, in that viewers have the potential to learn much in a short time. In particular, the presentation provides an excellent demonstration showing how the previous COSO framework can be used as a base toward understanding the revisions. The advantage is that moving to the current framework does not require individuals who have some knowledge of the prior COSO model to undo their existing understanding. Finally, the presentation demonstrates relationships between the framework and management’s roles and tasks, exceptionally well.
Ease of Use for Both Students and Faculty
The video/presentation is easy to use, has clear instructions, and is visually appealing. Overall, the pacing of the video is good. The use of a variety of color in the graphics is excellent. The viewer can learn much in a short time regarding the application of the framework regardless of the prior exposure to COSO.
The speed with which the video covers the generic mapping template might result in a viewer failing to fully comprehend it. The fact that the PWC template is one firm's approach and a single example of a tool that management could use may not be readily apparent. However, since the template is not readily available for a detailed review, in some ways the description of the process is less clear than was intended. The presentation would be improved by engaging the user in interactive activities.
Other Issues and Comments:
Great real world application of an important area to which all public corporations must comply.
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