Internal Controls Strategies

A Mid to Small Business Guide
 

By Julie Harrar

Effective December 2007 the Securities and Exchange Commission required all publicly traded companies to attest to the effectiveness of their internal controls in accordance with the Sarbanes-Oxley Act. Non-accelerated filers will soon have to comply with this requirement. Small companies have unique issues surrounding internal control. Internal Control Strategies A Mid to Small Business Guide is a clearly written practical book that lays out strategies for creating strong internal programs to meet the needs of these smaller companies. The book starts with an overview of the SEC's guidance, the Public Company Accounting Oversight Board and guidance on a risk-based approach. The coverage of using entity level control to create efficiencies includes an excellent methodology for creating;  a risk assessment process step by step and an effective information and communications program. Scoping and planning are important and the author devotes a chapter with tips for resource planning and developing timelines. The chapters on documentation, testing techniques and remediation cover areas that auditors will appreciate. Internal auditors can demonstrate to other interested readers such as controllers and business managers how they can utilize the strategies provided in this book to implement an effective control environment with their organizations.  If you work for a small or medium size organization this book should be on your reading list as it addresses the subject in a clear, concise and well-organized manner.

JMK 11/08