Instilling good governance and ensuring full compliance with an effective internal control program. Presented at Corruption and Compliance South & South East Asia Summit, September 2012, Hilton Hotel, Singapore.
43. 1. segregation of duties
2. retention of records
3. super vision or monitoring
4. information processing
5. authorization of transactions
6. top-level reviews
7. electronic security
8. physical security
48. High Magnitude High Magnitude
Low Probability High Probability
Magnitude of Loss
Low Magnitude Low Magnitude
Low Probability High Probability
Probability of Risk
risk matrix
59. Sales 21.0%
Operations 15.4%
Accounting 15.1%
Exec/Upper Mgmt 14.0%
Purchasing 10.7%
Warehousing/Inventory 4.0%
Finance 4.0%
Customer Service 3.3%
Marketing/Pub Relations 2.9%
Board of Directors 2.9%
Mfg and Production 2.2%
Human Resources 2.2%
Information Technology 1.5%
Internal Audit 0.4%
Research and Dev 0.4%
Legal 0.0%
probability of the risk
60. Exec/Upper Mgmt $829
Board of Directors $800
Legal $566
Purchasing $500
Finance $450
Marketing/Pub Relations $248
Warehousing/Inventory $239
Human Resources $200
Accounting $180
Mfg and Production $150
Operations $105
Research and Dev $100
Sales $95
Information Technology $71
Customer Service $46
Internal Audit $13
magnitude of the loss
61. Exec/Upper Mgmt 10.0
Accounting 3.5
Purchasing 2.8
Operations 1.7
Finance 1.7
Sales 1.1
Warehousing/Inventory 1.0
Board of Directors 1.0
Marketing/Pub Relations 0.4
Customer Service 0.3
Legal 0.2
Human Resources 0.2
Mfg and Production 0.2
Information Technology 0.2
Research and Dev 0.0
Internal Audit 0.0
adjusted risk profile
76. 1. segregation of duties
2. retention of records
3. super vision or monitoring
4. information processing
5. authorization of transactions
6. top-level reviews
7. electronic security
8. physical security
95. 1. segregation of duties
2. retention of records
3. super vision or monitoring
4. information processing
5. authorization of transactions
6. top-level reviews
7. electronic security
8. physical security
101. License and Credits
This presentation, excluding the images, is provided under creative commons attribution license.
http://creativecommons.org/licenses/by/3.0/
You are free to share, copy, distribute, and transmit this work; to remix, adapt this work; and to make commercial use of the work; under the condition that you attribute
this work to me by including the following attribution “Effective Internal Controls by Eric Pesik. Used with permission,” and URL Link:
http://www.slideshare.net/ericpesik/
Microsoft Office Online:
Except as noted below, all images in this presentation are from Microsoft Office Online. Used with permission from Microsoft:
http://office.microsoft.com/en-us/images/
Flickr Creative Commons:
The following images are from flickr creative commons and are licensed and used under creative commons attribution license:
http://creativecommons.org/licenses/by/2.0/deed.en
Art Coffee House Waitress by Wonderlane
http://www.flickr.com/photos/wonderlane/293137892/
Waitress by Adikos
http://www.flickr.com/photos/adikos/4319818916/
Rutherford Grill by Neeta Lind
http://www.flickr.com/photos/neeta_lind/2517034517/
Serving Food by Adrian Nier
http://www.flickr.com/photos/adriannier/4004167201/
Donut Shop Owner by Robert Couse-Baker
http://www.flickr.com/photos/29233640@N07/7104455917/
Two chorizo burritos with cheese and sour cream by Rick
http://www.flickr.com/photos/spine/1994814081/
Waiter by Hans Van Den Berg
http://www.flickr.com/photos/myimage/4353456304/
Blue Telephone by UggBoy♥UggGirl
http://www.flickr.com/photos/uggboy/5345135964/
Association of Certified Fraud Examiners:
All data is from the Association of Certified Fraud Examiners, Report to the Nations on Occupational Fraud and Abuse, 2010 Global Fraud Study based on 1,843 cases
of occupational fraud that were reported by the Certified Fraud Examiners who investigated them. http://www.acfe.com
Committee on Sponsoring Organizations of the Treadway Commission:
The Internal Control — Integrated Framework was commissioned by the Committee on Sponsoring Organizations of the Treadway Commission. It establishes a common
definition of internal control that services the needs of different parties for assessing and improving their control systems. http://www.coso.org