Controls around the procurement of goods including the purchasing, receiving, and accounts payable processes are important for companies that want to procure goods effectively at fair prices. A clear understanding of the key controls in a process can benefit internal auditors, business managers, and others who want to understand, improve, or audit the process. The course allows participants to become familiar with, or brush up on, internal control definitions and concepts. Participants will also learn the key receiving process activities as well as specific controls related to the receiving process.

Learning Objectives

• Recognize the definition of internal control along with internal control concepts including the continuum of internal controls for businesses, approaches for adding internal controls, and balancing costs of evolving internal control systems.
• Properly identify risk categories including internal and external risk in addition to inherent and residual risk.
• Recognize the typical fraud risk factors as well as the components of the Fraud Triangle and Fraud Diamond.
• Recognize the principles to keep in mind when constructing internal controls as well as the limitations or conceptual failings of internal controls.
• Identify internal control categories including preventative or detective controls and manual or automated controls.
• Recognize the primary steps required to construct a system of internal controls as well as COSOs Internal Control-Integrated Framework and the Sarbanes Oxley Act.
• Properly identify the two primary receiving activities.
• Properly identify the key documents in the receiving process.
• Recognize the process-specific controls related to the receiving process.
• Properly identify additional receiving process considerations and periodic monitoring analysis and other procedures for the receiving process.