This session is designed to focus on the Risk Assessment component and the four separate principles that support this component.
Risk Assessment involves a dynamic and iterative process. It considers changes in the external environment/business model that may impede achievement of objectives. Every entity faces a variety of risks from both internal and external sources. Risk assessment forms a basis by which risk will be managed.
COSO 2013 maintained the same five components previously identified within the 1992 framework. These include: • Control Environment • Risk Assessment • Control Activities • Information & Communication • Monitoring
This session is designed to focus on the Risk Assessment component and the four separate principles that support this component.
• The organization must specify objectives with sufficient clarity to enable the identification of risks relating to the objective.
• The organization identifies risks to the achievement of its objectives across the entity and analyzes risks as a basis for determining how the risks should be managed.
• The organization considers the potential for fraud in assessing risks to the achievement of objectives.
• The organization identifies and assesses changes that could significantly impact the system of IC.
Management and the external auditors must understand each of these principles and be able to adequately support that they exist, are appropriately designed, and function. In addition, the components must effectively work in combination to provide for a positive attestation to internal controls.
The session will dissect the four principles and important concepts that companies need to understand and support in order to provide that the Risk Assessment principles are in place and functioning. We will also discuss concepts related to mapping the principles to controls within the organization.
Field of Study: Auditing
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
