INTERNAL CONTROLS COMPLYING WITH SARBANES – OXLEY ACT SECTION 302 AND 404

INTERNAL CONTROLS COMPLYING WITH SARBANES – OXLEY ACT SECTION 302 AND 404

Bandung  | 3 & 4 September  2012  | Rp 2.950.000,- 
Jakarta | 6 & 7 September 2012 | Rp 2.950.000,- 
Yogyakarta | 10 & 11 September 2012 | Rp 2.950.000,- 
Surabaya | 17 & 18 September 2012 | Rp 2.950.000,- 
Denpasar | 24 & 25 September 2012  | Rp 3.950.000,-
Bandung  |  1 & 2 Oktober  2012  | Rp 2.950.000,- 
Jakarta  |  4 &5 Oktober 2012 | Rp 2.950.000,- 
Yogyakarta  | 8 & 9 Oktober 2012 | Rp 2.950.000
Surabaya | 15 & 16 Oktober 2012 | Rp 2.950.000,- 
Denpasar | 22 & 23 Oktober 2012  | Rp 3.950.000,- 
Jakarta  |  1 & 2 Nopember 2012 | Rp 2.950.000,- 
Bandung  |  5 & 6 Nopember  2012  | Rp2.950.000,- 
Yogyakarta  | 12 & 13 Nopember 2012 | Rp 2.950.000,- 
Surabaya | 19 & 20 Nopember 2012 | Rp 2.950.000,- 
Denpasar | 26 & 27 Nopember 2012  | Rp 3.950.000,
Bandung  | 3 & 4 Desember  2012  | Rp 2.950.000,-
Jakarta |  6 & 7 Desember 2012 | Rp2.950.000,-
Yogyakarta | 10 & 11 Desember 2012 | Rp 2.950.000,-
Surabaya | 17 & 18 Desember 2012 | Rp 2.950.000,- 
Denpasar | 27 & 28 Desember 2012  | Rp 3.950.000,- 

ABOUT THE COURSE

Bankruptcy of variousUSAcompanies such as Enron, WorldCom, etc. has already brought business environment into the corporate government issues, the disclosure of financial statements including disclosure of social and business responsibilities of the companies as well.  The bankruptcies of these companies were triggered by negative results of their accounting systems and behaviour of their managements.  Resonance of the downfall of theUScompanies has influencedIndonesiacompanies; especially some companies have listed at New York Stock Exchange.  OtherIndonesiapublic companies, however, have relation to this event indirectly because Capital Market Executive Agency (Bapepam) also has adopted the act called the Sarbanes-Oxley Act of 2002 as released by StockWatch onJune 19, 2003.

AfterwardsUSgovernment approved the Sarbanes-Oxley Act of 2002 (SOX) instead of the Original ’33 and ’34. The act is intended to reform public accounting practices and corporate governance, and to keep capital market management straight.  There are two sections: 302 and 404 that have close relations to good corporate governance practices.  Section 302 (Corporate Responsibility For Financial Reports) requires quarterly certification of financial statements by CEO (Chief Executive Officer) and CFO (Chief Financial Officer), also CEO and CFO have to certify completeness and accuracy of 34 Act filings, and CEO and CFO certify to the effectiveness of internal control. Likewise, section 404 (Management Assessment of Internal Controls) requires annual affirmation of management’s responsibility for internal controls over financial reporting. The section also necessitates that management must attest to effectiveness based on an evaluation, and auditor must attest and report on management’s evaluation.

Based on these sections of the SOX, every business process must be equipped by risk-control matrix relationships. It means that the business process always consists of one or more risks, and then every risk should be controlled in order to mitigate its impact.  On one hand, if the risks are not controlled, the business process will be threatened to become ineffective and inefficient, and eventually the disclosure of financial reporting will be inconsequential.  On the other hand, implementation of the control should be evaluated regularly to assess its effectiveness. For this reason, a company should empower its internal auditors in order to audit the implementation of its internal control, especially internal control over financial reporting (ICOFR).

By course end participant should be able to:

•  Understanding Internal Control-Integrated Framework COSO version
•  Identifying business process
•  Defining risks involving in the business process
•  Defining controls relating to the risks
•  Assessing effectiveness of internal control design
•  Assessing effectiveness of internal control operation
•  Understanding CSA (Control-Self Assessment)
•  Understanding system review/ walkthrough and test of control
• Classifying findings of internal control weaknesses into significant deficiency and material weakness

SUBJECT LEARNED

•  Background of Sarbanes-Oxley Act of 2002
•  Concepts of Internal Control-Integrated Framework COSO version
•  How to develop business processes referred to Internal Control Concepts
•  Implementation of Internal Control
•  Evaluation of the implementation of Internal Control: CSA and Auditing
•  Acknowledgement Audit Standard # 2 PCAOB (Public Company Accounting Oversight Board) version
•  Methodology of Internal Control Auditing

YOU WILL LEARN HOW TO

•  Develop business process considering risks and their controls
•  Assess magnitude of risks and how effective should the control mitigate them
•  Analyze and evaluate effective internal control
• üAssess effectiveness of internal control design and operation
•  Assess level of compliances of internal control to the used regulation
•  Improve the business process including its internal control based on audit/ assessment results

BENEFITS

•  Make a company healthy
• Bring a company up in controlling so this will be rising effectiveness and efficiencies in operations
•  Make company’s human resources controllable
•  Hinder financial reporting misstatements

COURSE CONTENT

I.    Acknowledgement of Sarbanes-Oxley Act 2002 (SOX)

• Background: Cases of Enron and WorldCom, etc.
• Philosophy of SOX
• Sections related to global business (Section 302 and 404)

II.   Internal Control-Integrated Framework COSO version

• About COSO
• Internal Control of COSO
• Risk Concepts (EnterpriseRisk Management)
•  Implementation of ICOFR

III.  Evaluation of Implementation of Internal Control

• Control Self Assessment
• Risk-Based Audit
•  ICOFR Audit

IV.  Audit ICOFR

• System Review/ Walkthrough
•  Test of Control
•  Level of effectiveness of ICOFR Design
•  Level of Compliances of ICOFR Operation
•  Conclusion of Audit

DURATION

2 (Two) Days

LANGUAGE OF INSTRUCTION

Indonesian