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

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

PEMBICARA

Ir. Lukman Abdurrahman, MIS, QIA

Ir. Lukman Abdurrahman, MIS, QIA is a senior auditor of Internal Auditor Department of PT. TelekomunikasiIndonesia, tbk. inBandung. Mr. Lukman has worked for PT. Telkom since 1991. His first assignment at Telkom was at Information Systems Department. Afterwards, he joined Activity-Based Costing Project and then joined Small and Medium Enterprise Project. Since 2003 Mr. Lukman has joined Internal Auditor Department until now. His experience in ICOFR implementation and assessment was started in 2003. Also, Mr. Lukman is a faculty staff of Informatics Department of Widyatama University atBandung.

He is an engineer in engineering physics of Engineering Physics Department of ITB Bandung, a Master of Information Systems fromClaremont Graduate University,California,USA. He is also a holder of Qualified Internal Auditor certificate from Yayasan Pendidikan Internal Auditor Jakarta. Mr. Lukman has been also a participant of a variety of seminars, job trainings, workshops, etc. in various fields such as computer networking, systems management, computer languages, activity-based costing, activity-based management, balanced scorecard, internal audit workshops, etc.

TEMPAT

Bandung : Hotel Perdana Wisata
Jakarta : Hotel Ibis Tamarin / Arcadia
Yogya : Hotel Abadi
Surabaya : Hotel Satelit
Denpasar : Hotel Harris

TANGGAL

Bandung : 3 & 4 Sept / 1 & 2 Okt / 5 & 6 Nop / 3 & 4 Des 2012
Jakarta : 6 & 7 Sept / 4 &5 Okt / 1 & 2 Nop / 6 & 7 Des 2012
Yogya : 10 & 11 Sept / 8 & 9 Okt / 12 & 13 Nop / 10 & 11 Des 2012
Surabaya : 17 & 18 Sept / 15 & 16 Okt / 19 & 20 Nop / 17 & 18 Des 2012
Denpasar ; 24 & 25 Sep / 22 & 23 Okt / 26 & 27 Nop / 27 & 28 Des 2012

WAKTU

09.00 s.d 16.00

INVESTASI ( Diluar Akomodasi Hotel )

Jakarta / Bandung / Yogya / Surabaya

Rp 2.500.000,- ( Pembayaran sebelum hari H – 14 )
Rp 2.750.000,- ( Pembayaran sebelum hari H – 7 )
Rp 2.950.000,- ( Pembayaran sesuadah hari H – 7 / Full Fare )

Denpasar – Bali

Rp 3.500.000,- ( Pembayaran sebelum hari H – 14 )
Rp 3.750.000,- ( Pembayaran sebelum hari H – 7 )
Rp 3.950.000,- ( Pembayaran sesuadah hari H – 7 / Full Fare )

BONUS

Flash Materi
Konsultasi gratis via Yahoo Messenger selama 1 bulan

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