Enterprise Risk Management Best Practices: From Assessment to Ongoing Compliance(561 Wiley Corporate F&A)

Table of Contents:
Preface xi Chapter 1: Overview of Enterprise Risk Management 1 ERM Introduction 1 Guidance:  History and Relationship 3 Organization View 5 ERM Today 7 Increased Pressure to Manage Risk 9 Additional evidence 10 Perceived Barriers to Risk Management 11 Building the Business Case for ERM: Value and Benefi ts 11 Keys to Success 13 Summary 15 Notes 16 Chapter 2: Corporate Governance and Roles and Responsibilities 17 Board Behavior 18 Corporate Culture 19 Roles and Responsibilities 20 Summary 23 Chapter 3: ERM Defined 25 Definitions and Concepts 28 Risk Categories 30 Internal Environment 31 Summary 34 note 34 Chapter 4: The ERM Process Step by Step 35 Step 1 Strategy and Objective Definition 36 Step 2 Event Identification 38 Step 3 Risk Assessment 40 Step 4 Risk Response 41 Step 5 Communication 45 Step 6 Monitoring 46 Oversight 47 Summary 47 Notes 48 Chapter 5: COSO Framework and Financial Controls 49 Focus on Financial Controls 49 Control Environment 52 Integrity and Ethical Values 53 Board of Directors 55 Management’s Philosophy and Operating Style 57 Organizational Structure 57 Financial Reporting Competencies 58 Authority and Responsibility 59 Human Resources 60 Summary 61 Notes 62 Appendix 5A: Excerpt from a Code of Ethics Policy 63 Our Guiding Principles and Values 64 Conflicts of Interest 64 Confidential Information; Intellectual Property 65 Appendix 5B: Whistleblower Program 67 Reports Regarding Accounting Matters 67 Investigation of Suspected Violations 68 Discipline for Violations 68 Appendix 5C: Approval Policy and Procedures 69 Policy 69 Purpose 69 Scope 69 Approvals/Documentation 70 Chapter 6: Financial Controls and Risk Assessment 74 Risk Assessment 74 Financial Reporting Objectives 75 Financial Reporting Risks 76 Fraud Risk 77 Entity-Level Controls 83 Example: Risk Assessment and Financial Controls 84 Evaluating Deficiencies 86 Summary 87 Notes 87 Appendix 6A: Entity-Level Control Assessment 88 Control Assessment Overview 88 Control Environment 90 Overall Evaluation of Control Environment 95 Risk Assessment 96 Overall Evaluation of Risk Assessment 98 Control Activities 99 Overall Evaluation of Control Activities 100 Information and Communication 101 Overall Evaluation of Information and Communication 104 Monitoring 105 Overall Evaluation of Monitoring 108 Summary Assessment 109 Overall Assessment of Internal Controls 110 Appendix 6B: Accounts Payable Preliminary Controls Assessment Questionnaire 111 Purchasing Controls Questionnaire 111 Internal Control Assessment 112 Appendix 6C: Fraud Risk Factors: AU Section 316 114 Risk Factors Relating to Misstatements Arising from Fraudulent Financial Reporting 114 Chapter 7: Ongoing Compliance Overview 120 Origin of the Sarbanes-Oxley Act 120 Generating Value from Compliance 121 Moving Beyond Initial Compliance 123 Reevaluating the Compliance Program 125 Summary 131 Chapter 8: Ongoing Compliance Challenges 132 Future State Opportunity: Compliance Optimization 133 Issues to Consider When Optimizing Compliance 136 Ongoing Compliance Plan 138 Role of Internal Audit: Balancing the Compliance and Audit Functions 143 Evolving Role of the Audit Committee 145 Summary 148 Chapter 9: Addressing Compliance and Risk Management Challenges through Automation 149 Software Can Add Value Beyond Compliance 151 Monitoring Software 152 Utilization of Continuous Monitoring: Control Testing and Control Automation 153 Benefits of Continuous Monitoring 154 Continuous Monitoring Tool Considerations 155 Continuous Monitoring Process 155 Risk Management Software 157 Unifying Financial Statements, Close Tasks, and SOX Controls 159 Determining the Right Solution 159 Summary 161 Note 161 Chapter 10: Ongoing Compliance and IFRS 162 International Financial Reporting Standards 162 Communicating the Impact 164 Preparing for IFRS 166 Comprehensive IFRS Transition Approach 167 Key Elements of an Effective IFRS Implementation 170 Summary 172 About the Author 173 Index 175

About the Author :
ANNE M. MARCHETTI has twenty-five years of finance and accounting experience in both private industry and public accounting. She is a Sarbanes-Oxley subject matter expert focused on the design, implementation, analysis, and optimization of internal control systems and corporate governance programs. Ms. Marchetti has worked globally with both public and private entities in most industries as well as organizations of all sizes. She regularly interacts with Big Four, middle market, and local external audit firms as a liaison on behalf of these organizations. She is a member of the AICPA faculty and is the author of Beyond Sarbanes-Oxley Compliance: Effective Enterprise Risk Management and Sarbanes-Oxley Ongoing Compliance Guide, both published by Wiley.