Internal Controls: CMA Exam Part 1 - Section E

Author: Tom Coghlan

Includes the following topics: Governance, risk, and compliance; Internal control provisions of the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act; role of internal auditing in internal controls; systems controls and security measures.

Using CPE credits to prepare for the Certified Management Accountant (CMA) exam is a pathway to a more successful business career: one that opens doors, builds confidence, closes skills gaps, and lets you tap into a network of 85,000 professionals around the globe.

The CMA certification complements other credentials or degrees and tests for analytical and critical-thinking skills not covered in other exams. About one in three active CMAs in the U.S. are also CPAs.

The Certified Managerial Accountant (CMA) designation delivers:
1) The ability to see the big picture, both operational and financial.
2) The know-how to leverage technology, especially as it relates to gathering and analyzing data.
3) Insight into financial implications of business decisions and the ability to communicate them in way that is clear and jargon-free.

Publication Date: April 2017

Designed For
Financial officers and controllers, Financial accountants, managerial and cost accountants, Financial and business analysts, Budget managers and analysts, Risk managers, CIO's and information technology professionals.

Topics Covered

• Risk and Internal Controls
• Governance and Compliance
• Internal Auditing
• Systems Controls
• Security Measures

Learning Objectives

• Define risk and how internal controls can mitigate risk. Define inherent risk, control risk and detection risk.
• Describe the five components of the Committee of Sponsoring Organization's (COSO) internal control model.
• Identify the Board of Directors role related to company operations and the shareholders.
• Describe the internal control portions of the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act.
• Describe the role of the Public Company Accounting Oversight Board (PCAOB) in providing guidance in auditing internal controls.
• Define the internal audit function and identify its scope.
• Identify and describe the internal control breakdowns and related risks that the internal audit function should report to management and the Board of Directors.
• Define, identify and describe the use of physical controls, logical controls, transaction controls, storage controls, and systems development controls.
• Describe threats to information systems and ways to mitigate information security threats.
• Define the objective of a disaster recovery plan.
• Define business continuity planning.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Finance (3 hours)

Program Prerequisites
None

Advance Preparation
None