Corporate Governance Journal
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Boards of directors and their associated committees need to be diligent in meeting their fiduciary responsibilities. A lapse in education, judgment or action can prove disastrous. As the shareholders' eyes and ears on management, the board must provide oversight to help ensure corporate objectives are met. Many governance experts agree that while board members should not be micro-managing their companies, they should ensure sufficient monitoring of management. Candela Solutions understands these dynamics and works with boards and committees to provide a healthy degree of monitoring through special reviews, controls and internal auditing.
Boards need to monitor and review not only their own performance through self-assessment or independent evaluation tools, but also the management team and general operations of the company.
Leveraging COSO's Monitoring Guidance
"Monitoring" is a complex topic that has a lot of different meanings. Candela Solutions' Managing Partner, Ron Kral, served on FEI's Task Force on Monitoring to provide input into the drafting of COSO's Guidance on Monitoring Internal Control Systems published in January, 2009. This Guidance elaborates on the monitoring component of internal control discussed in the 1992 COSO Framework and in the subsequent Internal Control over Financial Reporting - Guidance for Smaller Public Companies published by COSO in 2006. A primary objective of the COSO Monitoring Guidance is to provide practical guidance that illustrates how monitoring can be incorporated into an organization's internal control processes. Common elements of monitoring include supervision, performance evaluation programs, special reviews and internal auditing activities. Oftentimes, a second CPA firm like Candela Solutions, is best positioned to conduct special reviews and sensitive internal auditing activities due to our independence.
Special reviews and projects, especially those under the board of director's direction, can be a valuable tool in monitoring activities towards reaching objectives. The Candela Solutions' team can bring in the tools and independence to provide an unbiased account on a company's control environment.
Once an internal audit need is identified, you may find your team needs additional resources to meet your plan and timeline. Candela Solutions can work with your team to co-source or out-source the function to realize cost efficiencies and tap into specialized expertise.
The Candela Solutions' Compliance practice is fluent in internal auditing and will work with you to fulfill your internal audit needs through:
Boards should invest wisely in their internal audit activities, whether staffed internally, co-sourced or out-sourced. Candela Solutions can assist in all situations by helping to ensure cost-efficient efforts through a top-down, risk based approach.
Candela Solutions LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. NASBA Registry sponsor Id is 112563.