Internal Control Issues in Derivatives Usage: An Information Tool

Internal Control — Integrated Framework, having provided useful guidance for assessing control systems and for determining how to improve them since it was issued in 1992, is an excellent frame of reference. The Committee on Sponsoring Organizations of the Treadway Commission (COSO) requested Deloitte & Touche LLP to help develop an information tool to apply the landmark Framework to derivative usage. Wrapping up this important study are two appendices. One details the technical aspects of derivatives and the other offers a handy glossary of important terminology.

The result is an invaluable tool that includes:

• An Executive Summary
• Formulating Policies Governing Derivatives Used for Risk Management
• An Illustrative Control Procedures Reference Tool