Design lease accounting controls that address completeness, accuracy, review, and change monitoring.
The move: match the control to the risk. Lease accounting controls fail when they only check the numbers already inside the lease system. COSO control activities should respond to specific risks: missing leases, wrong measurement, unsupported judgments, and unmonitored changes. Completeness needs upstream evidence. Procurement requests, legal contract repositories, recurring AP vendors, facilities trackers, and asset listings should feed the lease review process. Accuracy needs recalculation and data checks: payment schedules, rates, dates, incentives, and component allocation. Judgment review needs a real approval trail for lease term, embedded lease conclusions, discount rates, and materiality decisions. Monitoring needs triggers after commencement:…
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