KnowledgeLeader Blog

The Best of KnowledgeLeader: Q2 2017

Posted by Protiviti KnowledgeLeader on Fri, Jul 21, 2017 @ 04:44 PM


In case you missed them, these were the ten most popular tools and publications on KnowledgeLeader last quarter:

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1. Internal Controls Checklist

This checklist sample provides a list of items to consider when assessing internal controls for common business processes.

It focuses on accounts receivable and sales controls, accounts payable controls, accrued liabilities and other expenses controls, cash disbursement controls, cash funds controls, cash receipts controls, general accounting controls, fixed-assets controls, intangibles controls, inventory and cost of sales controls, investments controls, long-term liabilities controls, notes receivable controls, payroll controls, prepaid expenses and deferred charges, and shareholders’ equity controls.

 

 

 

 

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2. Process Classification Scheme (PCS)

The Process Classification Scheme (PCS) is a framework that helps organize information about a company, according to relevant business and/or industry processes, and defines the individual functions of a business that should take place at the strategic, operational and tactical levels. Depicting each function as a defined process or sub-process helps promote a common language and provides a “roadmap” to help identify processes and related risks and potential controls that may be applicable to the organization. Note: The PCS is not an all-inclusive list of existing business processes. Companies should customize the PCS (processes and associated sub-processes) to fit the facts, circumstances and culture of the organization.

 

 

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3. Accounts Payable RCM

 An RCM provides an overview of different control objectives that organizations should take into consideration and the corresponding controls to safeguard the company against risks which may arise if not checked timely. Once customized to an organization, this document can help the user in assessing each control. The control assessment can then also be summarized to develop an action plan.

This document outlines risks and controls common to 5.2.1 Process Accounts Payable in a risk control matrix (RCM) format. 

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4. Internal Audit Risk Assessment Questionnaire

 Internal audit performs this risk assessment to identify and prioritize key risks to best allocate the internal audit resources for the next year. This risk-based approach is focused on surveys/interviews of a cross-section of management personnel to solicit input from the potential customers of an internal audit function. The output from the surveys and interviews can be used to develop an audit plan that creates broad coverage through a blend of internal audits, control self-assessment and targeted external audit coverage.

 

 

 

 

 

 

 

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5. The Updated COSO Internal Control Framework: Frequently Asked Questions

Companies should familiarize themselves with the New Framework, determine their transition plan, and communicate to stakeholders the release of the New Framework and its implications to the organization. In this booklet, we address various questions regarding the New Framework from COSO, including the reasons why it was updated, what has changed, the process for transitioning to its use, and steps companies should take now.

 

 

 

 

 

 

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 6. Enterprise Risk Management Questionnaire

The ultimate goal of enterprise risk management is to evaluate total returns relative to total risks, leading to more informed business decisions. Many ask questions about its value proposition. This questionnaire can be used when analyzing an organization’s enterprise risk management strategy. It focuses on the internal environment, objective setting, risk identification, risk assessment, risk response, control activities, information and communication, role of the board of directors, role of management, common risk failures, and trading activity.

 

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 7. Audit Planning Memo

The purposes of the audit plan are, first, to contribute to the effectiveness of the audit and, second, to contribute to the audit efficiency. This memorandum should be completed and approved as part of the initial audit planning process. In completing this document, there may be occasions when matters already documented in other work papers are relevant. There is no need to re-write such material if a specific reference can be made. 

This memorandum is structured so that planning documentation common to all projects is presented. All items should be read and considered on every project.

 

 

 

 

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 8. Director of the Project Management Office Job Description

 This job description provides the purpose, overall responsibilities, and selection criteria for the position of director of the project management office.

 

 

 

 

 

 

 

 

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9. Procurement Internal Controls Audit Work Program

 This sample audit work program reviews the internal controls in an organization’s procurement process.

Sample questions to consider include: Are purchase orders based on authorized requisitions? Are purchase orders properly coded to identify the cost objective (direct, indirect or inventory)? Are purchase orders serially controlled and accounted for? Is the use of standardized purchase orders required? Are effective numerical document controls or status reports maintained to record the receipt of purchase requisitions? Does the purchasing department maintain specifications for all materials and services used by the contractor? Are requirements combined where appropriate? Are the receiving and inspection functions separate from the purchasing function?

 

 

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 10. Risk Assessment and Internal Audit Plan Audit Report

This sample reports results from an annual risk assessment and proposes an internal audit plan based on the assessment. 

The key themes resulting from the assessment focus on strategic risks, financial risks, operational risks and compliance risks. The strategic risks relate to IT business continuity planning, intellectual property protection, and retention of personnel/process maturity.

 

Topics: KnowledgeLeader tools, KL Top Ten

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