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Popular This Week: Purchase Materials and Supplies RCM and more!

Posted by Protiviti KnowledgeLeader on Tue, Jan 08, 2019 @ 04:31 PM

This week, we are highlighting the Top 5 Pages on KnowledgeLeader from December 31-January 4! Take a look at the "best of the best" of our tools that could help you simplify your audit projects.

"" 1. Purchase Materials and Supplies RCM

This document outlines risks and controls common to the 11.1.3 Purchase Materials and Supplies process in a risk control matrix (RCM) format.






2. Sourcing Root Causes Questionnaire

This questionnaire serves as a starting point for sourcing the root causes of problems, risks and known performance gaps or deficiencies.

When looking at a problem, it is important to distinguish between the primary or root cause and the contributing causes in order to develop the necessary corrective actions to prevent the problem from reoccurring. This type of analysis also establishes the basis of other performance assessment activities. Sample questions include: What performance gap or deficiency has been identified? What was the damage or consequence? Did the process perform the way it was supposed to perform? What are the measurable objectives of the business process?





3. Inventory Policy

This policy outlines guidelines and accounting policies to ensure that inventory is properly controlled and costed, and losses or shortages are prevented. It applies to all inventory items, including raw materials/parts, work in progress, and finished goods and consigned inventory. The procedures focus on inventory valuation, slow moving and excess inventory/reserves, reconciliation of perpetual inventory, physical inventory, consigned inventory, scrap, intercompany transfers, and capitalized cost.

In this sample, inventories are stated at the lower of cost or market. The valuation method for each item of inventory shall remain consistent from one accounting period to the next accounting period.





4. AR and Cash Application Process Flow

This document can be used as a general guide to understand and review the AR and cash application process. Organizations should continuously update and monitor the processes included in this document to ensure that they accurately reflect business operations.





5. Fraud: Internal Audit's Role in Detection and Prevention

The objectives of this guide are to raise awareness about internal audit’s responsibilities related to fraud detection and prevention, to help auditors recognize fraud red flags, and to highlight basic fraud audit techniques. In addition to covering a variety of fraud audit topics, this guide also outlines an anti-fraud program based on the three principal lines of defense, wherein the first line includes a code of conduct and business ethics policies, the second line includes an internal control structure, and the third line includes internal audit activities.

Topics: KnowledgeLeader tools, weekly top 5

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