KnowledgeLeader Blog

Popular This Week: Manage Inventories RCM and more!

Posted by Protiviti KnowledgeLeader on Tue, Apr 02, 2019 @ 09:28 AM

This week, we are highlighting the Top 5 Pages on KnowledgeLeader from March 25-29! Take a look at the "best of the best" of our tools that could help you simplify your audit projects.


1. Manage Inventories 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 the 11.4.2 Manage Inventories process in a risk control matrix (RCM) format.


2. Internal Audit Performance Measures Key Performance Indicators (KPIs)

An effective business process is built on a set of well-defined and clearly stated business objectives. To build and continually improve an effective business process, a company establishes: key objectives to articulate the performance results the company expects from the business process, outcome measures to determine whether the company has reached the key objectives, and activity measures to monitor the performance of instrumental activities.

This tool outlines key objectives for conducting internal audits, the outcome measures associated with each objective, and the activity measures that drive each outcome measure. A link connects each outcome measure with its corresponding formula and analysis.




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. Employee Benefits Audit Work Program

This audit program can be used by an organization to review its benefits program eligibility and administration and its benefit disbursement authorization. Audit objectives include: inventory HR-administered employee benefit plans/programs; review compliance with policies and procedures for employee benefits (commitments, disbursements, authorizations, payments and provider agreements); review the benefit disbursements process to understand payments to employees, providers and others; and review the benefit accrual, reporting and authorization processes.

This document can be used as a general guide to understand and review these processes.





5. Facilities Management Audit Work Program

The purpose of this audit work program is to provide the general steps used to perform a facilities management audit. This document provides guidance on reviewing facilities management best practices, understanding essential processes, and obtaining information regarding the cost of facilities maintenance.

Audit steps include: review known best practices and the internet, develop a project plan and determine the scope, set a budget, plan a coordination meeting with the key process owner, obtain a copy of applicable policies and procedures, review the procedures prior to beginning fieldwork, and draft any questions that may be asked during interviews and process mapping.




Topics: KnowledgeLeader tools, weekly top 5

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