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Popular This Week: Manual Journal Entries RCM and more!

Posted by Protiviti KnowledgeLeader on Tue, Apr 09, 2019 @ 05:33 PM

This week, we are highlighting the Top 5 Pages on KnowledgeLeader from April 1-5! Take a look at the "best of the best" of our tools that could help you simplify your audit projects.


1. Manual Journal Entries 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 manual journal entries aspect of the Journal Entries 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. PCAOB Issues Outlook to Audit Committees for 2019 Staff Inspections

On March 14, the PCAOB released a staff inspection brief highlighting its strategic focus on enhanced engagement with key external stakeholders, including audit committees. The brief is intended to help audit committees and registered public accounting firms understand and comply with PCAOB auditing standards and is useful for preparers and issuers to understand issues that impact their auditors and regulators.

In this Flash Report, we highlight some of the most notable areas the PCAOB underscored in its recent brief.






4. Account Reconciliation Questionnaire

This sample questionnaire can be used to analyze the effectiveness of an organization's account reconciliation process. In general, an account is considered reconciled if it is documented that the account balance accurately reflects the underlying asset, liability or equity position of the company as of the reconciliation date. Specifically, an account reconciliation compares a general ledger account balance with the detail-level subledger.

In this sample, the questions regarding control effectiveness test whether the reconciliation adequately explains and substantiates the entire account balance, justifies the continued existence of all items in the account, and is prepared and reviewed timely.





5. 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.




Topics: KnowledgeLeader tools, weekly top 5

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