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Popular the Week of August 12: FASB Proposes Delays to Effective Dates for Four Major Accounting Standards and more!

Posted by Protiviti KnowledgeLeader on Tue, Aug 20, 2019 @ 02:52 PM

This week, we are highlighting the Top 5 Pages on KnowledgeLeader from August 12-16! Take a look at the "best of the best" of our tools that could help you simplify your audit projects.


1. FASB Proposes Delays to Effective Dates for Four Major Accounting Standards

On July 17, the Financial Accounting Standards Board (FASB) voted to delay, for certain entities, the effective dates for four major accounting standards. The board’s decision will be reflected in two upcoming drafts outlining the proposals to set the new effective dates, which will be based on certain company criteria ranging from classification by the U.S. Securities and Exchange Commission (SEC) to non-profit status.

This Flash Report outlines what organizations can expect in the FASB’s proposal drafts and explains the actions that should be taken immediately.







2. IT General Controls Questionnaire

IT general controls are critical and central to business processes. They typically impact multiple applications in the technology environment and prevent certain events from impacting the integrity of processing data. 

The objective of these controls is to mitigate risks associated with their pervasive effect on the reliability, integrity and availability of processing relevant data. In this questionnaire, you can determine whether the control exists, whether it was designed properly, related test procedures, and management's action plan for deficiencies.


3. Manual Journal Entry Review Policy

Errors in processing manually entered journal entries (hand keyed or uploaded) into the general ledger system could lead to an error in the financial statements if they are not detected and corrected in time. To mitigate this risk, certain types of manually entered journal entries should be reviewed by someone independent of the preparer/approver of the journal.

This sample policy outlines a review of manual journal entries within an organization to mitigate these potential risks.








4. 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.




5. Audit Rating Guide

This guide can be used for auditing remote access activities and assists in identifying opportunities to further enhance and improve areas such as internal controls, operations and accounting. 

In this sample, audit rating standards include good, satisfactory, requires improvement, unsatisfactory, concurrence/nonconcurrence and not rated. All of management’s controls were sufficiently designed to mitigate risks and achieve control objectives related to remote access. Additionally, all of management’s controls were tested to be operating effectively to mitigate the intended risks and achieve the intended control objectives.




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