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Popular the Week of August 19: Cash Flow Management Leading Practices and more!

Posted by Protiviti KnowledgeLeader on Tue, Aug 27, 2019 @ 03:46 PM

This week, we are highlighting the Top 5 Pages on KnowledgeLeader from August 19-23! Take a look at the "best of the best" of our tools that could help you simplify your audit projects.


1. Cash Flow Management Leading Practices

An effective cash flow process is built on a set of well-defined and clearly stated business objectives. Key objectives articulate the ideal performance results that the company expects from that process. When determining what process improvements are needed to reach the next level of maturity, evaluators should consider the importance of the process being addressed. As the importance of a process increases, its desired capability increases.



2. 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.




3. Inventory Management Training Guide

This guide focuses on the inventory management process. It includes quick facts on inventory; policies and procedures for inventory valuation and cycle count; performance measures; a sample inventory work program; and sample process interview questions.

Inventory quick facts include details on the meaning and benefits of perpetual inventory, accounting for perpetual inventories, items included in inventory, and costs to include in inventory valuation. Performance measures for cycle time, inventory turns per year, percentage of defective products, unit cost (process costing method), and percentage of on-time deliveries (both inbound and outbound) are also outlined in this document.







4. IT Application Security Questionnaire

This sample questionnaire is designed to monitor and enhance an organization's IT application security process.

Sample questions include: Do security controls exist within the application? Does the application administrator require privileged access to the platform it resides on? Does the application automatically deactivate the session after a period of inactivity? Are users restricted from logging on to the application more than once at a given time? Can the system provide edit capabilities to certain users and read capabilities to other users based on their needs?





5. 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.





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