KnowledgeLeader Blog

The Best of KnowledgeLeader: April Edition 2017

Posted by Sharise Cruz on Fri, Mar 31, 2017 @ 10:23 AM

In case you missed them, these were the five most popular tools and publications on KnowledgeLeader last month:


1. Internal Controls Checklist

This checklist sample provides a list of items to consider when assessing internal controls for common business processes.

It focuses on accounts receivable and sales controls, accounts payable controls, accrued liabilities and other expenses controls, cash disbursement controls, cash funds controls, cash receipts controls, general accounting controls, fixed-assets controls, intangibles controls, inventory and cost of sales controls, investments controls, long-term liabilities controls, notes receivable controls, payroll controls, prepaid expenses and deferred charges, and shareholders’ equity controls.






 2. Risk Assessment Audit Work Program

The purpose of this audit work program is to assess and validate key controls in place for the risk assessment component of the COSO framework. Inadequate or ineffective controls in this area may give rise to financial and operational risks.

Risks addressed include: management does not have a business planning process in place, which examines existing objectives and establishes new objectives when necessary; management has not established business plans and budgets with realistic goals, and incentives for the achievement of plans are not balanced; objectives are not communicated at the appropriate levels, and are not understood and adopted by the responsible parties; and management has not established a process to periodically review and update entity-wide strategic plans and objectives.




3. Audit Planning and Scoping Checklist

This checklist helps plan the nature, timing and extent of work on an individual audit assignment where the design effectiveness and/or operational effectiveness of any business process are to be examined.

It can be used in connection with the planning and scoping memorandum template to prepare detailed instructions for the work. The project manager can leverage this checklist to assign responsibility for certain steps to the person who will be in charge of the field work. It also calls for an attestation by a director that he or she has been involved in planning to the extent needed and has approved the resulting planning and scoping memorandum.






4. Process Classification Scheme (PCS)

The Process Classification Scheme (PCS) is a framework that helps organize information about a company, according to relevant business and/or industry processes, and defines the individual functions of a business that should take place at the strategic, operational and tactical levels. Depicting each function as a defined process or sub-process helps promote a common language and provides a “roadmap” to help identify processes and related risks and potential controls that may be applicable to the organization. Note: The PCS is not an all-inclusive list of existing business processes. Companies should customize the PCS (processes and associated sub-processes) to fit the facts, circumstances and culture of the organization.



5. Internal Controls Questionnaire: General Control Structure

This questionnaire is designed to help in the assessment of a company’s general controls and internal controls by business process. Each question addresses global internal controls at a high level whereas specific internal control detail can be reviewed during site visits.

After completing this questionnaire, internal audit can use the information provided in validation of the internal control environment and development of control areas. Each response should be validated, therefore respondents should be requested to provide the most accurate information possible that truly reflects current business processes and controls.





Topics: KnowledgeLeader articles, KnowledgeLeader tools, KL top five

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