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KnowledgeLeader's Top 10 Audit Tools: Q2 2018

Posted by Protiviti KnowledgeLeader on Thu, Jul 19, 2018 @ 12:17 PM

In our last blog post, we took a look at the most popular publications from Q2 2018. This week, we take a look at our most popular AUDIT TOOLS. This quarter's Top 10 list has variety--we see some classics, some surprises, and a lot of content that should be useful for completing your audit projects throughout 2018 and beyond. Check out the full list and enjoy!

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1. Internal Audit Risk Assessment Questionnaire

Internal audit performs a risk assessment to identify and prioritize key risks to best allocate the internal audit resources for the next year. This risk-based approach is focused on surveys/interviews of a cross-section of management personnel to solicit input from the potential customers of an internal audit function. 

The output from the surveys and interviews can be used to develop an audit plan that creates broad coverage through a blend of internal audits, control self-assessment and targeted external audit coverage.

 

 

 

 

 

"" 2. AR and Cash Application Process Flow

Cash application is a process relating to accounts receivable (AR), where incoming payments are applied to the corresponding customer invoice. Whether it is a cash or wire (EFT) payment, a monthly bank reconciliation is performed by the accounts payable (AP) assistant and the AR assistant within two days of month-end. It is then reviewed, signed off and filed by the financial controller. This process flow focuses on the AR and cash application process. 

 

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3. 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. 

 

 

 

 

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4. Accounts Payable RCM

This document outlines risks and controls common to the “process accounts payable” process in a risk control matrix (RCM) format. 

Sample risks include: duplicate invoices are received and processed, leading to duplicate payment; goods are received for unauthorized or invalid purchase orders and are not appropriately recorded in the system; and misappropriations or fraudulent payments may be made.

 

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5. Control Self-Assessment Questionnaire: COSO

Self-assessment is a recognized best practice that has been applied to risks and controls for many years. Systematically applied across the organization at the entity and process levels, self-assessment is a pre-determined approach whereby individuals self-review or self-audit controls and communicate the results to appropriate management.

This questionnaire can be used to assess an organization's use of the COSO framework.

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6. Procurement Internal Controls Audit Work Program

This sample audit work program reviews the internal controls in an organization’s procurement process.

Sample questions to consider include: Are purchase orders based on authorized requisitions? Are purchase orders properly coded to identify the cost objective (direct, indirect or inventory)? Are purchase orders serially controlled and accounted for? Is the use of standardized purchase orders required? Are effective numerical document controls or status reports maintained to record the receipt of purchase requisitions? Does the purchasing department maintain specifications for all materials and services used by the contractor? Are requirements combined where appropriate? 

 

 

 

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7. Internal Audit Planning Memorandum

This memo captures all details for planning an internal audit, such as the internal audit team members’ names and roles, duration of the internal audit, location of the internal audit, company business hours, key contacts, internal audit scope and approach, deliverables, high-level work program, and high-level work schedule.

This memorandum should be completed as part of the initial audit planning process and is meant to enhance audit efficiency.

 

 

 

 

 

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8. Internal Audit Risk Assessment Report

This sample reports results from an annual risk assessment and proposes an internal audit plan based on the assessment.

In this sample, risk assessment was conducted with the assistance of company management to identify perceived areas of risk and potential internal audit projects. The following procedures were performed: conducted interviews with members of company management to identify and gain an understanding of areas of perceived risk; etc.

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9. Strategic Internal Audit Plan

This sample outlines the approach employed by internal audit to develop the audit plan and indicative projects for the year.

The plan is based on the previous strategic internal audit plan and has been updated to reflect changes within the organization. The approach to develop the revised plan includes three steps: develop internal audit plan; confirm internal audit focus area; and executive and audit committee endorsement. 

 

 

 

 

 

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10. Enterprise Risk Management Questionnaire

The ultimate goal of enterprise risk management is to evaluate total returns relative to total risks, leading to more informed business decisions. Many ask questions about its value proposition. This questionnaire can be used when analyzing an organization’s enterprise risk management strategy. It focuses on the internal environment, objective setting, risk identification, risk assessment, risk response, control activities, information and communication, role of the board of directors, role of management, common risk failures, and trading activity.

Topics: KL Top Ten, KnowledgeLeader tools

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