PREVENTIVE INTERNAL CONTROL c. TESTS OF DETAILS OF BALANCES AUDIT PROCEDURES 1. Existing accounts receivable are included in the aged trial balance (com- pleteness). The accounts receivable master file should be reconciled to the control account periodically by an independent person. Foot the aged trial balance and compare the total to the general ledger. Trace a sample of accounts from the master file to the aged trial balance to determine if all are included. 2. Accounts receivable exist
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9001:2008 Internal Auditor Checklist Copyright ©2008 The 9000 Store INTERNAL AUDIT CHECKLIST ISO 9001:2008 4 Quality Management System 4.1 General Requirements Has your organization established a management system (QMS) giving consideration to: a) Identifying the processes needed and the application of the processes throughout the organization: b) Determining the sequence and interaction of the processes? c) Determining the criteria and methods for operation and control of the
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ACCOUNTING AND INTERNAL CONTROL SYSTEM (ISA 400) Definitions Accounting systems Refers to the systems and procedures that management has put in place to ensure that the company maintains proper books of accounts. The auditor should ascertain the client’s system of recording and processing transactions and assess its adequacy as a basis for the preparation of financial statements. An accounting system provides for the orderly assembly of accounting information and appropriate analysis to facilitate
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Importance of Internal Controls Internal controls are designed to protect a local government unit from loss or misuse of its assets. Internal controls also ensure that all transactions are properly authorized and the information contained in financial reports is reliable. This Statement of Position will provide public officials and employees with practical answers to some of the questions most frequently asked about internal controls. What is the purpose of internal controls? Internal controls help
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understatement (i.e. completeness; valuation and allocation) of allowance for doubtful debts (ADD)? Compare ADD as % of Accounts Receivable (AR) with previous year/s, industry average Compare write-off of uncollectible accounts as % of AR (AR) with previous year/s Compare ageing of debtors (30, 60, 90 days overdue, etc.) as % of AR with previous year/s Compare Accounts Receivable turnover days and ratio with previous year/s and industry average 32. What analytical procedures could be useful
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mitigate them by applying internal controls to the AIS. This paper will discuss the risks and internal controls of Kudler’s AIS. The Risks to Kudler’s AIS Risk represents the possibility of a loss or harm to an organization (Raval & Fichadia, 2007, p.29). In developing effective AIS, risks should be analyzed and identified to protect the company’s assets and to promote operational efficiency. Kudler’s AIS uses four systems. They are Accounts Payable (AP), Accounts Receivable (AR), Inventory
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Internal Control Understanding and Documentation Project- EICO Iman H. Al Shawab Table of Contents Part I - Understanding of Entity and Business Environment: 3 Business Overview: 3 Suppliers: 3 Operations: 4 a. Suppliers 4 b. Customers: 5 Part II- Understanding of the Entity’s Internal Control Design and Implementations: 6 Part III: Audit EICO 11 Accepting the Audit and Perform Initial Audit Planning 11 Part I - Understanding of Entity and Business Environment:
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CHAPTER ONE 1. INTRODUCTION 1.1 BACKGROUND TO THE STUDY The advancement of technology and its effects on information systems in organizations have been of major concern to the industrialists, investors and the general public in the recent times. Electronic technology has replaced the traditional methods of keeping records. The financial institutions (including banks) in most part of the world now embrace electronic technology through the use of Electronic Funds Transfer facilities (EFT)
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Case study 2 Situation A: The missing internal controls charctersitics : In evaluating the internal control over cash payments of Yankee Manufacturing, an auditor learns that the purchasing agent is responsible for purchasing diamonds for use in the company’s manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent’s work. 1, Segregation of duties 2, Employees who purchases diamonds should not be allowed to approve invoices
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Version Control and Document History: The IUCN Anti-Fraud Policy Title Version Source language Published in French under the title Published in Spanish under the title Responsible Unit Developed by Subject (Taxonomy) Date approved Approved by Applicable to Purpose IUCN Anti – Fraud Policy 1.0 released February 2008 English Politique de l’UICN de lutte contre la fraude Política para la Prevención de Fraudes de la UICN Office of the Director General IUCN Oversight Unit Fraud, Internal Control, Risk Management
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