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Control Matrix

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Template for Control Matrix – add or delete rows as needed

| |Control Goals of the XXX Company XXX process |
| |Control Goals of the operations process |Control goals of the information process |
| |Ensure effectiveness of |Ensure efficient |Ensure security |For the Accounting Record inputs, |For the Accounts |
| |operations by achieving the |employ-ment of |of resources |ensure: |Receivable master data, |
| |following goals: |resources (people,|(source | |ensure: |
|Recommended control plans | |computers) |document) | | |
| | | | | | |
| |A |B | | |IV |IC |IA |UC |UA |
|Present Controls | | | | | | | | | |
|P-1: Hash Total |P-1 | | | | |P-1 |P-1 | | |
|P-2: Cancellation |P-2 |P-2 | | | |P-2 | | | |
|P-3: Bank Reconciliation |P-3 | | |P-3 |P-3 |P-3 |P-3 | | |
|P-4: Providing References |P-4 |P-4 |P-4 | |P-4 |P-4 |P-4 | | |
|P-5: Tickler File(i.e. Aging Report) |P-5 | | | | |P-5 | | | |
|P-6: Zero Balance Check |P-6 |P-6 | | | | |P-6 | | |
|P-7: One for One Checking(Source Document & Journal) |P-7 | | | |P-7 |P-7 |P-7 | | |
|Missing Controls | | | | | | | | | |
|M-1: Agreement of Batch Total(G/L and Sub/L) |M-1 |M-1 |M-1 | | |M-1 |M-1 | | |
|M-2: Key Verification(Two different clerk do the identical |M-2 |M-2 | | |M-2 |M-2 |M-2 | | |
|process) | | | | | | | | | |
|M-3: Back Up Source Document | | | |M-3 | | | | | |
|M-4: Authorization of Document Categorization | | |M-4 | |M-4 | | | | |
|M-5: Document Design |M-5 |M-5 | | |M-5 | |M-5 | | |
| | | | | | | | | | |

Legend

|Effectiveness goals include: |IV = input validity |
|A — minimize errors outstanding time |IC = input completeness |
|B — avoid the occurrence of errors |IA = input accuracy |
| |UC = update completeness |
| |UA = update accuracy |

P-1: Hash Total. • Effectiveness goal A Hash total control can be used for accountant detecting outstanding errors. This will reduce errors’ existing time eventually. • Input completeness and Input accuracy of accounting records Hash total control will help clerk ensure that the input data are accurate and also without missing anything from the source document.

P-2: Cancellation • Effectiveness goal A and B Clerk and accountant use “posted” check mark in the accounting G/L process is a useful tool to minimize the activities such as failure to post the journal into G/L. Also, accountant can use the check mark to accelerate the reconciliation process as well. • Input completeness of accounting records As input data will be checked with “posted” check mark, this will ensure that no journal entries are missed for G/L process.

P-3: Bank Reconciliation • Effectiveness goal A By reconciling the bank statement with accounting records, Errors will be detected and corrected as soon as possible. • security of resources, accounting record input validity, input completeness and input accuracy Comparison of the bank’s statement to journals can detect errors like cash disbursements should have been recorded in the journals which is not (input completeness), disbursements that should not have been made (security of resources, input validity), or were made incorrectly (input accuracy).

P-4: Providing References • Effectiveness goal A, B and Efficient of employment References in the journals and G/L, Sub-ledger are used by accountant to review the transactions and records effectively and also help accountant work efficiently. The less time accountant spends on detecting the errors, the faster accountant corrects the errors. • Input validity, Input completeness and Input accuracy Clerk and accountant use references to ensure that input data is validate, complete and accurate by tracking back the source document to make sure that accounting records are correct.

P-5: Aging report (tickler file) • Effectiveness goal A Aging reports of subsidiary ledger contain detail information of company’s general ledger accounts. These reports are used to check errors of general ledger accounts and as a result, outstanding time of errors will be reduced. • Input completeness Accountants use aging reports to ensure that total balances on the general ledger accounts are correct.

P-6: Zero balance check • Effectiveness goal A and B Accountants detect and avoid mistakes simply by adding up accounts’ balance and employing zero balance check. • Input accuracy If the result of zero balance check is not zero, then there must be some input data is not accurate.

P-7: One for One Checking (Source Document & Journal) • Effectiveness goal A Accountants compare each journal entries to source documents to ensure that there is no error on the journals. • Input validity, Input completeness and Input accuracy Comparing with source documents, Accountants ensure that input data on the journal entries is correct.

M-1: Agreement of Batch Total (G/L and Sub/L) • Effectiveness goal A and B Accountant should have a batch total after finishing the sub-ledger accounts. By doing this, it will make the reconciliation work much easier to detect the untied accounts and correct them. • Input completeness and Input accuracy Batch total will give a clear answer if there is an incompleteness error between G/L and Subsidiary ledger.

M-2: Key Verification (Another clerk check the input data by the first one) • Effectiveness goal A and B If there were two clerks which the second one responsible for verifying the first one’s input data right after the data inputted, there will be fewer errors and mistakes can be found immediately. • Input validity, Input completeness and Input accuracy Two clerks will ensure the validity, completeness and accuracy of input data.

M-3: M-3: Back Up Source Document • Security of resources (source documents) Source documents are very important for to recover from emergency events. So, as an essential control, The Company should back up the source documents in case of disasters like fire, flood and terrorist attacks.

M-4: Authorization of Document Categorization • Efficient employment of resources Source documents released to clerk should be authorized carefully. Non-related documents should not appear on the desk of clerk. This will help reduce redundancy works of clerk and improve company’s efficiency. • Input validity Minimizing the non-related source documents will reduce the possibility of invalid input.

M-5: Document Design (Problem like A/C 1500 & A/C 5100, A/C 5600 & A/C 6500) • Effectiveness goal A and B Clerk keeps making mistakes for posting wrong accounts because of the similarity of accounts like A/C 1500 & A/C 5100, A/C 5600 & A/C 6500, the document should be designed to eliminated the similarity by adding an extra number or rearrange the order of numbers of accounts. The chances that clerk makes mistakes by the similarity of two account numbers should be minimized at that time. • Input validity and Input accuracy Since the journal entries are not going to posted on the wrong account of G/L, input data will be more valid and accurate.

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