...Checklist for Evaluating Internal Controls Checklist for Evaluating Internal Controls Table of Contents Budgets and Planning 1. Segregation of Duties 2. Procedural Controls Cash 1. Segregation of Duties 2. Procedural Controls Revenues and Receivables 1. Segregation of Duties 2. Procedural Controls 3. Billing and Remittance Verification Capital Assets 1. Segregation of Duties 2. Procedural Controls Procurement and Payables 1. Segregation of Duties 2. Procedural Controls Payroll 1. Segregation of Duties 2. Procedural Controls Electronic Data Processing 1. Segregation of Duties 2. Procedural Controls Financial Reporting 1. Segregation of Duties 2. Procedural Controls Checklist for Evaluating Internal Controls Overview Organizations, whether for profit or non-profit, assess the effectiveness of internal controls. The most efficient way to gather information and evidence about the internal controls of an entity is to conduct an interview with the managers using a checklist form of internal control questionnaire (Louwers, 2007). The preparer of the checklist should include questions about each significant assertion in order to obtain evidence about the control environment. Answers to the internal control questionnaire are in the form of yes or no; no usually indicates some weakness or control deficiency. Policies and Procedures A. Segregation of Duties Yes/No Comments 1. Does your organization have an organizational...
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...Checklist for Evaluating Internal Controls Samy Yaacoub ACC/544 Internal Control Systems Prof. Robert J. Cornett March 26, 2012 University of Phoenix Checklist for Evaluating Internal Controls Abstract An auditor uses a checklist as an efficient toll in performing a review to the organization departments’ internal controls. This report provides a suggested comprehensive checklist to evaluate the organization internal control system in the PowerPoint presentation attached. It is also explains how to use this checklist and how the checklist covers and compound the organization internal control system objectives and its five component in the three phases of the internal control. Using the Checklist in Evaluating Organization Internal Controls The checklist works as an efficient tool to evaluate the organization internal control system through reviewing the organization internal control objectives. The checklist questions examine these objectives in details because it asks to response to topics related to authorization and approval, validity, completeness, recording accuracy, safeguarding, and reconciliation. The response to the checklist questions are including alternative answer “yes, no, not sure, and not applicable.” The “no” reply will designate usually a possible weakness, this can compensate by compensating controls within the unit. Apply the checklist to outline/discuss phases of the control evaluation The checklist beads...
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...A Checklist for Evaluating Internal Control ACC/544 January 17, 2011 Professor – Robert Cornett Abstract The Sarbanes-Oxley Act of 2002 requires an audit of management’s assessment of internal controls for publicly traded companies. In addition, the evaluation of a company’s internal control system is to assess control risk to give auditors a basis for planning the audit and to provide information useful to management to meet the company’s control mission. Five basic components of the internal control system and three evaluation phases help auditors to validate the complete internal control system. The data are best quantified with the use of an internal control checklist (Louwers, Ramsey, Sinason, & Strawser, 2007). Internal controls represent safeguards that protect a company’s business operations and financial information. Business owners are typically responsible for developing and implementing internal controls for a company. Owners can use internal or external audits to evaluate the effectiveness of internal controls. This evaluation normally follows a standard process of measuring the company’s business operations and financial information (Vitez, 2009). Interview Management Management interviews allow auditors to understand the mindset of business owners and other managers in the company. Interview questions include why the owner created certain internal controls, what the controls are for, do managers understand the purpose of the...
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...Checklist for Evaluating Internal Controls Control Environment Department: Preparer: Date: Please Enter Date here Yes No NS N/A | Checklist Questions | | 1. Are the company shareholder's approved of the project? | | 2. Is the company management approved of the project? | | 3. Has the employee's involved been fully informed of the project? | | 4. Does the project follow or improve the company's mission? | | 5. Does the project have a mission? | | 6. Has accounting reviewed the project? | | 7. Has accounting provided a report on the costs of the project? | | 8. Is the company ready to introduce the project? | | 9. Are the management and employees ready to work on the project till complete? | | 10. Does the project interfere with any Human Resource policies or procedures? | | 11. Are the employee's working on the project knowledgeable about the skills needed? | | 12. Has the Project Manager been chosen? | | 13. Can an internal audit be done on the project later? | | 14. Are all the three phases being followed? | NS = Not Sure N/A = Not Applicable Risk Assessment Department: Preparer: Date: Please Enter Date...
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...Checklist for Evaluating Internal Controls Darius Perrin ACC/544 Checklist for Evaluating Internal Controls According to Investopedia (2013), internal controls are methods implemented by a company to ensure the organization is meeting their profitability targets efficiently while also keeping the integrity of the company. The following discussion will outline the three phases of the control evaluation which is understanding the documenting the internal control, assessing the control risks, and performing tests of the controls and reassessing control risks. Phase 1: Understand and Document Internal Control Phase 1 allows the auditors to work efficiently by getting a basic understanding of the organizations internal control. There are five components to internal control: control environment, risk assessment, control activities, monitoring, and information and communications. The following checklist will allow the audit team to gather evidence and focus their efforts in reviewing what aspect is at more risk and requires more review (Louwers, 2007). Yes/No Comments Control Environment Evaluation 1. Is there a written code of conduct displayed for employees to view? Yes 2. Are all employees aware for their goals as an individual? Yes 3. Is there a written document describing each employee’s job description? Yes 4. Would you consider your financial reporting attitude to be conservative? Yes 5. Are actions taken when an employee is found acting...
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...Checklist for Evaluating Internal Controls Internal Controls can be easily evaluated by making use of a comprehensive questionnaire containing all pertinent components of the internal control system in place within the company or business unit. The idea of the internal control questionnaires is to provide auditors with wealthy information in regards to the controls in place and possible risky areas. “Internal control questionnaires are designed to help the audit team obtain evidence about the control environment and about the accounting and control procedures that are considered good error-checking routines. Answers to the questions, however, should not be taken as final and definitive evidence about how well control actually functions. Evidence obtained through the interview-questionnaire process is hearsay evidence because its source is the supervisor, not the person who actually performs the control work. This person could give answers that reflect what he or she believes the system should be rather than what it really is. The person can be unaware of informal ways in which duties have been changed or can be innocently ignorant of the system details. Nevertheless, interviews and questionnaires are useful when a manager tells of a weak feature. An admission of weak control is fairly convincing” (Lowers, et. Al 2007). On Appendix A of this paper, an example of an Internal Control Questionnaire is provided. It is general by nature, but it can be easily customized to any company/industry...
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...Checklist for Evaluating Internal Controls Internal control evaluation checklists are meant to help a company assess the structure within the organization. An effective internal control guarantees the integrity of financial reporting. There are five components of an internal control system, which include: control environment, risk assessment, control activities, information and communication, and monitoring. Not only are there five components, but there are three phases, understanding, assessment, and testing. This checklist helps to assure that control objectives are achieved with cost-benefit consideration. Auditors will need to consider the five components within the three phases of the internal control evaluation. Below is a sample checklist for the internal control of a company: Client Name ____________________________________________________________ _____________ Prepared by ____________________________________________________________ _____________ Date Prepared ____________________________________________________________ ___________ Internal Control Checklist Phase I Understanding Internal Controls Control Environment: 1. Do employees clearly understand the mission of the organization? 2. Do employees understand their objectives? 3. Do employees clearly understand what they are accountable for? 4. Are the principles of integrity and ethical values shared and practiced by all? 5. Is a current organizational chart maintained and followed...
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...How to assess the validity of online information Executive summary Starting with an answer on question “Why to evaluate?” this document explains techniques and methods of evaluation of online information through two similar approaches. It does not compare and it does not suggest better way of evaluation either. However, it raises the importance of evaluation but it is up to the reader himself/herself what will do with information covered here. Introduction The World Wide Web provides information from all around the world. There is extremely wide variety of material, different in its reliability, accuracy and value. No one has to approve the content before publishing like in more traditional form (books or magazines) and everyone can publish. Internet by its nature was designed to provide unrestricted information. There are no rules or standards as far as quality of information which writer can put on the internet are concerned. This information can be found in a large variety of kinds and was created for different purposes. Each of these different kinds and purposes has various levels of quality, credibility and reliability. Purpose of this report is to discuss how to assess validity of online information and most appropriate methods of evaluation. Discussion 1. Why to evaluate online information The nature of the web itself and the fact that anyone can publish or even change content of some...
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...Executive summary Starting with an answer on question “Why to evaluate?” this document explains techniques and methods of evaluation of online information through two similar approaches. It does not compare and it does not suggest better way of evaluation either. However, it raises the importance of evaluation but it is up to the reader himself/herself what will do with information covered here. Introduction The World Wide Web provides information from all around the world. There is extremely wide variety of material, different in its reliability, accuracy and value. No one has to approve the content before publishing like in more traditional form (books or magazines) and everyone can publish. Internet by its nature was designed to provide unrestricted information. There are no rules or standards as far as quality of information which writer can put on the internet are concerned. This information can be found in a large variety of kinds and was created for different purposes. Each of these different kinds and purposes has various levels of quality, credibility and reliability. Purpose of this report is to discuss how to assess validity of online information and most appropriate methods of evaluation. Discussion 1. Why to evaluate online information The nature of the web itself and the fact that anyone can publish or even change content of some websites means that excellent resources reside along...
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...Checklist for Evaluating Internal Controls There are five components to internal controls. A comprehensive checklist should adequately define these components and ensure that each component has been adequately met. According to Louwers, Ramsay, Sinason, and Strawser (2007) the five components to internal controls include: 1. Control environment – Involves the tone of the organization and includes “the integrity, ethical values, and competence of the company's people” (Louwers, Ramsay, Sinason, & Strawser, 2007). 2. Risk assessment – Involves a thorough assessment which “identify(s) risks, estimate their significance and likelihood, and consider how to manage the risks” (Louwers, Ramsay, Sinason, & Strawser, 2007). 3. Control activities – Involve specific actions which help ensure that management’s objectives and expectations are carried out. 4. Monitoring – Ongoing evaluation of internal controls performed on a timely basis. 5. Information and Communication – Relates to the efficiency and reliability of information and communication refers to how the information is presented to communicated to users. |Defining the Control Environment |Yes/No | |Is there a clear method of assigning authority and responsibility? | | |Is there a clear transparency within the audit trail? ...
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...Internal Control Evaluation An auditor uses a checklist template when conducting an audit of internal control. The auditor will assess the financial condition and internal procedures. Internal control process must comply with industry standards and regulatory requirements. Corporations must prepare responses to auditors and should have an internal control system in place. “Five components of internal control are considered to be criteria for evaluating a company’s financial reporting controls and the bases for auditor’s assessment of control risk as it relates to financial statements” (T. Louwers, R Ramsay, D Sinanson, J. Strawser, 2007 p. 163) The internal control evaluation has three phases in which an auditor uses to form assess the corporation and form an opinion. Phase 1 Understand and Document the Client’s Internal Control The primary objective of Phase 1 is to become familiar with the work and control environment. The auditor must learn the control environment by setting up interviews with staff. Auditor should ask specific questions about the flow of transactions in the accounting system. The corporation should provide the auditor with the design of the control procedures. To examine the control environment and complete an evaluation, the auditor will contact the Human Resource Department for a copy of the code of employee conduct and performance methods. The organizational chart will help the auditor identify management team and area of responsibility. To measure...
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...Comprehensive Checklist for Evaluating Internal Controls ACC/544: Internal Control Systems Comprehensive Checklist for Evaluating Internal Controls As defined by the COSO framework, there are five elements that are used to explain an internal control system applied in an organization. These elements include: 1. Control Environment – The control environment is the foundation for the other four components of internal control. It outlines discipline and structure for the internal control method and consists of philosophy, ethical values, operating style, risk appetite, functioning of the board, and organizational structure (Louwers, Ramsay, Sinason, & Strawser, 2007). 2. Risk Assessment - This component evaluates the way in which an organization decides to handle the number of always-evolving external and internal risks. 3. Control Activities - This component seeks to ensure that the directives of management are carried out. These are computerized and manual and serve the purpose of preventing, detecting, and correcting errors (Louwers, Ramsay, Sinason, & Strawser, 2007). 4. Information and Communication – The information and communication component provide managers with the critical information necessary for achieving objectives. This component seeks to provide information that is timely, reliable, and relevant. 5. Monitoring – Assessing the quality of the established controls is essential to motivate continuous progress of the internal control method. ...
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...A Scientific Approach for Total Quality Ricardo Colon PJM – 440 Total Quality Management Colorado State University – Global Campus Dr. Victoria Figiel August 24th, 2015 A Scientific Approach for Total Quality This paper discusses the scientific approach to decision making and problem solving concerning total quality. When combined with total quality tools, the scientific approach can empower employees to commit to a continuous quality improvement culture. I will explain how this effect occurs. Also, a detailed synopsis of my experience related to how quality tools can increase project management success will be provided. Two ways of making decisions stem from examining the results and evaluating the processes applied to the decision making method, (Goetsch, & Davis, 2013). Leaders need objective information to ensure their decisions are based on factual data, (Goetsch, & Davis, 2013). The scientific method applied to total quality provides empirical, factual evidence to support decisions and solving problems, (Goetsch, & Davis, 2013). Meaning, the scientific method can provide decision makers with valuable information to achieve customer satisfaction based on factual information. Customers seek specific metric based results from products and services. Thus, total quality leaders can use the scientific method to collect and analyze data to define customer satisfaction, and make decisions to achieve said parameters. With a large...
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...Project Audit Checklist Project Name: ______________________________________________Audit Date(s): _____________________________ Project Manager: ______________________________ Project Auditor: __________________________________________ Project ManagementKnowledge Areas | Successes | Shortcomings | Comments and Recommendations | | | | | 1. Project Integration Management | | | | 2. Project Scope Management | | | | 3. Project Time Management | | | | 4. Project Cost Management | | | | 5. Project Quality Management | | | | 6. Project Human Resource Management | | | | 7. Project Communications Management | | | | 8. Project Risk Management | | | | 9. Project Procurement Management | | | | 10. Other Matters | | | | PROJECT MANAGEMENT KNOWLEDGE AREAS Knowledge areas provide for a comprehensive checklist. PROJECT INTEGRATION MANAGEMENT A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated. It consists of: * Project plan development—integrating and coordinating all project plans to create a consistent, coherent document. * Project plan execution—carrying out the project plan by performing the activities included therein. * Integrated change control—coordinating changes across the entire project. PROJECT SCOPE MANAGEMENT A subset of project management...
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...quality in early education are, 1. Child protection 2. Health and safety 3. Administration of medication. 4. Risk assessment 5. Staff recruitment and Selection 6. Open door 7. Complaints 8. Whistle blowing 9. Food hygiene 10. Infection control Clearly written, sourced and current policies have an extremely important purpose because they shape and promote good quality practice. They support child care professionals to make informed decisions about their daily practices and act as a point of reference. Policies need to be developed with the views of all stakeholders to help everyone to understand why a practice is necessary, who is accountable for it, when and where the practice should occur and how it happens. Policies also need to be made available to everyone and updated regularly. Policies are there to guide activities within settings and meet legal local and national requirements. Our aims state that we should provide the best environment in which children feel safe and happy and parents are able to place their children in a safe and healthy environment this is achievable by following our health and safety policy along with infectious control to protect children/staff/parents/carers and other stake holders. Our aims...
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