...controls that are executed by an independent, supervisory-level employee who does not have custody, record-keeping, authorization or reconciliation responsibilities for the process. In the checklist below, we have provided examples of several such compensating controls. Ideally, no individual employee should handle more than one of the above-noted functions in a process. When an organization separates these functions among its employees, it has implemented a strong internal control, which may deter and prevent employee fraud. Segregation of duties is one of the key concepts of internal controls. It is also one of the most effective internal controls in combating employee fraud. Segregation of duties contributes to an organization’s system of checks and balances. The concept of segregation of duties is to separate the following responsibilities in each business process: • Custody of assets • Record keeping • Authorization • Reconciliation Glenn Pomerantz Partner BDO Consulting gpomerantz@bdo.com 212-885-8379 Nidhi Rao Director BDO Consulting nrao@bdo.com 212-885-8008 The checklist is intended solely for illustrative purposes and is not intended to constitute professional advice for any particular...
Words: 9928 - Pages: 40
...flow of goods (large components). b) Administrative and organisational conditions Computer security The operations of the OFS is relevant for the completeness of revenues as the hours and costs(to be charged on to TFD) are recorded via this system. The ERP system is the core system for financial recording and data processing so regular measures have to be in place to ensure effective and efficient operations. TFD’s central IT department will gave issued procedures for this (including test, audits, authorisation matrix, maintenance procedures etc). Specials attention to safety and reliability issues of cloud application for renovation management (yearly evaluation and recommendations by IT-specialist) Segregations of duties The regular SoD have to be in place. The ERP system will enforce seperisation of authorisation, recording, checking functions (e.g. authorisation by management of contracts for renovation maintenance by management; recording of hours by mechanics, recording of repairs executed by mechanics, (sample) checking of repairs by call center employee; recording of purchases and items in stock by warehouse department; checking by administration) With regard to the completeness of revenues the segregation between recording man hours by the mechanics and checking (and final authorisation) of these hours by the region managers is imporrtant Budget and budgeting procedures The budget is based on number of repair jobs; number of expecvted turnover amintenance jobs...
Words: 1432 - Pages: 6
...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 the preparation of financial statements. The management of an organisation requires complete and accurate accounting and other records to assist in: a) Controlling the business b) Safeguarding the assets c) Preparation of the financial statements d) Complying with legislation Internal controls If the auditor wishes to place reliance on any internal controls he should ascertain and evaluate those controls and perform compliance tests on their operation. If the clients system is evaluating as being effective, the auditor can rely on these controls and reduce the level of detailed substantive work. Definition An internal control systems consists of all the policies and procedures (internal controls) adopted by management of an entity to assist in achieving management’s objective of ensuring, as far as practicable the orderly and efficient conduct of its business, including adherence to management policies, safeguarding of assets, the prevention and detection of fraud and...
Words: 3769 - Pages: 16
...1. In the vocal track of your multi-track recording, all the “P” syllables are very loud and sort of ‘explosive’. What causes this and how can it be eliminated? (2 marks) When pronouncing certain syllables, specifically “P” and “B”, a strong blast of air travelling downward and forward from the mouth creates a massive pressure change, which takes a while to subside. If this were to hit a microphone set to a cardioid or hypercardioid polar pattern in which the diaphragm is inherently relatively slack, the diaphragm can ‘bottom out’ and hit the backplate insulator. Once this mechanical clipping has taken place, it can take the diaphragm a surprisingly long time to recover properly. Some amplitude modulation may also occur where the wanted higher...
Words: 1950 - Pages: 8
...article demonstrates in a step-by-step process to write Backup Domain Controller (BDC) reports to do data transfer from legacy system, which is important work during SAP implementation projects. Author(s): Renjith Kumar. P Company: PRICOL Technologies Created on: 21 January 2007 Author Bio P. Renjith Kumar is SAP BI Consultant with PRICOL Technologies. He has extensive cross-functional experience and has been with end-to-end SAP implementations as ABAP Consultant. SAP DEVELOPER NETWORK | sdn.sap.com © 2007 SAP AG BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 1 BDC Step-by-Step Table of Contents Overview: How It Works .................................................................................................................. 2 Steps in data transfer....................................................................................................................... 2 Data Transfer Methods .................................................................................................................... 3 Step-by-Step Process...................................................................................................................... 3 Task 1: Recording............................................................................................................................ 3 Task 2: Creating ABAP Report based on recording done............................................................... 6 Task 3: Writing ABAP report to do data transfer ........
Words: 1329 - Pages: 6
...satisfactory, with two areas identified as needed improvement: a. The Hospital maintains an active Patient Care Policy for use of prohibited abbreviations, with a separate Addendum listing unacceptable abbreviations, their intended meaning, as well as recommended best practices. Although the list contains the majority of prohibited abbreviations, the following abbreviations listed in IM.02.02.01. were not included: QD, q.d., qd, Q.O.D., QOD, q.o.d, qod. b. The instances of unacceptable abbreviations were reduced to 0.4% by the end of last calendar year, showing substantial decrease in use of most unacceptable abbreviations, with the exception of recording of abbreviation “u” in place of a word “unit”. The instances of using this particular abbreviation have increased from 17% to 63% in the course of a calendar year. 2. The “Admission Orders” form is adequate and fulfills the purpose...
Words: 944 - Pages: 4
...Case 1: Encosta Memories 1) a) No, it is not correct. b) The statement is not correct because once a system is acquired. Whether it is internally designed or externally purchased. It still requires regular IT maintenance. Some Examples are IT security, protection from hackers or problems, IT technical support. IT performance includes the ability to reduce downtime, increase storage capacity and so on. IT maintenance requires ongoing costs and that you can not be one hundred percent certain that there will be no money spent on IT in the future. 2) It may not be necessary for Encosta Memories to employ a programmer to design a new system if they purchase the software externally. The design of the software can be done by the suppliers to the companies specifications. Since Encosta Memories does not have any IT experts they can consider outsourcing their IT work. Thus In-house software is not an option because they do not have any IT experts. 3) System Development Life Cycle (SDLC) requires regular reports to top management regarding IT maintenance. For example the security protection, customer related, and its performance etc. Requires regular reporting to top management. Application Service Provider (ASP) the service is provided by the vendor but the user may access it through the internet or the Virtual Private Network, they also provide regular updates and bug fixes. Although the information is provided for the users via the internet, it may still need someone...
Words: 1237 - Pages: 5
...Encosts Memories Case 1: Encosta Memories 1) a) No, it is not correct. b) The statement is not correct because once a system is acquired. Whether it is internally designed or externally purchased. It still requires regular IT maintenance. Some Examples are IT security, protection from hackers or problems, IT technical support. IT performance includes the ability to reduce downtime, increase storage capacity and so on. IT maintenance requires ongoing costs and that you can not be one hundred percent certain that there will be no money spent on IT in the future. 2) It may not be necessary for Encosta Memories to employ a programmer to design a new system if they purchase the software externally. The design of the software can be done by the suppliers to the companies specifications. Since Encosta Memories does not have any IT experts they can consider outsourcing their IT work. Thus In-house software is not an option because they do not have any IT experts. 3) System Development Life Cycle (SDLC) requires regular reports to top management regarding IT maintenance. For example the security protection, customer related, and its performance etc. Requires regular reporting to top management. Application Service Provider (ASP) the service is provided by the vendor but the user may access it through the internet or the Virtual Private Network, they also provide regular updates and bug fixes. Although the information is provided for the users via the internet, it may still need someone...
Words: 1239 - Pages: 5
...Accounting Information Systems 4e Brett Considine, Alison Parkes, Karin Olesen, Yvette Blount & Derek Speer by Alison Parkes John Wiley & Sons Australia, Ltd 2013 Chapter 9: Transaction cycle – the revenue cycle Discussion Questions 9.1 Brisbane Ltd has always had a strategy of product differentiation; that is, providing high quality products and extracting a price premium from the market. During the recent economic downturn, Brisbane Ltd has seen its customer base diminish and has decided to move strategically to a cost leadership strategy, that is, to try to sell more products at a lower price. (a) What are the implications of this strategy change for the revenue cycle? (LO1). This strategy change will have big implications for the revenue cycle, which is fundamentally driven by the level of sales. All existing policies and procedures will be geared around volume, pricing and quality targets flowing from the product differentiation (high price / high quality) strategy. To move to a cost leadership (high volume / low price) strategy requires revisiting and realigning existing policies and procedures. (b) What changes would you expect to see in the revenue cycle? (LO4). Assessing changes in the order of the processes in the revenue cycle: 1.1 The inventory check would be performed as described however the policy relating to tolerances on inventory decisions may alter, allowing Brisbane Ltd to accept orders that they may previously...
Words: 8837 - Pages: 36
...People often confuse the roles of bookkeepers, accountants and certified public accountants (CPAs). It's not surprising since many of their duties overlap, but the overall responsibilities of each role and the level of authority held by the positions differ. They all share fiscal responsibility – in degrees – for the company or organization for which they work. Bookkeepers Often considered by accountants and CPAs as just technicians or clerks, bookkeepers perform some of the same daily tasks as do accountants and certified public accountants. Many bookkeepers work as freelancers for small businesses in need of financial recordkeeping. Bookkeepers maintain daily accounting records, posting debits and credits, generating invoices for clients and checks for vendors as well as handling payroll. Many small business owners often double as bookkeepers. Bookkeepers typically lack the education of an accountant or CPA, as they gain on-the-job experience. Professional organizations for bookkeepers help to improve professional recognition for bookkeepers by accounting professionals as well as providing certification programs of abilities and skills. Accountants Accountants have a four-year college degree. While many accountants have an educational background in accounting, some are more general business majors. Companies that generate more than a million dollar in sales each year might have an accountant on staff or hire the services of a professional accountant from an accounting firm...
Words: 1915 - Pages: 8
...hold 783 megabytes of data. A double-sided, double-layer DVD can hold 15.9 GB of data, which is about eight hours of movies. These conventional storage mediums meet today's storage needs, but storage technologies have to evolve to keep pace with increasing consumer demand. CDs, DVDs and magnetic storage all store bits of information on the surface of a recording medium. In order to increase storage capabilities, scientists are now working on a new optical storage method called holographic memory that will go beneath the surface and use the volume of the recording medium for storage, instead of only the surface area. Three-dimensional data storage will be able to store more information in a smaller space and offer faster data transfer times. Holographic memory is developing technology that has promised to revolutionalise the storage systems. It can store data upto 1 Tb in a sugar cube sized crystal. Data from more than 1000 CDs can fit into a holographic memory System. Most of the computer hard drives available today can hold only 10 to 40 GB of data, a small fraction of what holographic memory system can hold. Conventional memories use only the surface to store the data. But...
Words: 3539 - Pages: 15
...ENGINEERING ECONOMY FIFTEENTH EDITION Solutions Manual WILLIAM G. SULLIVAN Virginia Polytechnic Institute and State University ELIN M. WICKS Wicks and Associates, L.L.P. C. PATRICK KOELLING Virginia Polytechnic Institute and State University © 2012 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This publication is protected by Copyright and written permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permission(s), write to: Rights and Permissions Department, Pearson Education, Inc., Upper Saddle River, NJ 07458. Solutions to Chapter 1 Problems A Note To Instructors: Because of volatile energy prices in today's world, the instructor is encouraged to vary energy prices in affected problems (e.g. the price of a gallon of gasoline) plus and minus 50 percent and ask students to determine whether this range of prices changes the recommendation in the problem. This should make for stimulating inclass discussion of the results. 1-1 Because each pound of CO2 has a penalty of $0.20, Savings = (15 gallons $0.10/gallon) (8 lb)($0.20/lb) = $1.34 If Stan can drive his car for less than $1.34/8 = $0.1675 per mile, he should make the trip. The cost of gasoline only for the trip is (8 miles 25 miles/gallon)($3.00/gallon) = $0.96, but other costs of driving, such...
Words: 5098 - Pages: 21
...reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the Rwanda Ministry in charge of ICT in the Office of the President. List of Acronyms AGAGE AISI AMIS ARTEL BNR BPO CD CERT COMESA CNS-ATM CS CSIRT CTC FWG DCRS EAPP EASSy EDPRS e-GOV EMIS EMR EQMS ERMS FMS FY GDP GIS GNI GNP GoR G2B G2C G2G HIV HLSC HRMS ICT ICT4D IDS IPAR IPS ISP ISPA ITU IXP JICA Advanced Global Atmospheric Gases Experiment African Information Society Initiative Agriculture management Information System Africa Rural Telecommunication Banque National du Rwanda Business Processing Outsourcing Community Development Computer Emergency Response Team Common Market for Eastern and Southern Africa Communication Navigation Surveillance /Air Management Cyber Security Computer Security Incident Response Team Coordination Technical Committee Focus area Working Group Develop a Digital Court Recording System East African Power Pool Eastern Africa Submarine Cable System Economic Development & Poverty Reduction Strategy (2008-2012) e-Government Education Management Information System Electronic Medical Records Electronic Queue Management System Electronic Records Management System Financial Management Systems Fiscal Year Gross Domestic Product Geographical Information System Gross National Income Gross National...
Words: 28160 - Pages: 113
...INTERNAL CONTROL SYSTEM Ascertaining Internal Control System Methods of ascertaining the control systems are summarized as follows: * Examining previous audit work, * Client’s own documentation of the system, * Interviews with client’s staff, * Tracing transactions, * Examining client’s documents, * Observation of procedures. a. Examining previous audit work: The audit work should provide a record of the previous audit and how the system operates. Any change in the audit work should be documented for updating. b. Clients own documentation of the system: Some organizations have their on Standard Operating Procedures (SOP). These Standard Operating Procedures provides source of information and to the existing control systems. It is therefore important to check whether the system as described in the (SOP) is what actually practiced. c. Interview with staff: During various stages of the audit, the auditor will need to some members of the staff of the client and find out how they carry out the assigned duties. These questions will reveal existing control and give indication of potential problems. d. Tracing transactions: Walk through checks allow auditors to identify any examples of actual procedures that vary from intended procedures. It also helps the understanding of the entire process as well as identification of risks. e. Examining client’s documents: The auditor can also ascertain the clients control systems by examining...
Words: 1113 - Pages: 5
...were personal fitness training and fitness classes of various types including aerobics, spinning, body sculpting, air boxing, kickboxing, hip hop, step and pump, dynamic stretch, Pilates and yoga. Private Fitness LLC Rate for services offered: Services Offered Rate per hour Personal training client’s $ 50/hr Prime Time (5:30-9:00 am & 4:00-9:00 pm) $ 50/hr Lean Time (9:00 am-4:00pm) $ 35/hr Students $ 12/hr Discounts for prepayments Private Fitness LLC established in the motivation and inspiration of Rosemary Worth as a former finalist in Ms. Fitness USA competition and since she was an aerobics instructor she decided to start her own Private Fitness by using her personal savings plus a bank loan in order to renovate the facility of her club and acquire necessary fitness equipments by spending $150,000. Rosemary herself ran most the spinning classes and some aerobics classes. Also she contracted with five instructors. The instructors were paid on commission which ranged, between 20% and 50% of revenue. She also hired Kate Hoffman, one of the instructors and long-time friend. Kate’s primary task included marketing, facility upkeep, scheduling of appointments and record keeping. She was paid a salary plus a commission based on gross revenues. She was proven to be an effective marketing manager since clients was growing. Suddenly, Rosemary distrusts Kate when $60 was replaced with $20 in the cash drawer. And one of the instructors mentioned...
Words: 1136 - Pages: 5
