2.3 Types of Internal Control System
Galloway (1994) puts forward that controls can be either preventative or detective. Preventative controls try to deter or avoid undesirable events from happening. Examples or preventative controls include: separation of duties, proper authorization, adequate documentation, passwords and physical control over assets and even traffic signs.
According to Galloway (1994), detective controls try to identify errors or irregularities which have already happened. Reviews, analyses, reconciliations, periodic physical inventories, audits and security cameras are samples of detective controls. Both categories of controls are vital to an effective internal control system. From a quality viewpoint, preventative controls
…show more content…
Reviews of Performance (Detective): Management compares information about existing performance to financial plan, predictions, previous periods, or other yardsticks to measure the level to which goals and objectives are being attained and to detect unexpected outcomes or uncommon situations that necessitate follow-up.
3. Security of Resources (Preventive and Detective): Access to tools, stocks, securities, cash and other resources is limited; assets are from time to time control to amounts shown on control records.
4. Segregation of Duties (Preventive): Duties are divided between different people to lessen the risk of error or wrong action. Usually, duties for approving transactions, recording transactions (accounting), and handling the related asset (custody) are divided.
- A study showed that auditors make judgments based on their assessment of internal control strengths and weaknesses. Auditing practice and research have recognized that the segregation of duties is an important aspect in this evaluation procedure. However, research on how the segregation of duties affects auditors' judgments has been limited because of the wide variety of duty segregation patterns possible in accounting systems.
(July 1, 1994, Journal of Accounting, Auditing and Finance)
2.3.1 Clear Lines of Authority and
The security controls, policies, procedures, and guidelines were tested using the security testing plan that was evaluated by a security team to correct and report flaws in the system design. The only major flaw doesn’t relate to the network or the physical system itself, but instead policies and procedures seem to be at the highest risk. Policies and procedures explain that the chain of custody during media transportation and disposal should be logged and tracked impeccably. I believe putting stronger controls in place for the transportation of media would lower the risk of exposed confidentiality tremendously. I believe each device used to transport should be trackable at any given time, rather than just by logs.
Do we have a backup power system for our offices? Protection of customer personal information (in addition to security measures stated elsewhere in this audit checklist) 54. Do we only giving access to personal information to a person who is verified to be able to receive that information? 55.
Fiscal transparency is a critical element in today’s public financial management system. Transparency also provides a window into government budgets for citizens, helping to hold their leadership accountable. Transparency and honesty in government finance are so integral, in 1982 the U.S. Government established the Federal Managers Financial Integrity Act (FMFIA). An Act to amend the Accounting and Auditing Act of 1950 to require ongoing evaluations and reports of the adequacy of the systems of internal
The NPIA (National Policing Improvement Agency) notes that effective performance management framework for police assesses individuals on 12 hallmarks spread over three areas: people and relationships, structures and processes, data and analysis. [footnoteRef:11] [11: KPMG, cutting through the complexity, Toronto Police Services Board, Opportunities for the future for the Boards Consideration] The establishment of a performance management framework for all areas establishes clear direction and supports the operational and community priorities. Ultimately, the use of metrics will enhance our organizations operational effectiveness and allow for a modernized approach to resource allocation and greater accountability and transparency to the community we serve.
There are four characteristics of a controlled environment and they include the following: status hierarchy,
Justina Toland- Tennant Unit 4 Assignment Chapter 4 Exercises and Review Chapter 4: Exercise 4.26 #4 49521 Hernia repair, inguinal, incarcerated Chapter 4: Exercise 4.31 #4 50920 Fistula, closure, ureter cutaneous Chapter 4: Exercise 4.34 #10 54322 Hypospadias, repair, one stage, meatal advancement Chapter 4: Exercise 4.37 #8 58956 Hysterectomy, abdominal, total Chapter 4: Exercise 4.41 #4 61312 Craniotomy, evacuation of hematoma Chapter 4: Exercise 4.43 #8 67700-RT Incision and drainage, abscess, eyelid Chapter 4: Review: Coding for Facility # 12 11305-LT Shaving, skin lesion Appendix C: Case Number #9 52630 Prostatectomy, transurethral 9. 52601 Prostate, excision, transurethral; or Prostatectomy,
The management report is designed to enable customers to understand the conclusions and recommendations quickly without taking much time in reading. On the other hand, components of report includes five major elements below: 1- Prefatory Information, which includes transmittal paper, page title, Authorization report, executive summary and table of contents 2- Introduction, which includes problem statement that is a brief explanation of issues that need to be discussed such as research purposes.
Many people in the company need access to data to help them do their job better. The main questions revolve around who needs what data, and who chooses what data gets to be shared. Looking at all the pieces, as well as the IT and information assets, the governance of the data belongs to a data owner (Khatri & Brown, 2010). The main questions to be answered must include who is the data owner? Who is responsible for data quality?
ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.
Analysis • This section is regarded as the most critical step in writing an effective accounting memo by bringing together the required facts of the research, any supporting authoritative literature, and an accountants overall evaluation before forming a conclusion. • Analysis includes information from relevant guidance, along with an accountant’s own words about how the guidance is applicable. • The memo should contain enough authoritative guidance that the user will not need to perform additional research in the Codification. • Make sure to utilize the concept known as the “guidance sandwich.”
Performance Review: Review process ensures that leaders and team members meet regularly to discuss strengths and development opportunities. Many team members meet with their leader four times a year to discuss business goals, performance, development and career goals, and all team members participate in a formal performance review once a year. Feedback Employee feedback is the core of personal and professional growth at Target Company, Feedback can help an employee get better at what they do, and surprisingly employees crave feedback. The company provide the employee with continues feedback, as a return the employee being more commitment and aware of all the job
The first step that the auditor should take is to gather as much information about any security procedures and policies that may have been in use following the information collected from the records available. Since each policy may have a different aspect that it works on, the findings from the audit may present evidence that may be vital in identifying the existing procedures or the absence of any policies or procedures. The existence of policies and procedures enables a company to reduce the occurrence or the impacts of a given risk. The lack of such policies may lead to reduced risk management
However, the corporate collapse of HIH Insurance in Australia has raised more questions than answers regarding the integrity of the accounting and auditing profession. The audit expectation gap is the difference between the actual performance of an auditor and what society thinks. According to the American Institute of Certified Public Accountants in 1992, the expectation gap is defined as the difference between what the public and financial users think audit responsibility is and what the auditors think their role is(?). The importance of professional scepticism is essential in enhancing the societal view on auditors. An auditor supplies the independence and objectivity to a financial report complementing the high expectations of third party users
Information Governance Training. 2.2 If there are concerns relating to handling and sharing information we need to apply an individual measures e.g. staff training, CRB checks and vetting procedures, staff supervision and management; system measures e.g. electronic audit trails, encrypted passwords, information checking systems. There has to be agreed ways of working with specific policies and procedures, physical measures e.g. secure storage, CCTV 3 There is an importance of keeping legible, accurate, complete and up-to-date records in order to meet legislative requirements and to ensure clarity of information for everybody involve in care for that particular person and continuity of
However, financial performance subsists with different levels of organisation, which is concerned with measuring financial performance of organisation. These measures are categorised into four that includes profitability, gearing, liquidity or working capital, and investor ratios. However, the financial plan of organisation is associated with operating plan since financial plan involves revenue and expenses for the activities that are linked with each objective. Hence, the main reason, in monitoring financial plan is to audit the committee (Hasan, 2011).