Details

Internal Controls Toolkit

Wiley Corporate F&A 1. Aufl.

von: Christine H. Doxey
60,99 €
Verlag:	Wiley
Format:	EPUB
Veröffentl.:	16.07.2019
ISBN/EAN:	9781119554417
Sprache:	englisch
Anzahl Seiten:	416

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Beschreibungen

Titelbeschreibung

Step-by-step guidance on creating internal controls to manage risk Internal control is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations, and policies. This is a "toolkit" approach that addresses a practical need for a series of standards of internal controls that can be used to mitigate risk within any size organization. Inadequate internal controls can cause a myriad of problems that adversely affect its ability to provide reliable, timely, and useful financial and managerial data needed to support operating, budgeting, and policy decisions. Reliable data is necessary to make sound business decisions. • Toolkit approach with detailed controls and risks outlined for key business processes • Foundational for SOX 404 initiatives • Key material to improve internal control efforts • Guidance during M&A projects Poor controls over data quality can cause financial data to be unreliable, incomplete, and inaccurate—this book helps you control that quality and manage risk.

Inhaltsverzeichnis

Introduction to The Internal Controls Toolkit 9 Introduction 9 Internal Controls And Fraud Prevention 9 Internal Controls And Fraud Prevention: Additional Statistics 10 Who Will Benefit From This Toolkit 11 About The Standards of Internal Control 12 How Were The Standards Developed? 12 How Are The Standards Used? 12 What Is The Basic Premise of The Standards? 12 When Should The Standard Be Updated? 12 What Is A Best Practice For Implementing And Using The Standards? 12 General Standards of Internal Control 13 How This Toolkit Is Organized 14 1.0 Background On Internal Controls 15 The Goals And Challenges of Internal Controls 15 Risk Based Internal Controls 15 Application of Internal Controls 16 The Three Critical Corporate Controls 17 The Background And History of Internal Controls 19 Securities Act of 1933 19 Securities Exchange Act of 1934 19 Trust Indenture Act of 1939 19 Investment Company Act of 1940 19 Investment Advisors Act of 1940 19 Foreign Corrupt Practices Act (Fcpa) of 1977 19 Comprehensive Crime Control Act – 1984 20 Federal Sentencing Guidelines For Organizations – 1991 20 Internal Control – Integrated Framework – 1992 And 2013 20 Coso’s Monitoring Guidance 21 Cobit – 1996 23 Systrust – 1999 23 Corporate Frauds – 2001-2002 23 U.S. Sarbanes Oxley Act of 2002 24 Enterprise Risk Management (Erm) Integrated Framework – 2004 And 2013 25 Example: Enterprise Risk Management (Erm) And The Application to The Procure to Pay (P2p) Cycle 26 An Erm Checklist 27 Internal Control Over Financial Reporting — Guidance For Smaller Public Companies - 2006 28 Guidance On Monitoring Internal Control Systems – 2009 28 Definition of Internal Controls 29 Types of Internal Controls And Control Mechanisms 29 Major Types of Internal Control 29 Compensating Controls 30 Other Controls 30 Organization Controls 30 Policy Controls 31 Procedure Controls 31 Supervisory Controls 31 Review Controls 31 Leveraging The Standards of Internal Control to Implement A Controls Self-Assessment (Csa) Program 32 Ethics And “Tone At The Top” 34 What Is ‘Tone At The Top’? 34 What Are The Components of An Effective Ethics Policy? 34 What Are The Components of A Well-Defined Code of Conduct? 34 What Are Examples of Poor “Tone At The Top”? 35 Code of Conduct Considerations 35 Entity Level Controls 36 Benefits For Entity Level Controls 36 “Tone At The Top” 36 Roles And Responsibilities For Internal Control 38 2.0 The Order to Cash (O2c) Process 42 2.1 Order Entry/Edit 45 2.1 Order Entry/Edit (Continued) 46 2.1 Order Entry/Edit (Continued) 47 2.2 Export Controls 48 2.2 Export Controls (Continued) 50 2.2 Export Controls (Continued) 51 2.3 Sales Contracts 53 2.3 Sales Contracts (Continued) 54 2.4 Credit 55 2.4 Credit (Continued) 56 2.5 Shipping 58 2.5 Shipping (Continued) 59 2.5 Shipping (Continued) 60 2.6 Revenue Recognition/Billing 61 2.6 Revenue Recognition/Billing (Continued) 62 2.6 Revenue Recognition/Billing (Continued) 63 2.6 Revenue Recognition/Billing (Continued) 64 2.7 Accounts Receivable (Ar) 66 2.7 Accounts Receivable (Ar) (Continued) 67 2.8 Collection 69 2.9 Cash Receipts And Application 70 2.9 Cash Receipts And Application (Continued) 71 2.10 Price Establishment 72 2.10 Price Establishment (Continued) 73 2.11 Promotional Activities 74 2.11 Promotional Activities (Continued) 75 2.11 Promotional Activities (Continued) 76 3.0 Treasury Process 77 3.1 General Treasury Controls 80 3.1 General Treasury Controls (Continued) 81 3.1 General Treasury Controls (Continued) 82 3.2 Financing Operations 83 3.2 Financing Operations (Continued) 84 3.3 Investment of Available Funds 85 3.3 Investment of Available Funds (Continued) 86 3.4 Foreign Exchange 87 3.4 Foreign Exchange (Continued) 88 4.0 Procure to Pay (P2p) Process 89 4.2 Purchasing/Ordering 99 4.2 Purchasing/Ordering (Continued) 100 4.2 Purchasing/Ordering (Continued) 101 4.2 Purchasing/Ordering (Continued) 102 4.3 Import Controls 103 4.3 Import Controls (Continued) 104 4.4 Receiving 105 4.4 Receiving (Continued) 106 4.4 Receiving (Continued) 107 4.5 Accounts Payable 108 4.5 Accounts Payable (Continued) 109 4.5 Accounts Payable Continued) 110 4.6 The Payment Process - General 111 4.6 The Payment Process – General (Continued) 112 4.6 The Payment Process – General (Continued) 113 4.7 The Payment Process - Travel And Entertainment 114 4.7 The Payment Process - Travel And Entertainment 115 4.8 Research And Product Development 116 4.8 Research And Product Development (Continued) 117 4.8 Research And Product Development (Continued) 118 4.9 Procurment Cards (P-Cards) 119 4.9 Procurment Cards (P-Cards) (Continued) 120 4.9 Procurment Cards (P-Cards) (Continued) 121 5.0 Hire to Retire (H2r) Process 122 5.1 Payroll Preparation And Security 125 5.1 Payroll Preparation And Security (Continued) 126 5.2 Payroll Payment Controls 128 5.2 Payroll Payment Controls 129 5.3 Distribution of Payroll 130 5.4 Compensation And Benefits 131 5.4 Compensation And Benefits (Continued) 132 5.5 Hiring And Termination 133 5.5 Hiring And Termination (Continued) 134 5.6 Education, Training, And Development 135 5.7 Contingent Workforce 136 5.7 Contingent Workforce (Continued) 138 6.0 The Supply Chain Process 139 6.1 Planning & Control 142 6.1 Planning & Control (Continued) 143 6.2 Inventory Control 144 6.2 Inventory Control (Continued) 145 6.2 Inventory Control (Continued) 146 6.3 Inventory Verification 147 6.3 Inventory Verification (Continued) 148 6.4 Inventory Valuation 149 6.5 Product Cost Management 150 6.5 Product Cost Management (Continued) 151 6.5 Product Cost Management (Continued) 152 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners 153 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners (Continued) 154 6.6 Original Equipment Manufacturers (Oems) / Alliance Partners (Continued) 155 6.8 Tranportation And Logistics 158 6.8 Tranportation And Logistics (Continued) 159 7.0 Record to Report (R2r) 161 7.1 International Transfer Pricing 166 7.2 Intercompany Transactions 167 7.2 Intercompany Transactions (Continued) 168 7.3 Accumulation of Financial Information 169 7.3 Accumulation of Financial Information (Continued) 170 7.4 Processing And Reporting of Financial Information (The Final Mile) 171 7.5 Fixed Assets 174 7.5 Fixed Assets (Continued) 175 7.5 Fixed Assets (Continued) 176 8.0 Government Contracts 177 8.1 United States Government Contracts - General 178 8.1 United States Government Contracts – General (Continued) 179 8.1 United States Government Contracts – General (Continued) 180 8.1 United States Government Contracts – General (Continued) 181 8.1 United States Government Contracts – General (Continued) 182 8.2 United States Government Contracts - Non-Commercial Products 183 8.2 United States Government Contracts - Non-Commercial Products (Continued) 184 8.3 United States Government Contracts - Commercial Products 185 8.3 United States Government Contracts - Commercial Products (Continued) 186 8.3 United States Government Contracts - Commercial Products (Continued) 187 8.4 Contracts With State And Local Governments And Educational Institutions Within The United States 188 8.5 Contracts With Governments Outside The United States 190 8.5 Contracts With Governments Outside The United States (Continued) 191 9.0 Records And Information Management 192 9.2 Standards of Internal Record Keeping Requirements 197 9.2 Standards of Internal Record Keeping Requirements (Continued) 198 9.2 Standards of Internal Record Keeping Requirements (Continued) 198 10.0 Computer, Telecommunication And Systems Controls 201 10.1 Owners, Users, And Service Providers 206 10.1 Owners, Users, And Service Providers 207 10.1 Owners, Users, And Service Providers (Continued) 208 10.1 Owners, Users, And Service Providers (Continued) 209 10.3 Computer Access Control 214 10.4 Network Operations And Security Controls 224 10.4 Network Operations And Security Controls (Continued) 225 10.5 Systems Development Methodology 228 10.5 Systems Development Methodology (Continued) 229 10.5 Systems Development Methodology (Continued) 230 10.6 Change Management 231 10.6 Change Management (Continued) 232 10.7 Computer And Telecommunications Backup For Production Restart/Recovery 235 10.8 Disaster Recovery And Business Contingency Planning 237 10.8 Disaster Recovery And Business Contingency Planning (Continued) 241 10.8 Disaster Recovery And Business Contingency Planning (Continued) 242 10.9 Input Controls 243 10.10 Output Controls 245 10.11 Paperless Transactions, Electronic Commerce, And Edi 247 10.12 Non-Company Networks And Bulletin Boards 250 11.0 Protection of Assets: Human, Physical And Intellectual 256 11.1 Security Framework 258 11.1 Security Framework (Continued) 259 11.1 Security Framework (Continued) 260 11.2 Perimeter Security 261 11.2 Perimeter Security (Continued) 262 11.3 Interior Security 264 11.3 Interior Security 265 11.4 Protecting Intellectual Property 266 12.0 The Insurance Process 268 12.1 Protection Against Physical Damage And Other Accidents 269 12.2 Insurance (Property & Casualty Risks) 270 12.3 Business Continuity 272 13.0 Environmental, Health, And Safety (Eh&S) 273 13.1 General Controls 275 13.1 General Controls (Continued) 276 14.0 Customer Services 277 14.1 Policy 279 14.1 Policy (Continued) 280 14.1 Policy (Continued) 281 14.2 Call Center Management 282 14.2 Call Center Management (Continued) 283 14.3 Warranty 284 14.3 Warranty (Continued) 285 14.3 Warranty (Continued) 286 14.4 Support Sales 287 15.0 Professional Services (Ps) 288 15.1 General Controls 290 15.1 General Controls (Continued) 291 15.2 Opportunity-Bid Process 292 15.2 Opportunity-Bid Process (Continued) 293 15.2 Opportunity-Bid Process (Continued) 294 15.3 Program Management 295 15.3 Program Management (Continued) 296 15.3 Program Management (Continued) 297 15.3 Program Management (Continued) 298 15.3 Program Management (Continued) 299 15.4 Customer Order Management 300 15.4 Customer Order Management (Continued) 301 15.4 Customer Order Management (Continued) 302 16.0 Entity Level Controls 303 16.1 Compliance And Compliance Screening 305 16.1 Compliance And Compliance Screening (Continued) 306 16.2 Internal Controls Roles And Responsibilities 308 16.2 Internal Controls Roles And Responsibilities (Continued) 309 16.4 Audit Committee Controls 313 16.4 Audit Committee Controls (Continued) 314 16.4 Audit Committee Controls (Continued) 315 17.0 Glossary 318 18.0 Addendum – Additional Tools 327 18.1 Example Internal Controls Policy 327 18.2 Delegation of Authority (Doa) Policy 330 18.3 Segregation of Duties (Sod) Policy 338 18.4 System Access (Sa) Policy 352 18.5 Pricing Policy Example 355 18.6 Testing Internal Controls And Selecting Sample Sizes 357 References 361

Autorenportrait

CHRISTINE H. DOXEY, CAPP, CCSA, CICA, CPC, is president of Doxey, Inc. Prior to forming her company, she served in executive positions with Verizon Business (formerly MCI), Hewlett Packard, Compaq, and Digital Equipment. Doxy is on the Advisory Boards of The Exchange Summit and The Institute of Internal Controls. She has authored several books and speaks at conferences globally on financial process best practices.

Back cover copy

An important guide to the standards of internal control and the risks they mitigate "The concept of internal control is one of the trademarks of effective governance and good business operations. Without a strong system of internal control, organizations cannot ensure that the interests of company stakeholders are being protected. Strong internal controls support organizational goals and objectives, while helping safeguard against the risks of financial loss, operational waste, environmental irresponsibility, corporate fraud, and even reputational damage that can be irreparable. Internal control over financial reporting continues to be a major area of importance in the governance of an organization." —From the Introduction Internal Controls Toolkit is an essential guide for implementing the standards of internal controls that are necessary for any organization that wishes to provide the safeguards necessary to mitigate risk. At once comprehensive and practical, the book offers suggestions for identifying roles and responsibilities within a company, highlights process improvements, ideas for creating process documentation, and analyzing root cause of potential risk.