Internal Control System Checklist

Internal Control governing body Checklist ACC/544 Monday declination 03, 2010 Dr. YouK modernistic Abstract Internal defy corpses ar purposed to aid in managing an array of risks, bandage monitoring the integrity and reliability of usable and pecuniary data. Internal ascendence systems gibe off the proactively of audits, at the same time as serving to ensure that policies and procedures atomic number 18 enforced to protect the companys financial learning, limiting account statement inaccuracies and fraud. The next checklist is a tool to ensure that the objectives of inside guard systems argon met. Internal Control System ChecklistEthical Governance and Standards Ethical standards are the foundation for inwrought control systems, where integrity is the elemental principle. Business ethics show characteristics of unobjectionable business conduct, while ethics in internal control systems ensures that these standards are communicated, executed, reinforced, and moni tored. When considering the avocation checklist for evaluating internal controls, terzetto phases of the control rating are also applied. The three phases are understanding, sagaciousness, and testing. I. Ethics & GovernanceYESNOComments ar the estimable standards exemplified by the board of directors?Are honourable standards analyseed with new charterees either in orientation or by pamphlet? Are the ethical standards woven into employee evaluations? Are handbooks tryd for ongoing survey of ethical standards? Is in that respect a act in buns to review and elucidate bad ethical calls? Are ethical standards woven into business standards? Are double-tongued attempts in reporting communicated as insufferable to employees and focal point? Electronic selective information bear on Electronic data bear on guarantees against wrongful human intervention with computer processing and other transactions in a given organization.Computer programs help prevent inlet to certain information across departments and roles. inside the phases of the control evaluation the auditor would require to ensure that each personar altogether understands his role and to protect the privacy of information given feeler. Ongoing assessment should be afforded to help each department period better manage user access and testing to ensure compliance. II. Electronic entropy ProcessingYESNOComments Are policies in place to overwhelm reference check, security, and boundaryination of employee security measures?Are the duties inwardly the data processing system adequately segregated per role? (such as technical support, software developer, ect. ) Is the Electronic entropy Processing system separate and self- active person from the operating and accounting departments? Is the Electronic Data Processing system such that it prevents retroflex documents from being introduced to the system? Are there adequate controls preventing changes to master files? Are there adequate co ntrols over data approach to include supervision, current instructions, key assay of important fields and self check digits?fiscal Reporting One of the three distinct objectives of internal control is to suffer the responsibility of ensuring that financial statements are reliable. The term reliable involves the expression of financial statements that are fairly presented in conformity with relevant financial reporting framework employed by management. The system of financial control over financial reporting and then includes the design and implementation of policies and procedures necessary by managers to provide reasonable assurance that the ompanys statements are presented in accordance with the introduction of accounting. Evaluation of financial reporting within internal control system should place emphasis on testing and assessment. The following checklist addresses some key areas of testing and assessment of internal control of financial reporting. III. Financial Reporti ngYESNOComments Is the statement of financial position ready monthly and reviewed by management and the finance committee? Are the responsibilities for the final review and approval of financial reports segregated from those for the preparation of reports?Are monthly, semi-monthly and annual reports prepared comparability income and expenses with approved budget and reviewed by the management and the finance committee? Did the company employ a char of accounts? Are the tasks for maintaining the everyday ledger suitably segregated from those for the appreciation of assets? Is there a written accounting policy and procedural manuals distributed to appropriate forcefulness? Checklists mainly service as a tool that some(prenominal) managers and auditors can use to review a specific departments internal control and for ongoing purposes also.Checklists should be both drafted and assessments completed by management who are accountable for the business processes. When completing the ch ecklist, simpleton yes or no responses prove a strong or weak internal control system where additional notes for good are observed. Multiple questions are unavoidable to make the proper assessment of a control system. In conclusion, internal control checklists are integrated with control evaluations to provide the best information about the functionality of a system where changes or adjustments can be made.