Central Piedmont Community College- Internal Audit

Tamika Fleming

Sujets

• management

Informations

• Publié par: Urne
• Nombre de lectures: 19
• Langue: English

Extrait

Internal Controls
AA Roundup
April 30, 2008
Mary G. Elizondo
ComptrollerInternal Control Components
 Monitoring
 Control Environment
 Risk Assessment
 Control Activities
 Information & CommunicationInternal Control Components:
Monitoring
Monitoring includes the following:
 Supervising
 Observing
 Testing
 Reporting to Responsible IndividualsInternal Control Components:
Monitoring Activities Include
 Evaluation of Trends
 Reviews of Outstanding
Encumbrances
 Surprise Cash and Asset Counts
 Follow-up on complaints
 Review of Financial Reports
 Spot Checking of transactions to
ensure compliance with policies and
proceduresInternal Control Components:
Risk Assessment …
Is the identification and analysis of relevant
risks associated with the achievement of
objectives
Is an ongoing process that is a critical
component of an effective internal control
systemRisk Assessment
External Risk Factors
 Economic changes
 Changing student & community needs
 New/changed legislation & regulations
 Technological developments
 Natural catastrophes
 Competitive conditionsRisk Assessment
Internal Risk Factors
 New Personnel
 Low Morale
 Competency & Integrity of Personnel
 New or Revamped Information Systems
 Size of Organization
 Complexity & Volatility of Activities
 Geographical Dispersion of Operations
 Changes in Management ResponsibilitiesRisk Assessment Analysis
Administrators must determine …
 What can go wrong
 What areas have the most risk
 What assets are at risk
 Who is in a position of riskAddressing Identified Risk:
Control Activities
Control activities are the
policies and procedures that
help ensure that management
directives are carried outExamples of
Control Activities
 Authorizations
 Segregation of Duties
 Recording
 Safeguarding
 Reconciliations