This essay focuses on internal control that relates to the five assertions .the test of controls will need to be identify for each assertion and internal control. For this assignment, you will write and submit.
internal control that relates to the five assertions
Now that you have identified the revenue-related internal control that relates to the five assertions (existence, completeness, accuracy or valuation, rights and obligations, and presentation and disclosure), the test of controls will need to be identified for each assertion and internal control. For this assignment, you will write and submit 400–500 words that set specific tests of internal controls for the 5 internal controls related to management assertion.
With a good internal control system in place, other considerations to keep in mind include:
- Regularly communicate updates and reminders of policies and procedures to staff through emails, staff meetings and other communication methods.
- Periodically assess risks and the level of internal control required to protect University assets and records related to those risks. Document the process for review, including when it will take place. (Example: Determine that all security activities, reconciliation processes and separation of duties will be reviewed annually. They will, however, be staggered. Security activities will be reviewed in July, reconciliation in September and separation of duties in March.)
- Management is responsible for making sure that all staff are familiar with University policies and changes in those policies.
Internal control is all of the policies and procedures management uses to achieve the following goals.
- Firstly, Safeguard University assets – well designed internal controls protect assets from accidental loss or loss from fraud.
- Secondly, Ensure the reliability and integrity of financial information – Internal controls ensure that management has accurate, timely and complete information, including accounting records, in order to plan, monitor and report business operations.
- Thirdly, Ensure compliance – Internal controls help to ensure the University is in compliance with the many federal, state and local laws and regulations affecting the operations of our business.
- Further, Promote efficient and effective operations – Internal controls provide an environment. Managers and staff can maximize the efficiency and effectiveness of their operations.
- Accomplishment of goals and objectives – Internal controls system provide a mechanism for management. Monitor the achievement of operational goals and objectives