Cash Receipts Control Matrix

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Cash Receipts Control Matrix Powered By Docstoc
					This is the AuditNet Standard Risk Control Audit Matix which incorporates formats
used by many audit organizations in their documentation working papers. There are
format templates for risk control, audit procedures, questionnaires and checklists.
There is a blank workpaper and a report summary that can in used by audit
organizations. AuditNet has prepared a monograph for guidance on preparing and
developing audit work programs, checklists, questionnaires and matrices. The
monograph is available to AuditNet subscribers. For more information go to
www.auditnet.org
Audit Program Area: Cash Receipts

Control                             Process          Subprocess      Subprocess
#            Reporting Unit                                          Owner

CR-1         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable

CR-2         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable




CR-3         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable

CR-4         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable

CR-5         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable

CR-6         Domestic               Sales/Accounts   Cash Receipts   Credit Manager
                                    Receivable
Financial Statement   Control Objective                           Process Risk
Assertion

Existence,            Company assets are properly safeguarded The ability to handle and post cash
completeness, and                                             receipts is not adequately segregated
accuracy
Existence,                                                    The interface between the lockbox and
                      Cash received via the lockbox is accurate
completeness, and     and complete                            the Company's accounting system may
accuracy                                                      not be configured properly resulting in
                                                              inaccurate or incomplete cash receipt
                                                              information.
Completeness          Company assets are properly safeguarded Inaccurate posting of cash receipts to
                                                              customer accounts

Existence,            Company assets are properly safeguarded The ability to handle and post cash
completeness, and                                             receipts is not adequately segregated
accuracy
Existence,            Company assets are properly safeguarded The ability to handle and post cash
completeness, and                                             receipts is not adequately segregated
accuracy
Existence,            Cash receipts are posted to the proper      Cash receipts are not accurately posted
completeness, and     customer's account within the accounts      to the accounts receivable subledger
accuracy              receivable subledger
Gap           Control
Description

              Cash receipts are sent directly to the Bank of America lockbox


              The Cash Application Analyst reconciles the Lockbox Execution Report to the
              bank’s transmission report before proceeding to ensure the total cash received by
              the bank lockbox has been accurately and completely received by the Oracle
              system.

              The ability to process cash receipts within Oracle is limited to authorized personnel
              via designated system responsibility assigned through user name and password.

              When the manual checks are received, the applicable individual will immediately
              stamp the check with a restrictive endorsement

              Duties for endorsing and depositing the money in the bank account, posting the
              cash receipts to the customer’s accounts, and reconciling the bank account are
              adequately segregated
              Cash receipts are posted from the Post QuickCash Execution Report within
              Oracle; this report is reviewed by the Cash Application Analyst for any unapplied,
              unidentified or short-pay amount prior to posting.
Manual   COSO Control
or       Type           Comments
System
Manual                  Control Activity


Manual                  Control Activity




System                  Control Activity


Manual                  Control Activity   New control
                                           implement 2/04

Manual                  Control Activity   New control
                                           implement 2/04

System                  Monitoring
           Significant Control
W/P Ref.   Yes/No     Comment
Test                                                       Sample   W/P Ref.
                                                           Size

Verify existence of the company Lockbox Transmission       25       D-1
Report created by Bank of America detailing all customer
remittances on a daily basis
Obtain evidence supporting reconciliation between the      25       D-1
Lockbox Execution Report and the Transmission Report
exists


Review system generated access report and inquire of       1        D-2
management of appropriateness of acess

Review checks received directly by the Company noting      25       C
endorsement

Observe segregation of duties                              1        C


Ensure evidence of reconciliation between the report and   25       D-1
actual posting exists
                              Client Name
                      Internal Control Framework

          Date Completed:
          Completed By:
          Reviewed By:

          Question                                                  Yes No* Comments /Description




              To the best of my knowledge, the answers and comments noted above are accu



          Name and Title of Person Completing Form (please print)                            Name and Title of Department Dire


* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                   Signature of Person Completing Form                                                Signature of Department


                             7/6/2012
                          Date Form Completed                                                     Date of Department Directo




* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                           Employee Responsible for Task




s noted above are accurate and reflect the current



Name and Title of Department Director (please print)


            * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
            or is to be performed.                            Questionnaire
   Signature of Department Director



Date of Department Director's Signature




      * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
      or is to be performed.                            Questionnaire
Finding Ref #   Control Testing   Finding
Management Response & Treatment

				
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