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Sample Balance Sheet for Recording Company - Excel

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Sample Balance Sheet for Recording Company - Excel Powered By Docstoc
					Company (Name):
Fiscal Year End (Date):                                                                A total of 64 tests have been                          Contains detailed testing                                                          Links to the pre-populated test
                                                                                       designed to evaluate ALL KEY risks                     instructions, rather than generic                                                  sheets with fill-in fields for
Tested on (Date)/ tested by (Name):
                                                                                       based on best practices and the                        descriptions of the tests to be                                                    company-specific information.
Tested in (System):


Inventory Management - Audit Program for SAP R/3 - SAMPLE
Control Activity                      Control         Control        IT Nature        Control Rating Query       Testing Procedures:                                                                                                  Testing Reference         Conclusion    Exception Details
                                      Activity Type   Nature         IT Dependent/    High/          No          For each control activity selected for testing, auditor needs to perform adequate testing procedures to gain         Reference to              Effective/    For ineffective controls
                                      Preventive/     Manual/        Non IT-          Medium/                    reasonable assurance that controls operate effectively in accordance with established policies, procedures, and      supporting evidence       Ineffective
                                      Detective       Automated      Dependent        Low                        guidelines. The following testing procedures will assist auditors in performing tests of control for each control    considered pertinent
                                                                                                                 activity.

Managing Inventory

Control Objective INV2: All adjustments to inventory prices or quantities are recorded. Adjustments to inventory prices or quantities are valid, recorded accurately, timely and in the appropriate period.
(Control Objective Assertion: [Balance Sheet] Inventory: Completeness, Validity, Recording, Cut-off & [Income Statement] Cost Of Sales: Completeness, Validity, Recording, Cut-off)
Control Objective Background: Incomplete, inaccurate, invalid or untimely recording of inventory quantity and pricing adjustments can lead to misstatement of inventory in the financial statements,
misappropriation of inventory, issuance of inappropriate pick and store instructions, giving erroneous information to customers and/or missing sales opportunities, making inappropriate selling pricing decisions.
INV2.05: Only authorized personnel Preventive         Automated      IT Dependent     High                21     Perform the following procedures to produce a listing of users with access to open and close the material master             Tab 12
have the ability to maintain:                                                                                    posting periods in SAP R/3 using transactions MMPV and MMRV:
• Material master posting periods.                         In addition to the written step-by-step
                                                           instructions, screen-prints from SAP will             Execute transaction code SUIM
                                                           be provided to visually assist those new              Proceed to the Users By Authorization Values screen via "User " -> "Users By Complex Selection Criteria " ->
                                                           to the system.                                        "By Authorization Values "


                                                                                                                 AUTHORIZATION OBJECT 1:
                                      Covers ALL principal inventory management                                  • S_TCODE:
                                      subprocesses:                                                                MMPV (Open and Close the Period for Materials Ledger) OR
                                      • Managing Inventory                                                         MMRV (Allow Posting to Previous Period)
                                      • Receiving and Storing
                                      • Requisitioning Materials                                                 AUTHORIZATION OBJECT 2:
                                      • Producing & Costing Inventory                                            • M_MATE_PER:
                                      • Handling Finished Products                                                 Activities (AKTPR): 01 (Create) OR 02 (Change) OR 50 (Move) OR 51 (Initialize)
                                      • Shipping Finished Products                                                 Company Code (BUKRS): * (means SOME/ANY plants) or restrict based on the scope of the audit
                                      • Maintaining Inventory Master File
                                                                                                                 Export results to the Tab referenced in the "Testing Ref." Column for further analysis. Review whether access is
                                                                                                                 appropriate for the users to have such access, based on their job responsibilities and established policies,
                                                                                                                 procedures, standards, and guidance. Compare the results of the test with the information obtained from the
                                                                                                                 interviews with the individuals responsible for the control activity. Investigate any discrepancies. Document your
                                                                                                                 conclusions.


                                                                                                          22     Material master posting periods are administered within the inventory management module. The use of material                     N/A
                                                                                                                 master posting periods helps ensure that certain data is updated in the correct period, and goods movements             (if needed, include
                                                                                                                 are always posted to the correct period. Material master periods are normally closed once a month at the             reference to supporting
                                                                                                                 beginning of a new period. Once a period is closed, a new period is set up making it possible to perform goods        evidence considered
                                                                                                                 movements with reference to the new period.                                                                                   pertinent)




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                                                                                                                                                                                                                 Page 1 of 7
                                                                                        22                                                                                                                                   N/A
Control Activity          Control         Control     IT Nature       Control Rating Query   Testing Procedures:                                                                                                 Testing Reference
                                                                                                                                                                                                                    (if needed, include  Conclusion   Exception Details
                          Activity Type   Nature      IT Dependent/   High/          No      For each control activity selected for testing, auditor needs to perform adequate testing procedures to gain        Reference to supporting Effective/
                                                                                                                                                                                                                 reference to                         For ineffective controls
                          Preventive/     Manual/     Non IT-         Medium/                reasonable assurance that controls operate effectively in accordance with established policies, procedures, and       evidence considered Ineffective
                                                                                                                                                                                                                 supporting evidence
                          Detective       Automated   Dependent       Low                    guidelines. The following testing procedures will assist auditors in performing tests of control for each control   considered pertinent
                                                                                                                                                                                                                          pertinent)
                                                                                             activity.
                                                                                             Perform the following procedures to determine if SAP R/3 has been configured to control the postings to the
Managing Inventory                                                                           previous periods:
                                                                                             • Execute transaction MMPV (Open and Close the Period for Materials Ledger)
                                                                                               Check the 'Allow Posting to the Previous Period' indicator
                                                                                               This indicator allows postings to previous periods (back posting)
                                                                                               - If set, postings to previous periods is allowed
                                                                                               - If not set, postings to previous periods is not allowed. However, it is set again
                                                                                                 automatically during period closing, thus re-allowing postings to previous periods


                                                                                             If the organization does not want the indicator to be set automatically during period closing, the indicator
                                                                                             'Disallow back posting' should be set. Perform the following procedures to determine if the indicator 'Disallow
                                                                                             back posting' is set:
                                                                                             • Execute transaction MMRV (Allow Posting to Previous Period)
                                                                                                Check the 'Disallow back posting' indicator

                                                                                             Compare the settings observed during the tests outlined above with company policy and document your
                                                                                             conclusions.


               • • •                                                                                                                                • • •




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                                                                                                                                                                                         Page 2 of 7
Control Activity                      Control         Control        IT Nature        Control Rating Query       Testing Procedures:                                                                                                 Testing Reference      Conclusion    Exception Details
                                      Activity Type   Nature         IT Dependent/    High/          No          For each control activity selected for testing, auditor needs to perform adequate testing procedures to gain        Reference to           Effective/    For ineffective controls
                                      Preventive/     Manual/        Non IT-          Medium/                    reasonable assurance that controls operate effectively in accordance with established policies, procedures, and     supporting evidence    Ineffective
                                      Detective       Automated      Dependent        Low                        guidelines. The following testing procedures will assist auditors in performing tests of control for each control   considered pertinent
                                                                                                                 activity.
*** THIS IS A SAMPLE, NOT A COMPLETE AUDIT PROGRAM ***
Managing Inventory
The complete audit program is available at http://soxmadeeasy.com/SAP_Inventory.html and contains 64 tests designed to help audit, risk and security professionals attain reasonable assurance that controls over
Inventory Management business cycle in SAP R/3 operate effectively and in accordance with management's intentions, including:

• Managing Inventory - controls to ensure that inventory is salable or usable and that adjustments to inventory prices or quantities are valid, recorded accurately, timely and in the appropriate period:
  - Monitoring procedures for slow-turnover inventory (MC46, B5M, MC50, MC.B, etc.)
  - System edits for financial documents (document type, posting keys, tolerance groups, etc.)
  - Monitoring changes to inventory prices and quantities (CKMD, MB51, MM04, MB59, etc.)
  - Access to maintain work centers in SAP R/3 (CR01, CR02, etc.)
  - Access to maintain prices, price lists, & pricing conditions (VK11-VK14, V-41 - V-51, etc.)
  - Access to input physical inventory counts (LI11/LI11N, LI12/LI12N, LI20, LI21, MI01-MI10, etc.)
  - Access to maintain material master posting periods (MMPV, MMRV, etc.), and more.


• Receiving and Storing Raw Materials and Purchased Inventory - controls to ensure that recorded purchased inventory (including raw materials) represent materials acquired by the entity
  and that purchased inventory/raw materials are recorded accurately, timely and in the appropriate period:
  - Monitoring changes to goods received (MBSM, etc.)
  - Access to input, change, or cancel goods received (MB01, MB0A, MBST, MB31, MB1C, etc.)
  - Maintenance and monitoring of the Goods receipt/Invoice receipt (GR/IR) account (MR11, MB5S, etc.)
  - Access to settle purchase orders using Evaluated Receipt Settlement (ERS) functionality (MRRS, MRRL), and more.

• Requisitioning Materials - controls to ensure that transfers of raw materials to production are recorded accurately and in the appropriate period:
  - Access to maintain Bill of material (CS80, CS01, CS02, etc.)
  - Monitoring inventory in transit (MB5T, etc.)
  - Access to issue goods & post transfers between plants (MB1A, MB1B, MB11, MIGO, MIGO_GI, etc.), and more.

• Producing & Costing Inventory - controls to ensure that production costs are consistent with actual direct and indirect expenses associated with production, etc.:
  - Monitoring costs associated with process and production orders (CK13, COR3, etc.), and more.

• Handling Finished Products - controls to ensure that finished goods are recorded completely and accurately in the appropriate period :
  - SAP R/3 edits and validates input data for goods received (OMCJ, etc.)
  - Reconciliation of inventory counts to the inventory records & to quantities recorded in the General
    Ledger (RM07IMAT, RM07IINV, RM07IDOC, RM07IDIF, RM07ICDD, RM07MBST, etc.), and more.

• Shipping Finished Products - controls to ensure that shipments are recorded accurately, timely and in the appropriate period and the costs of shipped inventory are accurately recorded
  and transferred from inventory to the cost of sales:
  - Access to maintain sales orders, inquiries, quotations, contracts, scheduling agreements, delivery & billing documents (VA01, VA02, VA11, VA12, VA21, VA22, VA31, VA32, VA41, VA42, VL01,VL01N,
    VL01NO, VL02, VL02N, VF01, VF02, VF11, FB01, etc.)
  - Monitoring incomplete and blocked sales orders (V.02, VA05, V.00, V.15, V23, V.14, VFX3, etc.)
  - Configuration of valuation areas, valuation classes, chart of accounts, assignment of the GL accounts, etc. (OMWM, OMWD, OX14, OX10, OX02, OBY6, OMSK, OMWB, FS03, etc.), and more.

• Maintaining Inventory Master File - controls to ensure that only valid changes are made to the inventory management master file:
  - Access to maintain material master file (MM01, MM02, MM06, etc.)
  - Segregation/separation of duties within SAP R/3 inventory functions
  - Monitoring procedures to ensure accuracy, completeness, and validity of the material master data, and much more.




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                                                                                                                                                                                                             Page 3 of 7
Mitigating Controls        Planned Remediation Procedures   Planned           Remediation   Ref. to Post-
For ineffective controls   For ineffective controls         Remediation       Status        Remediation
                                                            Date              Completed/    Testing Details
                                                            For ineffective   In Progress   If applicable
                                                            controls




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                      Page 4 of 7
Mitigating Controls        Planned Remediation Procedures   Planned           Remediation   Ref. to Post-
For ineffective controls   For ineffective controls         Remediation       Status        Remediation
                                                            Date              Completed/    Testing Details
                                                            For ineffective   In Progress   If applicable
                                                            controls




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                      Page 5 of 7
Mitigating Controls        Planned Remediation Procedures   Planned           Remediation   Ref. to Post-
For ineffective controls   For ineffective controls         Remediation       Status        Remediation
                                                            Date              Completed/    Testing Details
                                                            For ineffective   In Progress   If applicable
                                                            controls




e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                      Page 6 of 7
e06e4dc0-09a1-45b0-88a4-ba2e27460277.xls                                                                        Tab 12




Users with access to open and close the material master posting periods in SAP R/3 using transactions MMPV and MMRV:                                                   Click to Return To The Audit Program

Count        User ID       User Name                  Locked?                       Valid From   Valid Through       User Type                      Access Appropriate Exceptions     Comments/ Exception Detail
*Insert                                               (Yes/No)                                   *Exclude IDs that   *Exclude D (System) and C      as per the Job     Noted?
additional                                            *Exclude locked user IDs                   are past their      (Communication) IDs (no end    Responsibilities?  (Yes/No)
rows as                                               ("0" or "Blank" in this field              validity date (no   user access); leave A          (Yes/No)
needed                                                means that user ID is NOT                  access)             (Dialog) and S (Service) IDs
                                                      locked)                                                        for analysis
1
2
3
4
5


Total              0                                                                                                                                        0                0




                                                                                                                                                                                                                   Page 7 of 7

				
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Description: Sample Balance Sheet for Recording Company document sample