Tools

The following tools were published on KnowledgeLeader this week:

Fixed Asset Review Report

Utilize our Fixed Asset Review Report to conduct a thorough internal audit of your company’s fixed asset management processes. This sample was designed for the retail industry but can be customized to fit any industry and used to systematically review and analyze current policies, procedures and practices related to fixed assets, identifying gaps and inefficiencies that could lead to financial inaccuracies or compliance issues. 

Inventory Management Questionnaire

The Inventory Management Questionnaire allows auditors to gain valuable insights into an organization's inventory management processes. The attached sample questionnaire is structured around key areas such as forecasting, inventory accuracy, supplier base optimization and tactical management. By utilizing this tool, auditors can better understand how an organization strategizes its inventory management to meet market demands while maintaining high customer satisfaction.

System Implementation Process Questionnaire

Meticulously evaluate and manage the various aspects of system implementations and upgrades with the three sample system implementation questionnaires included in this tool. By providing structured questions across multiple areas such as process integrity, application security, data conversion, system interfaces, implementation effectiveness, training, technical/user support, and project management, this questionnaire assists stakeholders in identifying potential risks and ensuring thorough preparation. 

Subsequent Events Policy

Establish a structured process for your company’s management to assess and handle events that occur after the balance sheet date but prior to the issuance of financial statements. Its primary purpose is to identify and evaluate conditions not present at the time the balance sheet was prepared, ensuring that significant events are either recognized or adequately disclosed within the footnotes of financial statements. 

Supplier Records and Management Policy

Our Supplier Records and Management Policy can be used to establish procedures for maintaining comprehensive records of all major suppliers, assess their value, and manage the company's relationship with them. This policy ensures that the firm obtains the best combination of quality and price from its suppliers. It contains definitions of key terms such as electronic supplier records, supplier payment terms and supplementary purchase orders.

Bank Deposit Cycle: Control Objectives and Audit Work Program

Use the structured framework in this audit program sample to assess the integrity and effectiveness of a bank's deposit processes. This audit tool focuses on several key objectives, including authorization, completeness, accuracy, substantiation of balances and access to assets. Organizations can expect detailed guidelines for evaluating process controls such as transaction authorization, data entry accuracy, periodic reconciliations and compliance with regulatory requirements.

Bank Expenditure Payroll Cycle: Control Objectives and Audit Work Program

The principal objective of this tool is to help department management analyze the effectiveness of the internal control structure over financial reporting for the expenditure payroll cycle at a bank. It outlines a structured approach for identifying potential areas of risk, evaluating the adequacy of existing controls and suggesting improvements. This includes detailed procedures for conducting audits, from planning through to execution, which ensures thorough coverage of all critical aspects of the organization's operations. 

Publications 

KnowledgeLeader has also published several publications this week.

The DoD Unveils the Cybersecurity Maturity Model Certification Program: A Primer for Defense Contractors

As cybersecurity threats evolve, the U.S. Department of Defense (DoD) has introduced a long-awaited pivotal framework aimed at bolstering the security of its national defense supply chain: The Cybersecurity Maturity Model Certification (CMMC) Program. This article explains how the DoD’s new program sets stringent compliance standards to protect sensitive data across the defense supply chain, enhancing national security.  

Are Boardrooms Getting More Diverse?

Corporate boardrooms have been expanding in recent years. In 2023 alone, there were 779 director appointments citing the reason for engagement as enlargement of the board, which translated to approximately 23% of total director engagements that disclosed a reason for appointment. In this article, Audit Analytics further examines the significant spike in the number of director engagements for the specific purpose of expanding the board.  

Recommended Resources 

This list of recommended resources from the web may be of interest to you. Click each link to learn more. 

1. "Majority Moves" in Tech: Finance Leaders Reveal Popular Practices
2. Do You Have Blind Faith in Your External Partners?
3. Former Church and Dwight CEO Settles Proxy Disclosure Claim