Tools
The following tools were published on KnowledgeLeader this week:
Evaluation of Audit Committee Oversight Questionnaire
Because board and audit committee oversight is an element of the control environment, according to COSO, the independent auditor is required to evaluate audit committee oversight effectiveness as an integral part of their assessment of the control environment and monitoring controls. This questionnaire provides a comprehensive approach to evaluating the effectiveness of an audit committee in overseeing financial reporting processes and internal controls
System Management Risk Assessment and Control Audit Work Program
Since most financial transactions are processed and maintained in the IT environment, the IT function is critical for all financial audits. This System Management Risk Assessment and Control Audit Work Program will assist audit teams with identifying risks and related controls for logical security administration and monitoring, physical security, change management, problem management, and system availability.
Payroll Audit Work Program
A payroll audit can help a company provide an evaluation of the internal and business environment to ensure that the internal controls are in place and operating effectively, evaluate the effectiveness and efficiency of the payroll cycle process, and develop recommendations to effect meaningful change. The two sample work programs included in this document were designed to help you design a comprehensive and systematic approach to auditing your payroll processes.
Research and Development Expense Policy
Research and development expenses include the conceptual formulation, design and testing of product alternatives, construction of prototypes, and operation of pilot plants. This policy addresses how to account for these costs. According to this policy, costs related to research and development activities should be separately identified and charged to expense when incurred.
Rent Expense on Facilities Leases Policy
Get insights into recognizing rent expense on facility leases, including straight-line basis recognition and lease agreement criteria. According to this policy, a company should recognize a rent expense on a straight-line basis over the term of occupancy for lease agreements entered into, which include free rent, fixed escalation provisions, or concessions from the lessor in the form of cash payments or assignment of current obligations.
Customer Demo Units Policy
Get detailed procedures for demo unit transactions, invoicing, processing and collection issues with our Customer Demo Units Policy. In this policy, demo units are company products provided to prospective resellers and customers to evaluate and test before deciding whether to carry or buy the particular company product line.
Publications
KnowledgeLeader has also published several publications this week.
Auditor Changes Roundup: Q1 2024
Audit Analytics examines the latest audit firm landscape trends and insights in the first quarter of 2024. KPMG was the leader for net SEC audit client gains in the first quarter of 2024. The Big Four firm added 17 new public company clients and lost five for a net gain of 12 clients during the quarter
Internal Auditing Around the World: Volume 20
The new edition of Internal Auditing Around the World addresses how internal audit functions can become future-ready and resilient.here is much to learn from examining internal audit’s past — specifically, the last two decades — and applying this knowledge to propel the profession forward and enable our organizations' success. It’s even more powerful if we can conduct this examination by employing some of today’s advanced technologies.
SEC Rebuked in SolarWinds Decision. What Does It Mean?
In this Flash Report, we analyze the ruling and discuss why companies should take note of this decision and its broader implications. In its original lawsuit, filed in October 2023, the SEC alleged that SolarWinds had defrauded investors by concealing security weaknesses in its public filings in IPO registration documents and 8-K filings about its internal cybersecurity practices.
Recommended Resources
This list of recommended resources from the web may be of interest to you. Click each link to learn more.
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