Professional Documents
Culture Documents
David Griffiths
13 October 2013
or
or your
(Note that some cells have been completed with examples to give an
idea of the information which would be input into them)
Audit stages
The stages of an audit may include the following (see figure 5 in 'The
introduction to Risk Based Internal Auditing):
Define the scope in terms of risks to be checked
Meet staff involved to discuss scope and the audit process. Find out
about any risk registers they have.
Carry out walk through tests, that is, follow a representative sample
of transactions through the processes in order to fully understand the
processes and the risks they face.
Identify risks from auditor perspective
Finalise the scope of the audit
Hold a risk workshop to identify all risks (auditors' and
management's) and score them
Carry out audit tests to check the operation of the controls managing
risks
Discuss the audit findings with the staff involved.
Write the draft report
Discuss the draft report
Issue the final report
Carry out follow up work, if necessary, to ensure that action is taken
where agreed.
(staff = people (including managers) employed by the company either
directly (as employees) or indirectly (as contractors))
This spreadsheet
Mindmap
Audit details
Audit
programme
Column key
Flow chart
Audit history
Functions
Scoring risks
Timing
Recipients
Process(es)
Fixed assets
IT
Security
L1obj
L1 Objectives
L1risk
L1 Risks
L2obj
No
L1obj
L1 Objectives
L1risk
L1 Risks
L2obj
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
10
11
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Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
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Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
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Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
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64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
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Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Page 14
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
98
99
100
101
102
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103
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
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122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
141
142
143
144
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145
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
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165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
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Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Maintain profit of
existing business
Page 19
9-Oct-13
L2 Objectives
L2risk
L2 Risks
L3obj
L2 Objectives
L2risk
L2 Risks
L3obj
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Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
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Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect balances
Incorrect output
Incorrect output
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Incorrect output
Incorrect output
Incorrect output
Incorrect output
Incorrect output
Incorrect output
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L3 Objectives
L3risk
L3 Objectives
L3risk
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L3 Risks
Objective type
(COSO)
L3 Risks
Operations
Operations
Operations
Operations
Operations
Compliance,
Reporting
Compliance,
Reporting
Compliance,
Reporting
Compliance,
Reporting
Compliance
Compliance
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Compliance
Compliance
Compliance
Compliance
Compliance
Compliance
Compliance
Compliance
Operations
Operations
Operations
Operations
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
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Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Assets exist but are recorded on the register under the Operations
wrong location
Assets exist but are recorded on the register under the Operations
wrong location
Data is input at the wrong time
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
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Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations. Reporting.
Compliance
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
Operations
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Operations
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Consequence of risk
Risk
source
IRC
IRL
IRS
Consequence of risk
Risk source
IRC
IRL
IRS
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
20
20
20
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Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
20
20
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
Risk applies to
all objective
hierarchies
20
20
20
20
20
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Risk applies to
all objective
hierarchies
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
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Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
20
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
0
0
0
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
0
0
0
0
0
0
0
0
0
0
0
Page 55
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
0
0
0
0
0
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page 57
1/10/2015 at 1:09 AM
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
0
0
0
0
0
0
0
Page 58
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Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Fixed assets
department
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
Applies to all
objectives
0
0
0
0
0
0
0
0
0
0
0
Page 59
Internal control
Function
Internal
control owner
Internal control
Function
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Financial
Accounting
Financial
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Tax
Corporation Tax
Manager
Financial
Accounting
1/10/2015 at 1:09 AM
Financial
Accounting
Manager
Corporation Tax and
VAT Tax Managers
Page 60
Fixed asset
accounting
Financial
Accounting
Financial
Accounting
Fixed Asset
Accounting
Manager
Financial
Accounting
Manager
Financial
Accounting
Manager
Financial
Accounting
Manager
Corporation Tax
Manager
Corporation Tax and
VAT Tax Managers
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed Asset
Accounting
Manager
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
A print of asset details & values input is obtained and Fixed asset
checked
accounting
Additions reconciled back to additions per accounting Fixed asset
system
accounting
Lists of assets by business location or accountability Fixed asset
are periodically circulated to verify existence
accounting
Lists of assets by business location or accountability Fixed asset
are periodically circulated to verify existence
accounting
Detailed asset descriptions are recorded on the
register and includes unique asset reference number,
asset location, date of acquisition
Assets are individually tagged and descriptions
verified
Fixed asset
accounting
Fixed asset
accounting
Lists of assets by business location or accountability Fixed asset
are periodically circulated to verify existence
accounting
Lists of assets by business location or accountability Fixed asset
are periodically circulated to verify existence
accounting
Quantity of assets is included in the detailed
description
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Edit checks to detect data input into wrong period or Fixed asset
with incorrect dates
accounting
Exception reports to highlight data posted in wrong
period
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Division of duties
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
When asset is entered into fixed asset system, check Fixed asset
classification is correct
accounting
Check set up data
Fixed asset
accounting
Exception reports to highlight depreciation outside
Fixed asset
expected values
accounting
Exception report lists assets not depreciating
Fixed asset
accounting
Reliant on computer programs to be correct
Fixed asset
accounting
Check total depreciation equals difference in
Fixed asset
cumulative
accounting
All data which affects the system balance to be input Fixed asset
via the system
accounting
Month end check of balances formally noted on a
Fixed asset
checklist
accounting
Daily checklists (or as appropriate) to ensure data is Fixed asset
transferred
accounting
The reconciliation between the FA register and GL is Fixed asset
prepared and/or approved by an individual
accounting
independent of the upkeep / maintenance of the
asset register.
The use of fixed asset suspense accounts is
avoided. When used they are regularly reviewed
and cleared.
Month end checklist to ensure all transactions
transferred from subsidiary ledgers to the GL
Only complete transactions to be posted (e.g.
invoices, fixed assets)
No adjustments (such as journals) should be made
without a clear audit trail to supporting documents
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Page 65
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Changes to the cost of the asset are reflected in
Fixed asset
subsequent depreciation charges taking into account accounting
remaining estimated economic life of the asset.
Asset register is regularly reviewed for negative net
book values which are then investigated and
resolved.
Periodic physical verification of fixed assets at least
once every two years which includes verification of
continuing economic use, current value and
predicted economic useful life
Verification of assets held in storage and spares
locations
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Exception report of assets held at nil net book value Fixed asset
accounting
Exception report of assets held for an excessive time Fixed asset
accounting
Periodic physical verification of fixed assets at least Fixed asset
once every two years which includes verification of
accounting
continuing economic use, current value and
predicted economic useful life
Regular checks to confirm no loss (e.g. cash counts, Fixed asset
stock takes)
accounting
User testing of reports to ensure they achieve their
objectives
Fixed asset
accounting
The decisions to be made on receiving the report are Fixed asset
defined
accounting
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Fixed asset
accounting
Exception reports to highlight data outside expected Fixed asset
values
accounting
User testing of reports to ensure they achieve their
Fixed asset
objectives
accounting
Exception reports to highlight data outside expected Fixed asset
period
accounting
User testing of reports to ensure they achieve their
Fixed asset
objectives
accounting
Exception reports to highlight data outside expected Fixed asset
values
accounting
Password restricts access to system
Fixed asset
accounting
IT controls prevent direct access to files
Fixed asset
accounting
IT system logs access to files
Fixed asset
accounting
IT apply latest virus databases immediately on
Fixed asset
receipt
accounting
Database files are backed up daily
IT department
IT checks warn if databases become corrupted
IT department
IT department
IT department
IT department
IT department
IT department
Asset holding
department
Asset holding
department
Security
Department
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Department
Insurance
Department
Insurance
Department
Page 67
Asset holding
department
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Asset holding
department
Asset holding
department
Asset holding
department
Storage locations protect assets from damage
Asset holding
department
Where appropriate, assets are always used on a 'first Asset holding
in, first out' principle
department
Time limited assets are regularly inspected for
Asset holding
damage
department
Stocks of time limited assets are maintained at such Asset holding
a level so as to use them before the expiry dates
department
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Appropriate amount of depreciation accumulated to Fixed asset
date of disposal
accounting
Register is regularly reviewed for redundant assets Fixed asset
accounting
Redundant assets are identified as part of the regular Fixed asset
physical verification of fixed assets exercise
accounting
All assets are uniquely tagged.
Fixed asset
accounting
Unique tag inspected on a regular basis
Fixed asset
accounting
Useful economic life of possible redundant assets
Fixed asset
critically reviewed.
accounting
All relevant individuals are notified of possible
Fixed asset
redundant assets in order that the most appropriate accounting
and value adding course of action can be taken
Alternative use is actively considered before an asset Fixed asset
is classed as redundant
accounting
Stocks of redundant assets, which should be kept to
an absolute minimum, are regularly reviewed for any
economic use
IT function is responsible for software, hardware and
communications are maintained properly
IT function is responsible for security of data
IT function is responsible for repairing software,
hardware and communications to maintain
operations
Accounts Payable function is responsible for
ensuring data is correct
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
IT function is responsible for ensuring software is
Fixed asset
properly updated
accounting
Senior managers' responsibility to ensure sufficient Fixed asset
numbers of staff are available to properly support the accounting
business operations
HR have a succession plan in place for key staff
Senior managers' responsibility to ensure all staff
have sufficient training and knowledge to properly
discharge their responsibilities
1/10/2015 at 1:09 AM
Fixed asset
accounting
Fixed asset
accounting
Page 69
Monitoring
control
Monitoring
control owner
RRC
RRL
RRS
CS
Monitoring control
RRC
RRL
RRS
CS
Head of Accounting
Services
16
Finance Director
16
Head of Accounting
Services
16
Head of Accounting
Services
16
None
N/A
16
Fixed Asset
Department will check
as part of carrying out
their responsibilities
None
Fixed Asset
Department
16
N/A
16
None
N/A
16
None
N/A
16
Head of Financial
Accounts checks
manual is updated
None
Head of Financial
Accounts
16
N/A
16
1/10/2015 at 1:09 AM
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None
N/A
16
Fixed Asset
Department will check
as part of carrying out
their responsibilities
Head of Financial
Accounts checks
manual is updated
Fixed Asset
Department
16
Head of Financial
Accounts
16
16
16
16
16
16
16
16
16
16
16
16
16
1/10/2015 at 1:09 AM
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1/10/2015 at 1:09 AM
16
16
16
16
16
16
16
16
16
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Page 79
Process
Process
Fixed asset
accounting
Examine the written strategy. Is up-todate? Does it cover all topics such as IT
developments and staffing? Does it have
realistic financial figures?
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
Test
Last result
schedule ref.
Test ref
Last result
Last Audit
Opinion
Year
LA opinion
LA year
Page 80
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
1/10/2015 at 1:09 AM
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Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
Fixed asset
accounting
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Gap
Factor
Sig
arc
arl
ars
1/10/2015 at 1:09 AM
Current
opinion on
risk
Current
opinion on
risk
Page 90
L1 Objectives
L1risk
L1 Risks
L2obj
L2 Objectives
L2risk
L2 Risks
L3obj
L3 Objectives
L3risk
L3 Risks
Objective type (COSO)
Consequence of risk
Risk source
IRC
IRL
IRS
Internal control
Function
Internal control owner
Monitoring control
Monitoring control owner
RRC
RRL
RRS
CS
Process
Example test
Test schedule ref.
Last result
Last audit opinion
Last audit date
Gap
Adj factor
Adj IRS
Audit Group
Last audit
Current/Next audit
udit Programme
Line number. Needs resetting after each change. Used to sort spreadsheet.
Level 1 objective number
Level 1 objective
Level 1 risk number
Risk threatening top level objective
Level 2 objective number
Level 2 objective which aims to control the level 1 risk to which it is attached
Level 2 risk number
Risk threatening level 2 objective
Level 3 objective number
Level 3 objective which aims to control the level 2 risk to which it is attached
Level 3 risk number
Risk threatening level 3 objective
Operations, reporting or compliance
The effect when the risk occurs. Should ideally be quantified in cost terms.
Who identified the risk (management, risk workshop, auditor, meeting)
Inherent risk consequence score
Inherent risk likelihood score
Inherent risk scores multiplied. (Inherent Risk Significance score )
The control managing the risk
The function affected by the risk (may be the divsion/operating unit/function)
The job title of the person responsible for operating the control
The control which checks that the internal control is operating - may not always be
such a control
The person responsible for operating the monitoring control
Residual risk consequence score.
Residual risk likelihood score
Residual risk scores multiplied
Control score (=IRS-RRS). Gives a measure of the importance of the control
The process in which the internal control operates. See separate mind map of
processes.
Example of a test which might be used to confirm the control is operating
Reference number of the document detailing the test, or a link to it
Conclusion of last audit (acceptable/issues/unacceptable)
Conclusion of last audit (acceptable/issues/unacceptable)
Year of the last audit
Year of planned audit
Factor applied to the IRS depending on how many years ago the last audit took
place, and the result. ( See www.internalaudit.biz)
IRS X adj factor = adj IRS. Sorting on this score gives the priority order for the
associated audits
Letter(s) given in order to group several risks into one audit (if necessary). They
will not necessarily be in order, as new risks, with associated audits, will be added
and some may be removed
Unique number given to each audit. This is the number of the last audit to cover
this risk
Name given to the audit
Approximate number of auditor-days the audit should take. This aids resource
planning
Number of days the last audit actually required
Months/year of last audit
Names of principal auditors
Target date for producing report (from scope)
Date actually achieved for issuing final report
Unique number given to each audit. This is the number of the next audit to cover
this risk - if it has been allocated
Audit name. Will usually be the same as for the last audit, but could be different if
this risk has been included in another audit
Approximate number of auditor-days the audit should take - based on last audit's
actual time. This aids resource planning
Expected quarter/year of next audit - if it can be allocated
Name|(s) of auditors - if allocated
Status of audit (Planning/fieldwork/reporting) when it is in progress
Target date for producing report (from scope)
Actual date the final report was issued
The opinion as to whether the risk was being properly managed
(When the final report from "next audit", its details are moved into the "last audit"
columns
Purchase
ordering
Purchase
ordering
databases
Standing
data
Transaction
data
Reports
Set up
data
Fixed asset
system
Fixed asset
databases
Standing
data
Transaction
data
Reports
Set up
data
General
ledger
database
General
Ledger
system
Standing
data
Transaction
data
Reports
This flowchart only shows the main elements of the fixed asset process
and surrounding processes. Although it applies to computer systems, it
is applicable to manual systems, since both have the common elements
of data , processes and databases.
Flowcharts should be drawn up, as part of the walkthrough tests, in
order to understand the risk involved in the input, manipulation, storage
and output of data. Typical controls will include those to ensure the
accuracy, completeness and timeliness of input and output data and
data passing between computer systems.
Asset categories
Depreciation rates
Accounting calendar
Asset details
Locations
Audit number
Complete
2013
Budget
Draft scope written
First meeting with staff
Start of walk through tests
Scope finalised and issued
Risk workshop held
Audit tests started
Discussion of findings with management
Draft report issued
Draft report discussed
Final report issued
Report issued on first followup audit
Report issued on second followup audit (if required)
Report issued on third followup audit (if required)
Actual
06 March 2013
03 March 2013
14 March 2013
14 March 2013
18 March 2013
18 March 2013
28 March 2013
28 March 2013
03 April 2013
03 April 2013
08 April 2013
08 April 2013
29 April 2013
29 April 2013
06 May 2013
06 May 2013
10 May 2013
10 May 2013
14 March 2013
17 March 2013
19 July 2013
19 July 2013
16 September 2013 16 September 2013
Manager in charge
Auditor in charge
Auditors
Helen Smith
Fred Makle
Jim Brown
Trish Frederick
250
Unacceptable
Issues
Acceptable
265
To start
2016
Budget
Actual
265
Finance
Director
Secretary
Head of
Financial
Accounts
General
Ledger
Manger
Head of
Management
Accounts
Financial
Accounting
Manager
Fixed Assets
Manager
Fixed Assets
Department
Head of
Accounting
Services
Payroll
Manager
Bank
Accounts
Manager
Finance
Director
Head of
Accounting
Services
Bank
Accounts
Manager
Head of Tax
Accounts
Payable
Manager
Accounts
Receivable
Manager
Credit Control
Manager
VAT Manager
Corporation
Tax Manager
oration
anager
Almost certain
4
Acceptable
Supplementary
Issue
15
20
Unacceptable
12
Issue
Unacceptable
Unacceptab
Possible (3)
10
Issue
3
Acceptable
Supplementary
Issue
9
Issue
12
Issue
Unacceptab
Unlikely (2)
5
Supplementary
Issue
Rare
Unacceptable
2
Acceptable
4
Acceptable
Supplementary
Issue
Supplementary
Issue
1
Acceptable
2
Acceptable
3
Acceptable
4
Acceptable
Rare(1)
16
25
Unacceptab
20
15
10
Issue
Supplementa
Issue
Possible (3)
9
Issue
Unlikely (2)
Likelihood of res
Supplementary
Issue
2
Acceptable
4
Acceptable
Supplementary
Issue
Supplementary
Issue
1
Acceptable
2
Acceptable
3
Acceptable
4
Acceptable
Insignificant (1)
Minor (2)
Moderate (3)
Rare(1)
3
Acceptable
12
Issue
Major (4)
15
Unacceptab
10
Issue
Supplementa
Issue
Catastrophic
Catatrophic (5)
Major (4)
Moderate (3)
Minor (2)
Insignificant (1)
15
nacceptable
20
25
Unacceptable
Unacceptable
12
Issue
16
20
Unacceptable
Unacceptable
9
Issue
12
Issue
Unacceptable
15
pplementary
Issue
Supplementary
Issue
10
Issue
3
cceptable
4
Acceptable
Supplementary
Issue
9
Issue
12
Issue
15
Unacceptable
pplementary
Issue
Supplementary
Issue
10
Issue
3
cceptable
4
Acceptable
Supplementary
Issue
oderate (3)
Major (4)
Catastrophic (5)
e of residual risk
X Consequence score
able if it is cost-effective