How can I practically practice the identification of control weaknesses for all business cycles(i.e Payroll,cash & etc)? Is there any practical process descriptions you can recommend for me to practice on?
That’s a good question, but I don’t know of a way to practice control weakness identification. Probably the best tip is to think about “what can go wrong?” In a cycle. Then ask what control would reduce that possibility. Next, look at your client’s controls to see if they address this possibility. For example, in cash receipts, one thing that can go wrong is the theft of incoming cash. And what controls would reduce that possibility? Creating receipts as monies are collected, video cameras that record the actions of those collecting cash, reconciling daily cash receipts to the amounts collected, a review of the reconciliation by a supervisor. Then, see if your client has these controls.
Very Helpful! Thank you
How can I practically practice the identification of control weaknesses for all business cycles(i.e Payroll,cash & etc)? Is there any practical process descriptions you can recommend for me to practice on?
That’s a good question, but I don’t know of a way to practice control weakness identification. Probably the best tip is to think about “what can go wrong?” In a cycle. Then ask what control would reduce that possibility. Next, look at your client’s controls to see if they address this possibility. For example, in cash receipts, one thing that can go wrong is the theft of incoming cash. And what controls would reduce that possibility? Creating receipts as monies are collected, video cameras that record the actions of those collecting cash, reconciling daily cash receipts to the amounts collected, a review of the reconciliation by a supervisor. Then, see if your client has these controls.
Where can I buy the copy of your book?
You will see it on Amazon. Thanks.
Where can I buy a copy of your book?
You see it on Amazon. Just key in the name of the book in the search field on their site.