10-32 (Components of internal control) Internal controls can be classified using the subsequent framework.
1 ) Control environment
2 . Risk assessment
a few. Information and communication
some. Control activities
4. 1 ) Authorization
4. 2 . Segregation of obligations
4. 3. Information processing controls
four. 3. 1 ) Computer standard controls
some. 3. 2 . Computer app controls
4. 3. three or more. Controls over the financial reporting process
four. 4. Physical controls
four. 5. Efficiency reviews
some. 6. Controls over management discretion in financial reporting your five. Monitoring
six. Antifraud programs and handles
Following can be described as list of handles prescribed by Waterfront, Inc.
a. Managing has established a code of conduct which includes rules concerning conflicts of interest for purchasing providers.
b. Waterfront has established a disclosure panel to review selecting new accounting policies.
c. Any pc program revision must be approved by user departments after screening the entire program with check data.
d. The managers of each of Waterfront's making departments need to review most expenditures billed to their responsibility center regular.
e. The CEO, CFO, and control mechanism review the financial effects of business risks each year to ensure that controls are in place to address significant business risks.
f. Human resources focuses on making sure accounting personnel have enough qualifications to get work performed in invoicing and accounts receivable.
g. Security software limits access to programs and data files, and keeps a record of programs and data files that have been accessed, which is in that case reviewed by security director daily.
l. A computer program prints a regular report of most shipments which have not yet been invoiced to buyers. I. The controller evaluations sales and collections bimonthly.
j. The pc compares the knowledge on the sales invoice with underlying shipping and delivery information.
e. Customer invoicing complaints will be directed to...