Accounting-control-best-practices PDF Book
This book addresses one of the primary concerns in accounting today— how to develop a comprehensive system of accounting and operational controls. This concern has been exacerbated by the provisions of the Sarbanes-Oxley Act, which requires public companies to report an assessment of their internal control structures, and which has led to comprehensive control examinations by all types of companies. This second edition of Accounting Controls Best Practices describes a complete set of controls for a paper-based accounting process as well as for a computerized system, and then describes controls for more advanced best practices that are layered onto the basic computerized system. The second edition includes new chapters describing control systems for budgeting, collections, and financial reporting. By reviewing the nearly 500 controls for the various systems presented here, the accountant or systems analyst can devise a set of controls that is precisely tailored to the needs of his or her system. Accounting Controls Best Practices encompasses all of the major accounting and operational processes, including the following: Billing Just-in-time manufacturing Budgeting Manufacturing resources planning Cash receipts Order entry Collections Payroll Credit management Perpetual inventory record keeping Evaluated receipts Petty cash Financial reporting Procurement cards Fixed assets transactions Purchasing Inventory transactions and Shipping valuation Investments In addition, each chapter includes control flowcharts for all major processes. Further, to ensure that only enough controls are applied to not fpref.qxd 1/12/10 2:08 PM Page v excessively reduce process efficiency, they are divided into primary and ancillary controls. This in-depth treatment makes Accounting Control Best Practices the guidebook needed to ensure that a company has constructed a durable and efficient set of controls. This book is intended to be a reference handbook for accountants and systems analysts who design, monitor, and revise accounting systems, as well as for the internal and external auditors who review those systems for control weaknesses. It is also useful for accounting managers who must be aware of the control issues associated with any best practices they wish to install in their accounting systems. STEVEN M. BRAGG Centennial, Colorado November 2008
