Thank You to our Sponsors. Checks & Balances Internal Controls to Achieve a Successful Audit.

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Presentation transcript:

Thank You to our Sponsors

Checks & Balances Internal Controls to Achieve a Successful Audit

Once Upon a Time…  Approximately $96,000  18 months  Mid 30s female  YMCA finance director and accountant

What are Internal Controls? …a process effected by an organization's structure, work and authority flow, and people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization's resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization's resources Internal Control

What are Internal Controls? Separation of Duties: Checks & Balances Permissions

What are Internal Controls? Role Based Access Control Using Technology: DAXKO Operations DAXKO Accounting

Internal Controls Process Establish Environment Assess Risks Control Activities Monitor Performance

Establish Environment Assess Risks Control Activities Monitor Performance Establish Environment

A Receptive Environment Requires a Top Down Approach

Establish Environment Define Roles Assign Responsibilities Communicate Clearly

Establish Environment

Assess Risks Control Activities Monitor Performance Assess Risks

Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

Establish Environment Assess Risks Control Activities Monitor Performance Control Activities

Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

Control Activities Prevention of Theft Allocate new apply one time adjustment permission Separate duties for shift close-outs and deposits Separate duties for invoice entry and posting Separate duties for check printing and signing Activities to Implement

Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

Control Activities Prevention of Mistakes Assign account permissions to increase simplicity Separate duties for entry and posting of journal entries Use importing feature to import entries Activities to Implement

Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

Control Activities Prevention of Data Compromise Restrict users to applicable branches or departments Restrict users to necessary major codes Activities to Implement

Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

Control Activities Prevention of Misrepresentation Budget for Revenue before Expense Establish levels of review Encourage use of comments Lock down budget after board approval Activities to Implement

Establish Environment Assess Risks Control Activities Monitor Performance

Use the Event Log in DAXKO Operations and DAXKO Accounting to monitor performance

Accounts Payable General Ledger Budget Monitor Performance DAXKO Accounting

Review Establish Environment Assess Risks Control Activities Monitor Performance

Action Items Determine your Vulnerabilities Set Goals to Improve Internal Controls Utilize Roles and Permissions Establish Policies for Monitoring the Event Log Evaluate Processes on a Regular Basis