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NCJ Number: 66752 Find in a Library
Title: EVALUATING INTERNAL CONTROL - CONCEPTS, GUIDELINES, PROCEDURES, DOCUMENTATION
Author(s): K P JOHNSON; H R JAENICKE
Corporate Author: John Wiley and Sons
Managing Editor
United States of America
Date Published: 1980
Page Count: 659
Sponsoring Agency: John Wiley and Sons
New York, NY 10158
John Wiley and Sons, Inc.
Hoboken, NJ 07030-5774
Sale Source: John Wiley and Sons, Inc.
111 River Street
Hoboken, NJ 07030-5774
United States of America
Language: English
Country: United States of America
Annotation: THIS VOLUME COVERS BOTH THE CONCEPTUAL ASPECTS OF INTERNAL CONTROL TO REDUCE ORGANIZATIONS' EXPOSURE TO ACCOUNTING AND FINANCIAL LOSSES AND AN APPROACH TO CONDUCTING A REVIEW OF EXISTING CONTROL SYSTEMS.
Abstract: DESIGNED FOR MANAGEMENT PERSONNEL, AND INTERNAL AND INDEPENDENT AUDITORS, THE BOOK IS INTENDED TO ENABLE AN ORGANIZATION TO CREATE ITS OWN INTERNAL CONTROLS REVIEW AND EVALUATION PROGRAM. INTERNAL CONTROLS ARE OF TWO KINDS--ACCOUNTING AND ADMINISTRATIVE, THE FIRST DESIGNED TO BRING ABOUT ACCURATE AND SUITABLE RECORDING AND SUMMARIZATION OF AUTHORIZED FINANCIAL TRANSACTIONS AS A FRAUD DETECTION AND PREVENTION MEASURE AND THE SECOND DEVELOPED TO PROMOTE OPERATIONAL EFFICIENCY AND ENCOURAGE ADHERENCE TO MANAGEMENT POLICY. INTERNAL CONTROL IN A FINANCIAL AND ACCOUNTING RISK ENVIRONMENT IS EXAMINED, WITH DISCUSSION FOCUSING ON MANAGEMENT'S RESPONSIBILITY FOR INTERNAL ACCOUNTING CONTROL UNDER THE FOREIGN CORRUPT PRACTICES ACT, THE REDUCTION OF RISKS THROUGH CONTROLS, AND DEFINITIONS AND OBJECTIVES OF INTERNAL CONTROL. CONTROL TASKS ARE ALSO DISCUSSED, PARTICULARLY IN A COMPUTER ENVIRONMENT. A CONDITIONS OF CONTROL QUESTIONNAIRE IS INCLUDED. A FRAMEWORK FOR EVALUATING INTERNAL CONTROL IS PRESENTED, WITH PROVISIONS FOR RANKING CONTROL WEAKNESSES, PRELIMINARY EVALUATION OF THE SIGNIFICANCE OF POTENTIAL CONTROL WEAKNESSES, LIMITATIONS OF INTERNAL CONTROL EVALUATIONS, AND POLICIES AND PROCEDURES FOR ORGANIZING AND IMPLEMENTING AN INTERNAL CONTROL EVALUATION. THE PRELIMINARY PHASE FOR EVALUATING THE SYSTEM, INVOLVING UNDERSTANDING THE SYSTEM, RECORDING (FLOWCHARTING) THE SYSTEM, AND CONFIRMING THE UNDERSTANDING THROUGH TRANSACTION REVIEW IS DETAILED. A DESCRIPTION OF THE QUESTIONNAIRE AND TESTING PHASE OF THE EVALUATION FOLLOWS, WITH PROVISIONS FOR FORMATING THE INTERNAL CONTROL QUESTIONNAIRE, APPLYING FUNCTIONAL TESTS AND OPERATIONAL REVIEWS, AND SELECTING ITEMS TO BE TESTED OR REVIEWED. INTERNAL CONTROLS IN THE PAYMENTS CYCLE ARE EVALUATED, AND CONTROL OBJECTIVES OF THE TIME CYCLE ARE DISCUSSED. THE INTERNAL CONTROL QUESTIONNAIRE AND ACCOMPANYING REFERENCE MANUAL (EXPLAINING THE QUESTIONS AND DESCRIBING THE EFFECTS OF ACCOUNTING CONTROL WEAKNESSES) ARE APPENDED. ALSO PROVIDED ARE FLOWCHART WORKSHEET FORMS, INSTRUCTIONS FOR DOCUMENTING FUNCTIONAL TESTS AND OPERATIONAL REVIEWS, AND SECURITIES AND EXCHANGE COMMISSION RELEASES. FOOTNOTES AND AN INDEX ARE INCLUDED. (WJR)
Index Term(s): Financial management; Trade practices
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http://www.ncjrs.gov/App/publications/abstract.aspx?ID=66752

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