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Internal Controls The internal control templates are included in the Accounting and Management Template Library or licensed separately. This module includes an 8 page Internal Control Policy and approximately 700 controls covering Assets, A/P, A/R, Cash, Checks, Financial Reporting, Job Costing, Marketing/Customers, Data Integrity, Payroll and HR, Project Management, Purchasing, Receiving and Warehousing, Safety, Sales and Estimating, Retail, the Control Environment, Control Activities, Risk Assessment, Information and Communications, and Control Monitoring. The controls are delivered in both text and spreadsheet formats so you can develop and print internal control questionnaires and use the spreadsheet to evaluate compliance with your internal control system. The internal controls are structured to help entities comply with SOX and other government audits. Use the Copedia Internal Control Assessment Tool and the Copedia Quarterly Internal Control Reports to demonstrate compliance. Following are two examples from the internal controls module. First, a screen shot from the Internal Control Assessment Spreadsheet and second, an example of Asset controls in text format:
Internal Control of Assets Division of Duties The person responsible for recording fixed assets does not make general ledger entries The reconciliation of the Fixed Asset detail accounts with the fixed asset control accounts and making entries into the fixed asset software are separate The custodian of the fixed assets and the taking of physical inventory are separate The person responsible for tagging fixed assets is not the fixed asset custodian The person responsible for locating missing fixed assets is not the fixed asset custodian Capital asset purchases require authorization Asset disposals require authorization General Asset Controls There are written procedures for purchasing, receiving, recording assets, and inventory management Asset records properly classify and identify the assets Assets are tagged when received Physical asset inventories are actually performed Physical inventories of assets are performed when transition of employee asset custodians occurs Missing assets are logged in a missing asset log Documentation is prepared when assets are received, sold, moved, transferred, damaged, or disposed of Asset reconciliations are actually performed Asset additions are properly valued Asset capitalization includes costs required to place the asset in service including (direct costs, preparation costs, fees, damages, interest, etc.) Assets gains and losses are properly recorded Assets are adequately insured
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