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