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Extra resources for Accounting - What is Cost Accounting

Sample text

1 ◾ 11 Mapping Controls to the 2013 COSO Framework (a) Control Environment Control ID CE1 CE2 Primary Assertion Secondary Assertion P1 Ethical3 NA NA NA NA X X POF1 POF2 POF3 … P2 … X x X (b) Sales Cycle (P12) Control ID S1 S2 Primary Assertion Secondary Assertion 1 3 3 Sales POF1 POF2 X X POF3 POF4 … X X entities and industries. The important thing is that all currently identified key controls are mapped and that all principles and points of focus are arrayed so that potential gaps can be identified.

The management and systems and policies were markedly different from other parts of the country). In those situations, management will want to consider the controls related to those location- or business unit–specific risks. 3. Low-risk locations or business units. Some of the controls that operate at an individual location or business unit may be related to risks that are relatively low, based on experience and prior testing. In addition, the relative size of some locations in terms of assets, liabilities, and contribution of profit may be very small and the locations pose no specific risks such as are sometimes identified when they are engaged in specific risk activities, such as currency trading or investing in derivative financial instruments.

Record keepers maintain the financial accounting records of the investment company based on information provided by the transfer agent and the custodian of the investment company’s investments. Other SOs include: ◾ Insurers that maintain the accounting for ceded reinsurance. ◾ Mortgage servicers or depository institutions that service loans for others. ◾ Value-added networks. ◾ Third-party entities that act as a conduit for collecting amounts to be remitted in whole or in part to the company. When an entity uses a SO to process transactions, the controls over that processing reside outside the entity, at the SO.

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Accounting - What is Cost Accounting

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