Beruflich Dokumente
Kultur Dokumente
B U S I N E S S S E RV I C E S
!@#
Evaluating Internal
Controls
Considerations for Documenting Controls at
the Process, Transaction, or Application Level
a3
TO O U R C L I E N T S
AND
Control Environment
Risk Assessment
Control Activities
Monitoring
OT H E R F R I E N D S
E VA L UAT I N G I N T E R NA L C O N T RO L S
Contents
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A Word About Materiality. . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Appendix A Example Significant Accounts and
Processes for Selected Industries . . . . . . . . . . . . . . . . 27
Appendix B Example Risk and Control
Documentation for Cash Disbursements Process. . . 34
Appendix C Common IT General Controls . . . . . . . . . . . 36
IT Program Acquisition, Implementation and
Maintenance Controls. . . . . . . . . . . . . . . . . . . . . . . . . . . 36
IT Access Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
O V E RV I E W
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
Overview
of internal control.
O V E RV I E W
E VA L UAT I N G I N T E R NA L C O N T RO L S
I D E N T I F Y S I G N I F I C A N T AC C O U N T S
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
I D E N T I F Y S I G N I F I C A N T AC C O U N T S
Corporate
E VA L UAT I N G I N T E R NA L C O N T RO L S
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
10
E VA L UAT I N G I N T E R NA L C O N T RO L S
Example Processes
Transaction
Types
Non-Routine
Routine
Routine
Routine
Routine
Routine
Routine
Non-Routine
Non-Routine
Non-Routine
Estimation
Non-Routine
Non-Routine
Estimation
Estimation
Estimation
Estimation
Estimation
Estimation
Non-Routine
Non-Routine
Non-Routine
d Rela
E
tivity
quity a
Payroll
ted Ex
nd Sto
Expen
p
e
c
n
k
s
se and
e
Comp
ensatio
Relate
d Accr
n Expe
ued Lia
nse
bilities
11
12
E VA L UAT I N G I N T E R NA L C O N T RO L S
13
A S K W H AT C A N G O W RO N G Q U E S T I O N S
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
14
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
Existence
Valuation or Measurement
Completeness
Explanation
15
A S K W H AT C A N G O W RO N G Q U E S T I O N S
Assertion
Completeness
Completeness
Occurrence
Existence/Occurrence
16
Valuation/Measurement
E VA L UAT I N G I N T E R NA L C O N T RO L S
17
I D E N T I F Y C O N T RO L S
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
18
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
Identify Controls
Description
Procedures designed to prevent an error or
fraud. Prevent controls are normally applied
at a single transaction level.
Detect Controls
19
I D E N T I F Y C O N T RO L S
20
E VA L UAT I N G I N T E R NA L C O N T RO L S
21
I D E N T I F Y C O N T RO L S
E VA L UAT I N G I N T E R NA L C O N T RO L S
23
NEXT STEPS
Financial
Statements
Process Implications
Financial Implications
Balance
Sheet
Management
Assertions
Existence or Occurrence
Completeness
Valuation or Measurement
Rights and Obligations
Presentation and Disclosure
Significant
Accounts
Significant
Processes
What Can
Go Wrong?
Errors of importance*
Size and composition
Susceptibility to loss or fraud
High transaction volume
Transaction complexity
Subjectivity in determining account balance
Nature of the account
1 Flows of transactions
Routine
Non-Routine
Estimation
1 IT processes
1 Financial Statement Close Process
Accounts:
Cash or Payables
Process:
Disbursements
Assertion: Valuation
What are the manual and programmed procedures to ensure that
the amount of a check or transfer agrees with the amount
approved for payment?
Next Steps
24
Controls
Evaluate/
Monitor
Report
Management
Report on
Internal
Control
E VA L UAT I N G I N T E R NA L C O N T RO L S
Next Steps
In the final phase, the project team will determine that the
controls identified are functioning as designed. Additional
information about evaluating the overall effectiveness of
internal control, including procedures for determining that
controls are functioning as designed, identifying matters for
improvement, and evaluating processes to monitor the system
of internal control, will be provided in a future publication.
25
26
E VA L UAT I N G I N T E R NA L C O N T RO L S
Transaction
Types
Non-Routine
Routine
Routine
Routine
Routine
Routine
Routine
Non-Routine
Estimation/Routine
Estimation/Routine
Routine
Estimation/Routine
Estimation
Estimation
Non-Routine
Estimation
Cash a
nd Cas
h Equiv
Invest
alents
ment a
nd Rela
Deferr
t
ed Inc
ed Poli
ome, G
cy Acq
ains a
Reinsu
uisitio
nd Los
rance
n Cost
s
and Am ses
Separ
ortizat
ate Ac
ion
count
Benef
it/Claim Assets/Liab
ilities
Reserv
Unear
es and
ned Pr
Relate
emium
d Expe
Incom
Reserv
nses
e Taxe
e
s (Cur
Comm
rent, D
itment
eferre
d) and
s, Con
Premiu
tingen
Relate
ms an
cies a
d Inco
d Rela
nd Rela
me St
Fees a
t
e
ateme
ted Ex
d
Receiv
nd Co
nt Act
pense
a
m
b
le
m
ivity
s
ission
Opera
s
ting/U
nderw
riting/
Gener
al Exp
enses
Example Processes
27
Manufacturing
Example Processes
Transaction
Types
Non-Routine
Routine
Routine
Routine
Routine
Routine
Routine
Non-Routine
Non-Routine
Non-Routine
Estimation
Non-Routine
Non-Routine
Estimation
Estimation
Estimation
Estimation
Estimation
Estimation
Non-Routine
Non-Routine
Non-Routine
28
Cash a
nd Cas
h Equiv
Accou
alents
nts Re
c
eivable
Allowa
and Re
nce fo
lated In
r Doub
Invent
come
t
f
u
l Acco
ories a
Statem
unts a
nd Rela
ent Ac
n
d
Invent
Bad D
tivity
ted Inc
ory Re
e
b
o
t
m
E
s
e
x
e
p
S
r
e
v
t
n
a
e
s
temen
s and
Prepaid
e
t Activ
Relate
s, Othe
d Inco
ity
r Curre
Proper
m
e Stat
nt Ass
ty, Pla
ement
ets an
nt and
Activit
d Rela
Intang
E
q
y
u
ted Inc
ipmen
ible As
t
o
m
a
s
n
e
e
d
ts and
S
D
t
Accou
e
a
t
p
ement
reciatio
Relate
nts Pa
Activit
n Expe
d Amo
yable
y
nse
r
Incom
t
a
iz
n
a
d
t
io
Relate
e Taxe
n
d Inco
s (Cur
me St
Accrue
rent, D
ateme
eferre
d Liab
nt Act
d
il
)
it
a
ie
n
s
ivity
d Rela
Debt a
a
n
d
Relate
ted Inc
nd Rela
d
o
In
t
m
e
come
e Stat
d Inter
Pensio
Statem
ement
est Ex
n, OPE
pense
Activit
ent Ac
B
s
a
n
y
tivity
Comm
d Rela
itment
ted Inc
s
o
,
m
Contin
e Stat
Stockh
gencie
ement
olders
s and
Activit
E
q
R
u
elated
ity and
Payroll
y
E
Expen
S
x
p
t
o
e
ck Com
nse
se and
p
e
Relate
nsatio
d Accr
n Expe
ued Lia
nse
bilities
E VA L UAT I N G I N T E R NA L C O N T RO L S
Transaction
Types
Non-Routine
Routine
Routine
Routine
Estimation/Routine
Routine
Routine
Non-Routine
Non-Routine
Routine
Routine
Routine
Estimation
Estimation/Routine
Estimation
Estimation
Non-Routine
Estimation
Cash a
nd Cas
h Equiv
Invest
alents
ments
and Re
Premiu
la
ted Inc
m Rec
ome, G
eivable
ains a
Reinsu
s/Agen
nd Los
rance
t
s
Balanc
ses
B
a
la
n
Deferr
c
e
e
s
s
ed Poli
cy Acq
Loss A
uisitio
djustm
n Cost
e
s and
n
t
E
Incom
xpens
Amort
e Taxe
e Rese
ization
s (Cur
r
v
es and
Unear
r
e
n
t, Defe
R
e
ned Pr
la
te
rred) a
emium
nd Rela d Expense
Comm
Reserv
ted Inc
itment
e
s
ome S
s, Con
Premiu
tingen
tatem
m Inco
cies a
ent Ac
n
tivity
m
d
e
R
e
Fees a
lated E
nd Co
xpens
m
e
m
ission
Under
s
writing
a
n
d
Gener
Payroll
al Exp
Expen
enses
se and
and Re
Relate
lated L
d Accr
iabilitie
uals
s
Example Processes
29
Transaction
Types
Example Processes
Financial Statement Close
Cash Receipts
Cash Disbursements
Payroll
Purchase and Pay for Assets and Non-Interest Expense
Treasury/Investment Securities-Valuation and Income Recognition
Treasury/Investment Securities-Transaction Execution
OperationsDeposits, Withdrawals, Fee Income and Interest Expense
OperationsClearing and Settlement
Credit Origination, Transaction Processing and Income Recognition
OperationsElectronic Funds Transfers
Investments in Affiliates/Joint Ventures
Calculate Amortization
Assess Assets for Impairment
Calculate Income Taxes
Calculate Depreciation
Estimate Commitments and Contingencies
Estimate Pension and OPEB Liabilities and Expense
Estimate Allowance for Credit Losses
Manage Derivatives and Hedging
30
Non-Routine
Routine
Routine
Routine
Routine
Routine
Routine
Routine
Routine
Routine
Routine
Non-Routine
Non-Routine
Estimation
Non-Routine
Non-Routine
Estimation
Estimation
Estimation
Non-Routine
Cash a
nd Due
From B
Invest
anks
ment S
e
c
urities
Credit
and Re
Facilit
lated In
ies an
Allowa
d Rela
come
nce an
ted Int
Statem
d Rela
erest/
ent Ac
Other
t
Incom
e
tivity
d Prov
Asset
e
ision f
s and
or Cre
Depos
Relate
d
it
its, Fe
d Inco
Losses
e Inco
me St
Incom
me an
ateme
e Taxe
d
nt Act
Relate
s (Cur
ivity
d Expe
Other
rent, D
n
s
e
Liabilit
eferre
d) and
ies an
Borrow
d Rela
Relate
ings a
ted Inc
d Inco
n
d Rela
me St
ome S
Comm
ateme
t
t
e
a
d
t
e
Interes
itment
ment A
nt Act
s
t
c
,
ivity
E
tivity
C
x
onting
pense
Stockh
encies
olders
a
n
Equit
d Rela
Payroll
y
ted Ex
Expen
pense
se and
Relate
d Accr
ued Lia
bilities
E VA L UAT I N G I N T E R NA L C O N T RO L S
Transaction
Types
Cash a
n
Rec d Cash E
and Reeivables (T quivalents
lated enant,
Incom Escrow
e Stat s, Con
Allowa
ement tract,
n
Activit Retain
Prepa ce for Doub
age, U
y
and Reid Expens tful Acco
nbilled
unts a
lated es, De
Costs
nd Bad
Incom ferred
, Othe
Other
e
L
D
e
S
e
a
t
r)
bt Exp
ateme sing C
Invest
ense
nt Act osts a
ments
iv
n
d
(
it
In
y
Other
Invest
cludin
ment In
g Equit
Curren
y Inves
t Asse
and Ad
ts
t
m
Deferr
v
e
a
n
n
t
c
s) and
es to P
ed Ch
O
arges
a
t
h
r
t
e
nership
r Incom
and Re
Develo
s, JVs
e/Expe
lated A
pment
and Eq
nse
mortiz
Proper
uity in
ation
ties
Real E
E
a
r
n
ings
state
Invest
ments
Intang
a
nd De
ible As
precia
sets a
tion Ex
nd Rela
Accou
pense
nts Pa
ted Am
yable
o
r
t
ization
and Re
Incom
lated In
e Taxe
s (Cur
come
rent, D
Statem
Accrue
eferre
ent Ac
d Liab
d
) and
tivity
ilities
Relate
and Re
Mortg
d Inco
lated In
ages/N
m
e
otes P
Statem
come
ayable
Statem
Comm
ent Ac
and Re
itment
ent Ac
tivity
tivity
s, Con
lated In
tingen
Share
t
e
rest Ex
cies a
holder
pense
nd Rela
s Equ
ity
ted Ex
Payroll
p
e
n
Expen
se
se and
Gain/L
Relate
oss on
d Accr
ued Lia
Sale o
f Real
bilities
Estate
Example Processes
31
Retail
Transaction
Types
32
Estimation
Estimation
Non-Routine
Non-Routine
Non-Routine
Cash a
nd Cas
h Equiv
Accou
alents
nts Re
ceivab
Allowa
le
and Re
nce fo
lated In
r Doub
Vendo
come
t
f
ul Acc
r Supp
Statem
o
u
nts an
o
ent Ac
r
t
R
eceiva
d Bad
Invent
tivity
ories a
ble an
Debt E
d
n
x
pense
d
R
elated
Relate
Invent
d Inco
Incom
ory Re
me St
e Stat
serves
ateme
ement
Invent
a
n
d
nt Act
Activit
ory Sh
Relate
iv
y
d
it
r
in
y
E
k
xpens
Reserv
Prepaid
e
e
and Re
s, Othe
lated E
r Curre
Proper
xpens
nt Ass
ty, Pla
e
ets an
n
t
a
d Rela
nd Equ
Intang
ted Inc
ipmen
ibles,
t and
ome S
Other
Depre
tatem
Accou
Asset
ciation
ent Ac
s and
nts Pa
tivity
R
E
y
x
a
e
p
b
la
ense
le and
ted Am
Incom
Relate
o
e Taxe
r
tizatio
d Inco
s (Cur
n
me St
Accrue
rent, D
ateme
eferre
d Liab
n
d
t
il
)
it
Activit
and Re
ies an
Closed
y
d Rela
lated In
Store
t
e
c
d
ome S
Reserv
Incom
Self-In
t
e
a
e
temen
S
a
tatem
nd Rela
suranc
t Activ
ent Ac
ted Ex
e Rese
ity
t
Debt a
iv
p
it
r
ense
ve and
y
nd Rela
Relate
t
e
d
d
Comm
Interes
Expen
se
itment
t Expe
s, Con
nse
Stockh
tingen
olders
cies a
nd Rela
Equit
Payroll
y and
ted Ex
Expen
Stock
pense
se and
Comp
e
Relate
nsatio
d Accr
n Expe
ued Lia
nse
bilities
Example Processes
E VA L UAT I N G I N T E R NA L C O N T RO L S
Transaction
Types
Non-Routine
Routine
Routine
Routine
Routine
Routine
Routine
Routine
Non-Routine
Non-Routine
Cash a
nd Cas
h Equiv
Marke
alents
table
Secur
ities a
Sales
nd Rela
and Ac
counts
ted I/S
Allowa
R
Activit
e
ceivab
nce fo
y
le
r
D
oubtfu
Invent
l Acco
ories a
unts a
nd Cos
nd Bad
Invent
t of Sa
ory Re
Debt E
le
s
s
xpens
e
r
ves an
Prepaid
e
d
R
e
Expen
la
t
e
d
s
E
e
x
p
s
ense
Deferr
and Re
ed Ch
lated In
arges
come
Capita
and Re
Statem
lized S
lated In
ent Ac
oftwar
come
tivity
Proper
e
S
a
tatem
n
d Rela
ty, Pla
ent Ac
t
n
e
t
d
a
Amort
nd Equ
tivity
Intang
ization
ipmen
ible As
t and
s
e
t
s
R
Accou
and Re
elated
nts Pa
lated A
Depre
yable
ciation
mortiz
Incom
a
n
ation
d Rela
e Taxe
ted Inc
s (Cur
ome S
Payroll
rent, D
tatem
eferre
Expen
ent Ac
d
s
)
e
and Re
and Re
tivity
Deferr
lated In
lated A
ed Rev
come
c
e
c
n
r
u
u
e
a
ls
Statem
Line C
and Re
osts a
ent Ac
lated In
nd Rela
tivity
c
o
m
Accrue
e
t
ed Ac
d and
c
r
u
a
ls
Expen
Warran
sed Re
ty Res
struct
e
uring C
r
ves an
Debt a
osts
d Rela
nd Rela
t
e
d
Expen
ted Int
Comm
s
e
e
r
e
st Exp
itment
ense
s, Con
Stockh
tingen
olders
cies a
nd Rela
Equit
y and
ted Ex
Stock
pense
Comp
ensatio
n Expe
nse
Example Processes
Non-Routine
Non-Routine
Estimation
Non-Routine
Non-Routine
Estimation
Estimation
Estimation
Estimation
Estimation
Non-Routine
Non-Routine
Non-Routine
Non-Routine
33
Assertion
Completeness
Completeness
34
Vendo
r comp
laints
to purc
Vendo
hasing
r state
depart
ments
ment a
r
e
concil
Disbur
re mon
ed to
semen
itored
accou
t requ
n
t
s
isition
p
a
y
a
Accou
ble de
s for n
nts pa
tail
on-tra
yable
de pay
s
u
a
b
bles a
ledger/
Approv
re revie
aging
al requ
is revie
wed
ired fo
wed a
r chan
Bank r
n
d
g
e
r
e
s
econc
concil
to ven
ed to
iliation
dor ma
genera
s prep
ster fil
System
l ledge
ared a
es
nd rev
match
r
iewed
es PO,
on a tim
receiv
System
ing rep
ely ba
presen
ort, an
sis
ts invo
d
in
v
o
ice for
ice (3System
payme
way m
only a
atch)
nt only
llows p
after 3
aymen
Disbur
w
t
a
o
y matc
se
f invoic
h
e once
Sys ments gre
paymteem automa ater than sp
nts ba tically
ecified
sed on writes
a
value checks mounts req
of app and/o
u
roved r proc ire addition
invoice esses
a
electro l approval
s
nic
Example Controls
Occurrence
Existence/Occurrence
Completeness
Valuation/Measurement
E VA L UAT I N G I N T E R NA L C O N T RO L S
Document Controls
Evalua
tion
IT Gen
eral C
ontrols
Evalua
ted?
Contro
l Depe
ndent
on IT?
Who P
erform
s?
Contro
l Type
Control Documentation
Example Controls
Vendor complaints to purchasing department are monitored
Detect
AP Clerks
No
N/A
Effective
Detect
AP Clerks
Yes
Effective
Detect
Department Head
Yes
Electronic Evidence
No
N/A
Effective
Detect
AP Supervisor
Yes
Electronic Evidence
Yes
Effective
Prevent
Accounting
No
N/A
Effective
Detect
Treasury Clerk
No
N/A
Effective
Prevent
System
Yes
Programmed Control
Yes
Effective
Prevent
System
Yes
Programmed Control
Yes
Effective
Prevent
System
Yes
Programmed Control
Yes
Effective
Prevent
CFO
No
N/A
Effective
Prevent
System
Yes
Programmed Control
Yes
Effective
This example control documentation assumes that appropriate documentation also has
been prepared of the flows of transactions through the cash disbursements process
(i.e., how transactions are initiated, recorded, processed, and reported).
35
A P P E N D I X C C O M M O N IT
G E N E R A L C O N T RO L S
Appendix C Common IT
General Controls
Listed below are illustrative IT general controls to guide project teams in identifying significant IT general controls in
their companies. These lists are not all-inclusive, and each project team will need to consider the unique IT environment
of its company.
IT Access Controls
Below is a listing of common controls over access to IT
resources.
1
36
E VA L UAT I N G I N T E R NA L C O N T RO L S
37
A P P E N D I X D E X A M P L E S E G R E G AT I O N
O F D U T I E S T E M P L AT E
Custody
of assets
Recording
Control
activity
Additional Considerations
In instances where computer or IT has been listed as performing a function checked above, consider whether (1) the
individuals authorized to enter transactions or adjustments perform other incompatible duties and (2) whether there are
procedures to ensure that only authorized individuals have the capabilities to enter the transactions or adjustments.
In addition, when the computer or IT has been identified as performing potentially incompatible duties, consider
whether the segregation of duties within the IT department and/or other controls result in effective segregation of duties.
Conclusion
Have any potentially conflicting duties been identified?
YES
NO
If potentially conflicting duties have been identified, note them and either (1) indicate their effects on our evaluation of
the controls over the cash disbursements application and our assessment of the risk of fraud, or (2) indicate where in the
documentation their effects are considered.
38
E VA L UAT I N G I N T E R NA L C O N T RO L S
E R N S T & Y O U N G LLP
www.ey.com