Accounting Control Best Practices

Accounting Control Best Practices, Second Edition......Page 1
Contents......Page 5
Preface......Page 7
About the Author......Page 9
1–1 Control Point......Page 11
1–2 High-Risk Areas......Page 14
Summary......Page 17
2–1 Basic Accounts Payable Controls......Page 19
2–2 Controls for a Computerized Accounts Payable Environment......Page 24
2–3 Automated Check Signing......Page 31
2–4 Use Procurement Cards......Page 35
2–5 Use Electronic Payments......Page 58
2–6 Use Evaluated Receipt Settlement......Page 61
2–7 Automate Repetitive Payments......Page 67
Summary......Page 68
3–1 Basic Order Entry, Credit, and Shipment Controls......Page 69
3–2 Controls for a Computerized Order Entry, Credit, and Shipment Environment......Page 75
3–3 Integrate Credit Management into Order Entry......Page 81
3–4 Receive Electronic Orders......Page 87
3–5 Drop-Ship Ordered Items......Page 90
3–6 Controls for Shipments to Evaluated Receipt Customers......Page 93
3–7 Order Entry, Credit, and Shipment Policies......Page 97
Summary......Page 100
4–1 Controls for Basic Inventory Acquisition......Page 101
4–2 Controls for Basic Inventory Storage and Movement......Page 105
4–3 Controls for Inventory Valuation......Page 110
4–4 Controls for Goods in Transit......Page 120
4–5 Controls for Obsolete Inventory Determination and Handling......Page 122
4–6 Controls for a Basic Perpetual Inventory Tracking System......Page 123
4–7 Controls for a Computerized Perpetual Inventory Tracking System......Page 127
4–8 Controls for Advanced Warehouse Systems......Page 135
4–9 Controls for Manufacturing Resources Planning......Page 140
4–10 Controls for Just-in-Time Systems......Page 146
4–11 Inventory Policies......Page 148
Summary......Page 151
5–1 Basic Billing Controls......Page 153
5–2 Controls for a Computerized Billing Environment......Page 159
5–3 Controls for Advanced Billing Systems......Page 164
5–4 Controls for Credit Memos......Page 167
5–5 Billing Policies......Page 168
Summary......Page 170
6–1 Collection Controls......Page 171
6–2 Collection Procedures......Page 175
6–3 Collection Policies......Page 177
Summary......Page 178
7–1 Basic Check-Handling Controls......Page 179
7–2 Controls for a Computerized Check-Handling Environment......Page 186
7–3 Controls for Lockbox Receipts......Page 192
7–4 Lockbox Truncation......Page 194
7–5 Basic Cash Receipts Controls......Page 196
7–6 Basic Credit Card Receipts Controls......Page 199
7–7 Petty Cash Controls......Page 202
7–8 Investment Controls......Page 207
7–9 Cash-Handling Policies......Page 213
Summary......Page 217
8–1 Basic Payroll Controls......Page 219
8–2 Controls for Cash Payments......Page 232
8–3 Controls for a Computerized Payroll Computation Environment......Page 236
8–4 Controls for Computerized Timekeeping......Page 243
8–5 Controls for Payroll Self-Service......Page 245
8–6 Controls for Direct Deposit and Payroll Cards......Page 246
8–8 Controls for Outsourced Payroll Processing......Page 249
8–9 Payroll Policies......Page 252
Summary......Page 254
9–1 Fixed Asset Controls......Page 255
9–2 Fixed Asset Procedures......Page 265
9–3 Fixed Asset Policies......Page 266
Summary......Page 274
10–1 Controls for Budget Creation......Page 275
10–2 Controls for Budget Implementation......Page 282
Summary......Page 283
11–1 Controls for Financial Reporting......Page 285
Summary......Page 298
Index......Page 299