Object Finance Analysis Forex

Programs for each company’s internal control and audit can vary, but here is an outline of how to apply these elements within and utility organizations that provide for management analysis and decision making of senior and management.

INTERNAL CONTROL PROGRAM FOR THE COMPANY AND AUDIT

To validate the information the company has provided with respect to the item available, setting the audit program and internal control by developing the points listed below:

1. Review and assess the strength and / or weaknesses of internal control system and based on that review:

Compliance testing and determine the extent and timing of audit procedures applicable under the circumstances.

Prepare a memorandum or report on the results of the work, conclusions and comments about the strength and / or internal control weaknesses that require immediate action or may be appropriate points for the letter of recommendations.

2. Plan and carry out substantive testing of the figures showing the financial statements that are necessary under the circumstances.

DESCRIPTION:

The available is defined as the group that includes accounts that record cash resources immediately, in whole or in part, available to the economic entity and can be used for specific purposes, among which we mention the cash, deposits banks and other financial institutions.

Available management.

* Clarify the roles, responsibilities and obligations of staff who are in the custody of cash and pre-payment authorization
* In search of greater security to the handling of cash is advisable to determine a maximum amount for individual payments
* Control who and how are payments made by the box.
* Make contracts backed warranty policies for safeguarding cash.

EVIDENCE OF COMPLIANCE:

These seek to obtain evidence about internal control procedures, in which the auditor found confidence in the system to determine if they are being applied in the manner prescribed.

The auditor will seek to ensure the existence of control, the effectiveness with which it performs this check and determine whether the controls have been applied continuously throughout the period.

Type of Transaction: Cash Check entry:
A. The objective is to determine if the controls operate as intended and to evaluate the existence and responsible use of equipment used in the cash receipt process.

B. Observation of the work undertaken by managers both general housing and smaller boxes to determine whether it meets the cash receipt procedures and that its management is consistent with the management of pre-established company policies earlier.

C. Interviews with company personnel to determine if they match the procedures described in cash to certain functions in the manual and control plans.

D. Repetition of the internal control procedures to determine whether the cash management process step by the respective controls that allow total truthfulness and responsibility of the manager to handle general and lower boxes.
Confirm the carrying of identity cards to visitors in order to avoid confusion within the organization.

Note that there really is separation of duties between the person authorizing the payment of a bill and the cashier.

Examine the existence of documents that support the daily tonnage of cash as a means of controlling inputs and outputs of this, determining compliance with established rules for handling.
Observe the requirements of personal income to the treasury departments to determine if additional controls are needed to give greater security to the general cash management or direct access to the offices of those who handle juvenile cases.

Verification of the development of adjustments to the accounts of banks when they have received the respective reconciliations thereby controlling the balance of the different accounts.

Verify the existence and implementation of a management policy available.
Determine the efficiency of the policy available from the company.
Verify that the media accounts registered as available, are in order and according to the laws.

See if the crediting of accounts of the available transactions is recorded properly.
Check that there is a complete analysis of available management to identify gaps and implement the necessary corrections

Check if the available information about the company, due date is passed promptly to the administration and managers within the company.

Verify the existence of a manual of personnel functions of the accounts available.

Like the knowledge and fulfillment by the employees.
Should be kept in a safe place, preferably by mechanical means such as safes, important documents such as checkbooks, securities, business cards bearing the signatures are authorized to issue checks, security keys, etc…

SUBSTANTIVE TESTS:

Transaction Type: Cash and Banks
To determine the correct balances.
A. Arithmetic correction

Add some relationships that present the company and could be included within the audit working papers.

Auxiliary reconcile the balances of general ledger accounts.
B. Existence or occurrence, rights and obligations and valuation or allocation,
Count the cash on hand:

Check all cash and negotiable instruments held by the company until all funds have been told to insist that the effective manager be present during the calibration.

Get a receipt signed by the fund manager as proof that the funds were returned to the client complete satisfaction,
Ensure that all deposited checks in order to be delivered to the customer either directly or through endorsement.
Confirmation of bank balances:

It is customary to confirm the balances on deposit in bank accounts in the balance sheet date for such purpose by constructing a model of bank confirmation, requested as part of the banks balance tests.
C. Correction and Inclusion:

Perform tests to ensure that all items are required to be included and eliminate those items that should not be included.

At the end of the year is considered essential that there is a cut of transactions of cash inflows and outflows of whether to present the correct balance of cash on the balance sheet and financial statements reasonably disclose financial information and operating results.

Review or prepare bank reconciliations:

Collate responses bank balances with bank confirmations.
Verify the validity of the items comprising the settlement, such as deposits in transit and checks issued by the company and still outstanding in the bank checks denominated in transit times

Review bank statements in search of alterations or modifications of figures.

When internal controls are deficient, the auditor may personally carry out any bank reconciliation.

Obtain and use bank statements to a later date at the end:
The company should ask your bank to send statements, which must be sent directly to the auditor.

Upon receiving the bank statement after the closing date, and checks paid in that range and notices of charges and credits, compare all checks issued in the previous year with a list of outstanding checks, as evidenced the period-end reconciliation.

It also ensures that the deposits in transit on the bank reconciliation period to have been accredited by the bank as deposits in the state after the closure also will review the bank statements and other receipts in search of suspicious items.

Track bank transfers:

When a wire transfer occurs, several days elapse before the check is paid by the bank on which it was issued. Therefore, the cash deposited by the accounting records during this period will be overestimated, since the check will be included in the balance on deposit and which will not subtracted from the bank on which book.

To obtain evidence about the validity of bank transfers or check for errors or irregularities produces a card checks to a closing date near the closing date.
Effective test preparation:

Get the total bank books and bank statements and cash in bank account, respectively.

Get the games plea for conciliation both initial reconciliations of balances as of the end balances.
Identify reconciling items.

Analytical revisions:

Should be compared with cash balances of the budgeted expectations and study reports changes in the monthly cash budget.

D. Financial Statement Presentation and Disclosure Enough.
Conduct research and inspect documentation for restrictions of cash and charges.

Consider the presentation and disclosure statements with accounting principles generally accepted

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