Requirement Provide at least one assertion addressed by each control. 1. Cash ge
ID: 2411701 • Letter: R
Question
Requirement
Provide at least one assertion addressed by each control.
1. Cash general ledger accounts are reconciled to bank statements on a timely basis (daily, weekly, or monthly depending on volume ofactivity). Reconciling items are clearly identified on a reconciliation form and followed up on a timely basis. Reconciliations are regularly reviewed and approved by a supervisor.
2.Employees who reconcile bank accounts are restricted from making general ledger entries or disbursing or wire-transfering funds from bank accounts.
3.A person independent of the accounting and reconciliation functions receives the bank statements directly from the bank unopened and scans activity for anything unusual.
4.EFT transactions may be initiated only by authorized individuals.
5.Documented approval for a wire transfer is required to be obtained before the wire is executed. Callback procedures are used to validate the authenticity of the individual requesting the wire. Phone requests are accepted only for those customers for whom the bank has a completed wire transfer agreement on file and a PIN or preauthorized code has been assigned.
6.There is appropriate segregation of duties between individuals involved in input, verification, and approval functions of the wire transfers.
7.Prior approval for wire transfers in excess of preset limits is required.
8.Data files are protected from unauthorized access through the establishment of user IDs and passwords that are periodicallyreviewed.
9/Entity has control procedures in place to prevent unauthorized checks from clearing the bank or unauthorized amounts.
10.Management periodically evaluates organizations where it has deposits for credit concerns.
Uninsured balances are maintained only at
11.Documentation is maintained relative to applicable restrictions on cash accounts. Restrictions are monitored and procedures are in place to ensure that cash is utilized only for restricted purposes.
12.A control list of organizations with which the company has deposits is maintained. Financial statements prepared internally are reviewed consistently by a member of management to ensure that cash overdrafts are properly reported as liabilities.
13.Compensating balance arrangements are identified and monitored.
1. Cash general ledger accounts are reconciled to bank statements on a timely basis (daily, weekly, or monthly depending on volume ofactivity). Reconciling items are clearly identified on a reconciliation form and followed up on a timely basis. Reconciliations are regularly reviewed and approved by a supervisor.
2.Employees who reconcile bank accounts are restricted from making general ledger entries or disbursing or wire-transfering funds from bank accounts.
3.A person independent of the accounting and reconciliation functions receives the bank statements directly from the bank unopened and scans activity for anything unusual.
4.EFT transactions may be initiated only by authorized individuals.
5.Documented approval for a wire transfer is required to be obtained before the wire is executed. Callback procedures are used to validate the authenticity of the individual requesting the wire. Phone requests are accepted only for those customers for whom the bank has a completed wire transfer agreement on file and a PIN or preauthorized code has been assigned.
6.There is appropriate segregation of duties between individuals involved in input, verification, and approval functions of the wire transfers.
ssertion odin Description Existence and occurrence EO Recorded transactions and events did occur and do pertain to the entity. Assets, liabilities, and equity interests exist. Disclosed events and transactions have occurred and pertain to th zation. All transactions and events that should have been recorded have been recorded. All assets, liabilities, and equity interests that should have been recorded are recorded. All disclosures that should have been included are included in the financial statements Completeness Rights and obligations ROThe organization holds or controls the rights to assets, and liabilities are true obligations of the o tion. Valuation and allocationVAAssets, liabilities, and equity interests are included in the financial statements at appropriate amounts, and any resulting valuations ofallocation adjustments are a Transactions and events have been recorded in the correct accountingperiod. ately recorded Cutoff CO PC Amounts and other data relating to recorded transactions and Presentation an Classification events have been recorded appropriately. Financial information is appropriately presented and described and disclosures are clearly expressed. Financial and other information is disclosed fairly and at a ate amountsExplanation / Answer
completeness. Right and obligation. Existence Right and obligation Presentation Classification Obligation Right Valuation Presentation Allocation Occurance Cut off
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