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Basics of financial process and application controls

I am looking for a write-up on some brief overview of the financial process and the respective components being involved (ledger, account balances, ACH etc) from an IT standpoint. I understand that this differs w.r.t each organization. But a basic overview of this and with the application controls, will be a good start for persons like me who have just stepped into auditing.

Can somebody throw light on this pls..?
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RE: Basics of financial process and application controls

From the audit perspective I think you should consider the following;

* The number of systems involved in the process because some systems feed into each other. AN example where transactions that make the credit part are from a different system and the debit from another system.

* Then the accuracy of the data on the accounting system would be a good test

* The ability to alter data on the accounting system is a must do test

* Develop a good understanding of the process flow of the reconciliations process. Some accounts are automatically reconciled by the system and some manually. Look out for ability to manually debit suspense accounts this is a good source of frauds

* Understand what type of entries should ideally go through the different suspense accounts.

* check whether there are any manual interventions involved in the processes

* Check whether there is proper segregation of duties in the process.

SSERUNKUMA IANLively at 5/14/2013 11:14:52 AM Quote
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RE: Basics of financial process and application controls

Thanks. That gives a fair idea and precisely the stuff that i was looking forward. Do we have any case studies/scenarios for this?
Balaji Swaminathan252Lively at 5/20/2013 4:48:48 PM Quote
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(Unrated)

RE: Basics of financial process and application controls

Please share with me

SSERUNKUMA IANLively at 5/21/2013 12:07:53 AM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

Please share with me

SSERUNKUMA IANLively at 5/21/2013 12:07:53 AM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

Thanks. That gives a fair idea and precisely the stuff that i was looking forward. Do we have any case studies/scenarios for this?
Balaji Swaminathan252Lively at 5/20/2013 4:48:48 PM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

From the audit perspective I think you should consider the following;

* The number of systems involved in the process because some systems feed into each other. AN example where transactions that make the credit part are from a different system and the debit from another system.

* Then the accuracy of the data on the accounting system would be a good test

* The ability to alter data on the accounting system is a must do test

* Develop a good understanding of the process flow of the reconciliations process. Some accounts are automatically reconciled by the system and some manually. Look out for ability to manually debit suspense accounts this is a good source of frauds

* Understand what type of entries should ideally go through the different suspense accounts.

* check whether there are any manual interventions involved in the processes

* Check whether there is proper segregation of duties in the process.

SSERUNKUMA IANLively at 5/14/2013 11:14:52 AM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

From the audit perspective I think you should consider the following;

* The number of systems involved in the process because some systems feed into each other. AN example where transactions that make the credit part are from a different system and the debit from another system.

* Then the accuracy of the data on the accounting system would be a good test

* The ability to alter data on the accounting system is a must do test

* Develop a good understanding of the process flow of the reconciliations process. Some accounts are automatically reconciled by the system and some manually. Look out for ability to manually debit suspense accounts this is a good source of frauds

* Understand what type of entries should ideally go through the different suspense accounts.

* check whether there are any manual interventions involved in the processes

* Check whether there is proper segregation of duties in the process.

SSERUNKUMA IANLively at 5/14/2013 11:14:52 AM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

Thanks. That gives a fair idea and precisely the stuff that i was looking forward. Do we have any case studies/scenarios for this?
Balaji Swaminathan252Lively at 5/20/2013 4:48:48 PM Quote
You must sign in to rate content.
(Unrated)

RE: Basics of financial process and application controls

Please share with me

SSERUNKUMA IANLively at 5/21/2013 12:07:53 AM Quote
You must sign in to rate content.
(Unrated)

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