350 Controls

Inventory master data

contains a record of each item that is stocked in the warehouse or is regularly ordered from a vendor.

Turnaround documents

Cash Receipts recommended control plans when the remittance advice that accompanies a payment is the stub from a statement or invoice, the entry of the payment data can be much more efficient and accurate.

lockbox

Cash Receipts recommended control plansCash Receipts recommended control plans a third-party service that collects and processes checks for an organization.

Reconcile bank account regularly

Cash Receipts recommended control plans A bank statement will reflect actual cash deposits and the correct amount of those deposits.

Monitor open accounts receivable

Cash Receipts recommended control plans An organization should regularly review accounts receivable aging reports to ensure that cash is received in a timely manner.

Immediately separate checks and remittance advices

Cash Receipts recommended control plans when checks are received in the billing organization, the RAs should be immediately separated from the checks.

Immediately endorse incoming checks

Cash Receipts recommended control plans when checks are received within the billing organization, they must be protected from being fraudulently appropriated.

Independent validation of vendor invoices

Ch 13 recommended control plans To preclude unauthorized and invalid accounts payable records, authority to record a vendor invoice should come from the PO and receiving report data created by entities other than the entity that records the vendor invoice.

Reconcile bank account

Ch 13 recommended control plans- Records of cash disbursements should be matched to the bank's records to ensure that all disbursements actually made by the bank were authorized and accurate.

Match invoice, purchase order, and receiving report

Ch 13 recommended control plans- the invoice should be matched to the PO and receiving report data to ensure that items on the invoice were ordered and received (validity) and that the invoice is accurately recorded

Independent authorization to make payment

Ch 13 recommended control plans- to ensure that only authorized payments are made, the AP records on which the payment is based should be created by an entity other than the entity that executes the payment. Typically, this requires segregation of duties between AP and the cashier or between functional areas within AP

Independent Authorization to record receipt

Chapter 12 control plans Before a receipt can be accepted and recorded, the receipt data should be compared with the PO master data to determine that an approved PO, prepared by someone other than receiving personnel, is on file.

Compare input receipt data to PO data

Chapter 12 control plans Before a receipt can be accepted and recorded, the receipt data should be compared with the PO master data to determine that the correct goods have been received.

Compare vendors for favorable prices, terms, quality, and product availability

Chapter 12 control plans Before executing a purchase, prospective vendors should be compared to determine that they are the optimal choice for the purchase

Independent vendor master data maintenance

Chapter 12 control plans Requires that there is a separation of duties between the personnel who create vendor records and those that create and approve POs, record AP, and approve payments

Inspect goods

Chapter 12 control plans To ensure that the correct goods are received in acceptable condition

Confirm purchase order to requesting department

Chapter 12 control plans To prevent duplicate purchase requests and to allow the requesting department to ensure that a PO is created, the requesting department should be informed when a PO has been issued in response to a purchase requisition.

Use authorized vendor data

Chapter 12 control plans Vendors should be vetted to determine their suitability to provide the organization with goods and services. the screening process might include vendor financial viability and performance record.

Approve purchase requisition

Chapter 12 control plans an authorized individual, or several, such as cost center or department management, should approve purchase requisitions to ensure that the purchase is within an applicable budget and that the purchase is desirable.

Approve purchase order

Chapter 12 control plans before being issued, the appropriate personnel should approve POs to ensure that an appropriate supplier has been selected and that the correct goods and services, for the correct amounts, are being purchased.

Customer Master Data

Contains a record of every customer with whom we are authorized to regularly do business with.

Sales event data

Contains invoice records. In manual process, the sales event data store is called sales journal

Cash disbursements events data

Contains, in chronological sequence, the details of each cash payment made.

Sales order master data

Created on completion of a sales order. Then, after goods have been shipped, the sales order record is updates.

Logical Data Descriptions

Customer Master Data Inventory Master Data Marketing Data Sales Order Master Data Accounts Receivable master data

Confirm customer accounts regularly

Recommended control Plans CH 11 The customer can be used as a means of controlling the billing process; the customer can review the report of open invoices to determine that the invoices are valid and accurate.

Independent pricing data

Recommended control Plans CH 11 This assumes that a segregation of duties exists between those who approve unit prices and those involved in the selling function, such as customer sales representatives and billing clerks.

Check for authorized prices, terms, freight, and discounts

Recommended control Plans CH 11 This ensures that invoices, accounts receivable, and revenue reflect prices, terms, freight, and discounts authorized by management.

Independent billing authorization

Recommended control Plans CH 11 This establishes, for the billing personnel, that the shipment is supported by an actual sales order. Typically this would be accomplished by seending a copy of the sales order from customer service directly to the billing department or by giving the biling personnel access to open sales order records on the sales order master data.Without this control, billing inputs might be for shipments never requested by a customer.

Compare input shipping notice to sales order master data

Recommended control Plans CH 11 This is an example of compare input data to master data, which ensures that the invoice, accounts receivable, and revenue accurately reflect the items and quantities ordered by, and shipped to, the customer.

Review shipped not billed sales order

Recommended control Plans CH 11 by monitoring the sales order that have been shipped but not yet billed, we can ensure that all shipping notices are billed in a timely manner

Independent customer master data maintenance

Recommended control plan, ch 10 This assumes that there is a segregation of duties between the personnel who create the customer record and the personnel who create the sales order.

Independent shipping authorization

Recommended control plan, ch 10 This establishes, for the shipping personnel, that someone other than the warehouse personnel authorized the shipment.

Compare shipment to sales order and picking ticket

Recommended control plan, ch 10 This is an example of one for one checking that ensures that the shipment will be authorized and accurate.

Review file of open sales orders (tickler file)

Recommended control plan, ch 10 This is to detect any shipments that should have taken place. This will ensure that all shipments will be made in a timely manner.

Compare picking ticket to picked goods

Recommended control plan, ch 10 this is an example of one for one checking that ensure that the correct goods are picked from the shelf and that any errors are detected and corrected in a timely manner.

Customer Credit check

Recommended control plan, ch 10 this is performed to ensure that an organization does not extend more credit to a customer than is prudent.

Accounts receivable adjustments events data

Store is created as sales returns, bad debt write-offs, estimated doubtful accounts, or similar adjustments are processed.

Accounts receivable master data

a repository of all unpaid invoice issued by an organization and awaiting final disposition.

Balance forward system

accounts receivable records consist of a customer's balance, categorized as current and past due, and current account activity, including such items as current charges, finance charges for past due balances, and payments.

purchasing events data

contains, in chronological sequence, the details of each invoice that is recorded. Each record shows the date recorded, vendor invoice number, account distributions,...

Cash receipts event data

created when customer payments are recorded, contains the details of each payment as reflected on the RA accompanying a payment.

Accounts payable master data

is a repository of all unpaid vendor invoices. The data includes vendor number, vendor invoice number and date, terms, date due, line item details and invoice totals

open item system

the accounts receivable master data is organized so that each record consists of individual open invoices, against which payments and other adjustments are applied