ACCOUNTING INTERNAL CONTROL

“What is government itself but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary.” ~ James Madison

OVERVIEW

Undoubtedly, Accounting Internal Controls are fundamental in the day to day activities of business organizations. If properly put in place, the result is accurate and reliable accounting records and information, assurance of proper safeguard of assets of the organization, efficiency in the firm’s operations and compliance with management’s prescribed policies and procedures.

Participants of this course will be taught the basic yet effective industry suggested internal control policies and procedures and other precautionary measures to safeguard the organization’s assets such as cash, inventories and fixed assets.

LEARNING OBJECTIVE

  1. To define internal control and identify its purposes and principles.
  2. To recognize fundamental tasks performed in the revenue and expenditure cycle
  3. To identify the functional departments involved in revenue and expenditure activities and trace the flow of transactions through the organization
  4. 4. To specify documents, journals, and accounts that provide audit trails, promote maintenance of historical records, support internal decision making and sustain financial reporting
  5. To understand the risks / exposures associated with the revenue and expenditure cycle and recognize the controls that reduce such risks.
  6. To apply internal control over cash receipts and disbursements
  7. To understand why businesses use a petty cash fund and the need of bank reconciliation statements
  8. To understand the benefit of using an Internal Control Checklist

LEARNER’S BENEFIT

At the end of the training, participants will be able to:

  1. Learn the different processes that need to be put in place to safeguard assets and reduce the possibility of fraud.
  2. Identify redundancies in operational and control procedures and provide recommendations to improve efficiency and effectiveness of the procedures.
  3. Identify deficiencies and remedy them prior to external or regulatory audits.
  4. Appreciate that internal control makes the organization process-dependent instead of person dependent
  5. Understand the corresponding accountabilities within the organization.

TARGET AUDIENCE

This course is with immense benefits to Business Owners, Functional Managers and Staff involved in Accounting and Finance, Logistics and Warehousing, Quality Assurance, Payroll and Asset Management.

This course is highly recommended as well for individuals who need to and want to learn about reducing the risks of asset appropriation through application of internal control policies and procedures.

LEARNING OUTLINE

A. FRAUD AND ACCOUNTANTS

  1. Meaning of Fraud
  2. Fraud in Business Environment
  3. Auditor’s Two Levels of Fraud
  4. Factors that Contribute to Fraud
  5. Asset Misappropriation – The Most Common Type of Fraud

B. UNDERSTANDING INTERNAL CONTROL

  1. Internal Control Concepts and Procedures
  2. Limitations of Internal Control
  3. Internal Control Models – Preventive, Detective and Corrective Controls
  4. Control Activities – Computer Controls and Physical Controls
  5. Six Categories of Physical Controls

C. THE REVENUE CYCLE – Sales and Cash Receipts

  1. Overview of Revenue Cycle Activities
  2. The Sequence of Activities – From Sales to Collection
  3. The Cash Receipts System
  4. The Revenue Cycle Controls

PRACTICAL LEARNING ACTIVITY 1

D. THE EXPENDITURE CYCLE – Purchases and Cash Disbursements

  1. Purchases and Cash Disbursements Procedures
    1. a) The Inventory Control
    2. b) The Cash Disbursement System
    3. c) Expenditure Cycle Controls
  2. Payroll Processing
    1. a) Overview of Payroll Activities
    2. b) Payroll Controls
  3. Fixed Asset Procedures
    1. a) The Logic of a Fixed Asset System
    2. b) Controlling the Fixed Asset System

PRACTICAL LEARNING ACTIVITY - 2

E. COMPANY CONTROLS OVER CASH

  1. Imprest System of Cash Control
  2. The Petty Cash Fund
  3. Types of Fraud Involving Cash
  4. The Bank Reconciliation

PRACTICAL LEARNING ACTIVITY - 3

F. THE INTERNAL CONTROL CHECKLIST

OUR PARTNER’S PROFILE

  • Certified Public Accountant (CPA), PRC
  • MBA with high distinction award, PSBA
  • Accounting Services Consultant for companies in the Agricultural, Distribution, Retail, Construction, Electrical, Business Process Outsource, Information Technology, and Software Development Industries
  • Accounting Professor, PSBA
  • Former Accounting Services Head of Easy Bio Systems (Phils.)
  • Former Accounting Professor of National University, Treston International College

UPCOMING PUBLIC TRAINING SCHEDULE

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