- How are off-balance-sheet transactions and commitments tracked and reported?
- Are payments to the external auditing firm monitored through the transactional flags on purchase orders, check requests, or other means within the system?
- Are rolling forecasts deployed throughout the business (business unit, product line, functional levels)?
- How many tools are used in the forecasting process? The budgeting process?
- Do the reporting systems trace back to the general ledgers?
- Is cash flow from operations and generally-accepted-accounting-principles (GAAP) cash flow automatically calculated?
- Are key measures (drivers of financial results) delivered to operational manager's desktops daily, weekly, monthly?
- Are tax reporting systems integrated with the company's consolidation system?
- Are consolidation and reporting activities performed on spreadsheets?
- Do transactional reporting systems have agent-based alerts?
- How are manual entries identified and approved?
- How much time is spent compiling data and the financial statements versus analyzing the data?
- How many top-level adjustments are made in the consolidation process?
- Are reporting activities performed on spreadsheets?
- How often is control documentation updated for new changes to the internal controls (transactional and financial statement)?
- Are controls in place to ensure that any off-balance-sheet items are properly approved?
- Do reporting systems flag reserves and other estimated accounts?
- Have the systems been updated to identify new responsibilities under the Sarbanes-Oxley Act?
- Are earnings forecasts tied to predictive models?
- Do you forecast your business on cash flow drivers?
- Are variance between the forecast and actual results reviewed and causes identified?
- How long is the process to develop forecasts? Budgets?
- Is there a significant difference between financial statements depending on timing, function, or system?
- Are standard charts of accounts used across the company?
- How long does it take the company to get the results of operations?
- What procedures are in place by the company to detect and prevent fraud?
- Has the company identified high risk areas where fraud may occur and developed controls to prevent this from occurring?
- Are the following categories of non-financial drivers measured: Leadership, communication, brand equity, reputation, networks/alliances, technology, human capital, culture, innovation, intellectual capital, or adaptability?
- Do sales systems flag quarter-end sales volumes over selected limits?
- How long does it take to develop ad hoc reports?
- Do you model the sensitivity of your off-balance-sheet commitments (swap agreements, foreign exchange risk, purchase commitments, etc.)? How often?
- Does the company have the ability to determine the profitability by using "what if" scenarios?
- Have financial models been created for all high-risk operations, programs, etc.?
- How long does it take to create the management package?
- Does each operating unit have a financial model for the key drivers of its business?
- Are documents backed up periodically to ensure significant reports and information are maintained?
- Does the company have a retention policy for electronic information?
- Are internal control reviews incorporated into all new system implementations (financial and non-financial)?
- How often do you back up your data?
- What controls are in place over record retention to avoid tampering with the data?
- What best describes your IT capabilities related to financial transaction processing in your company?
- How many control weakness/changes have there been to the financial statements controls (including in the authorization of transactions, safeguarding assets, maintaining records and over the reconciliation process) in the past year?
- How many different systems are involved in the financial statement development process?
- Are IRS and other data retention requirements being met?
- Is your starting point for your tax return GAAP-audited financial statements?
- Are there flags in place to alert key resources of specific transactions taking place in the company?
- Does the company review its transactions for unusual entries?
- What controls are in place to detect wire/mail?
This is the news and personal publishing site of Ronald Bartels that wanders on and off the subject of Information Technology. Mostly now the topics are about IoT and SD-WAN.
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