Proper Documentation of Internal Controls

Learning Objectives

• To examine the responsibilities for internal control.
• To explore what to document and evaluate documentation types
• To define the documentation process.
• To identify steps to sufficient documentation.
• To review relevant methods of flowcharting.

Course Description

Documentation comes in all forms and types. Internal controls (IC) are critical to the effective functioning of all processes. The importance of proper and relevant documentation can be viewed as a burden. Strong, relevant documentation is critical to ensure organizations can adequately monitor, manage, and adjust their processes in line with business objectives.

This CPE Auditing Course provides insights into the critical aspects of documenting internal controls within an organization. It emphasizes the significance of documentation at various stages of process maturity, showcasing a maturity model as a tool for confirmation and agreement among process owners. We will also delve into testing processes, emphasizing the need for tailored testing templates that meet organizational needs while cautioning against using them as a checklist. We will discuss examples of substantive tests of transactions, analytical procedures, and various testing details for evidence. 

Major Topics covered:

• Responsibilities for Internal Control
• What to Document?
• Types of Documentation
• Policy and Procedures
• IC Questionnaires
• Flow Chart Symbols
• Other Documentation and Procedure

Join this CPE course to familiarize yourself with commonly used documentation tools, such as narratives, flowcharts, internal control questionnaires, and control matrixes. Walk through COSO’s internal control template used to document an assessment of a system on internal control. 

Overview

• Responsibilities for internal control

  7 mins
• Governing bodies are tasked with oversight of internal controls

  20 mins
• What management resposibilties should be documented

  44 mins
• Internal controls Questionnaire

  64 mins
• Audit documentation

  84 mins
• Credits example: Types of tests used for evidence

  101 mins
• Other documentation internal audit formal reports

  107 mins