Internal Control and Test Approach for general accruals 1711

  • Would anyone care to share how their organization has documented internal controls supporting general accrued expenses. Additionally, what does the test approach look like for SOX?
    In particular, our scenario is contractor expenses managed by IT professionals outside of the accounting function. They are responsible for providing accruals to finance each month prior to close. We need to get comfortable with completeness.

  • the actual control activities will need to be based on how you operate from day to day so as to enable a smooth transition.
    Ideally, you should identify your objectives, such as cut -off. existence, occurence, completeness and accuracy etc, and then look at what you do every day to ensure that these are covered

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