Safeguarding of Assets - Essay

1080 Words Dec 25th, 2010 5 Pages
330 : Safeguarding of Assets.
340 : Economical and Efficient Use of Resources.
350 : Accomplishment of Established Objectives and Goals for Operations or Programs

330 Safeguarding of Assets -- Internal auditors should review the means of safeguarding assets and, as appropriate, verify the existence of such assets

Safeguarding of assets is those policies and procedures that "provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company 's assets that could have a material effect on the financial statements." This definition is consistent with the definition provided in the Committee of Sponsoring Organizations (COSO), Reporting to External Parties, which
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Internal auditors should ascertain whether such objectives and goals conform with those of the organization and whether they are being met.
The term "operations" refers to the recurring activities of an organization directed toward producing a product or rendering a service. Such activities may include, but are not limited to, marketing, sales, production, purchasing, human resources, finance and accounting, and governmental assistance. An operation 's results may be measured against established objectives and goals which may include budgets, time or production schedules, and/or operating plans.

The term "programs" refers to special purpose activities of an organization. Such activities include but are not limited to the raising of capital, sale of a facility, fund-raising campaigns, new product or service introduction campaigns, capital expenditures, and special purpose government grants. Special purpose activities may be short-term or long-term, spanning several years. When a program is completed, it generally ceases to exist. Program results may be measured against established program objectives and goals.
Management is responsible for establishing criteria to determine if objectives and goals have been accomplished.

Internal auditors should ascertain whether criteria have been established. If so, internal auditors should use such criteria for evaluation if they are considered adequate.

If management has not established

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