This project demands significant involvement by IT personnel, Accounting and CIO. Our success is highly dependent on everyone’s efforts. To help achieve a smooth and successful implementation, it will be our responsibility to:
“The nature and extent of planning activities that are necessary depend on the size and complexity of the company, the auditor 's previous experience with the company, and changes in circumstances that occur during the audit. When developing the audit strategy and audit plan, the auditor should evaluate whether the following matters are important
The third part of the action plan will be to assess the progress of changes. This requires measuring current and future performance against past performance, which will need to be assessed more in depth than the initial tracer patient audit. The last portion of the corrective action plan not only assesses the change, but might also include further revisions to the change in policy and procedures if it is found that performance is inconsistent with the standards set forth by the Joint Commission. The part of the plan has four parts that consist of:
In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).
This plan includes a short summary of the most important data obtained from the BIA, such as the business unit, responsible manager, process/business function, recovery time objective (RTO), and estimated daily financial losses. Have it approved by senior management. Why? Because it will almost certainly require funding, and your senior management needs to know at least the estimated cost before they can approve it.
The warehouse needs to understand their role in rerouting deliveries. The IT group must understand their very important role of backing up of data. Because of this, each department should be reviewing their plan quarterly to allow for updates. The plan should be reviewed each time a major change is made, such as a new location is opened or computer systems are converted.
Objective: Prepare journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and the percentage of receivables methods.
Step 2: Post from General Journal to General Ledger for all affected accounts on pages 7 to 13.
Examine list of accounts previously written off and determine efficacy of follow-up procedures, tracing amounts into accounting records (S‑9).
Phase 2 – Develop, test and implement the plan. Here, attention to detail and active participation by all stakeholders ensure the development of a plan worth implementing. The plan itself must include the recovery strategy with all of its detailed components and the test plan.
When you have open and honest communication in your company, it will remove any ambiguity and allow your employees to trust the plan, trust the process and most importantly trust the