internal controls assessment
1. Planning and Preparation
2. Risk Assessment
3. Control Environment
4. Control Activities
- Review processes and procedures.
- Engage process owners for insights.
- Map out existing control activities.
- Prioritize controls based on risk assessment.
- Ensure alignment with organizational objectives.
- Assess the adequacy of control designs.
- Confirm controls are in place and operational.
- Review documentation for each control.
- Identify gaps or overlaps in control activities.
- Engage stakeholders for feedback on effectiveness.
- Select a sample of transactions for testing.
- Perform walkthroughs to validate controls.
- Evaluate results against established criteria.
- Document any deviations or exceptions.
- Communicate findings with relevant stakeholders.
- Compile a report of testing results.
- Detail identified deficiencies with examples.
- Prioritize issues based on severity.
- Provide recommendations for remediation.
- Ensure documentation is clear and accessible.
- Identify key activities within the organization.
- Develop clear control objectives for each activity.
- Communicate objectives to relevant stakeholders.
- Ensure understanding and alignment across teams.
- Document objectives for future reference and accountability.
- Identify critical processes requiring segregation.
- Assign different individuals to key tasks.
- Document roles and responsibilities clearly.
- Monitor for adherence to segregation practices.
- Review periodically to ensure ongoing compliance.
- Identify changes in the business environment.
- Assess impact on existing control activities.
- Update controls as necessary to address changes.
- Communicate updates to all relevant parties.
- Document revisions to maintain an audit trail.
- Schedule training sessions for relevant personnel.
- Develop training materials covering key control activities.
- Facilitate interactive discussions to enhance understanding.
- Gather feedback to improve future training sessions.
- Document attendance and training effectiveness.
- Define approval thresholds for different transaction types.
- Identify individuals responsible for approvals.
- Document approval processes and requirements.
- Communicate approval requirements to all stakeholders.
- Review and update approval processes periodically.
- Identify processes suitable for automation.
- Assess available technology solutions for control automation.
- Develop and implement automated control mechanisms.
- Test automated controls for effectiveness and reliability.
- Monitor and adjust automation as needed.
- Establish a reconciliation schedule.
- Identify accounts and transactions to reconcile.
- Assign personnel responsible for reconciliations.
- Review reconciliation results for discrepancies.
- Document findings and corrective actions taken.
- Develop a compliance monitoring plan.
- Schedule periodic assessments of control activities.
- Review compliance results and identify issues.
- Document findings and recommendations.
- Communicate results to management for action.
- Identify assets and data requiring protection.
- Evaluate existing physical and IT security measures.
- Conduct risk assessments to identify vulnerabilities.
- Recommend improvements based on assessment findings.
- Document security control assessments and updates.
- Define documentation requirements for each control activity.
- Establish a centralized repository for documentation.
- Train staff on documentation best practices.
- Regularly review documentation for accuracy and completeness.
- Ensure access controls are in place for sensitive records.
- Establish criteria for generating exception reports.
- Schedule regular reviews of exception reports.
- Investigate identified anomalies thoroughly.
- Document findings and actions taken.
- Adjust controls to mitigate future risks.
- Select processes for walkthrough reviews.
- Gather relevant personnel for walkthrough sessions.
- Observe and document each step of the process.
- Identify any discrepancies from documented controls.
- Provide feedback and recommendations for improvement.
5. Information and Communication
6. Monitoring Activities
- Identify existing monitoring activities.
- Review frequency and scope of these activities.
- Check for documentation of monitoring results.
- Assess timeliness in addressing findings.
- Determine integration with risk management processes.
- Review internal audit plans and schedules.
- Evaluate auditor independence and qualifications.
- Assess the scope and depth of audits conducted.
- Examine follow-up on audit recommendations.
- Gather feedback from audit recipients.
- Collect documentation of identified deficiencies.
- Assess management's action plans for remediation.
- Evaluate timelines for corrective actions.
- Check for communication of deficiencies to stakeholders.
- Monitor implementation of agreed-upon actions.
- Require documentation for all corrective actions.
- Establish a tracking system for follow-ups.
- Verify completion of corrective actions.
- Assess the effectiveness of implemented actions.
- Report unresolved issues to senior management.
7. Reporting and Follow-Up
8. Documentation and Review
- Record all procedures and findings.
- Use standardized templates for consistency.
- Include dates, participants, and relevant details.
- Store documents in a secure and accessible location.
- Regularly back up documentation to prevent loss.
- Analyze past assessments for insights.
- Identify areas for improvement in the checklist.
- Incorporate feedback from team members.
- Schedule regular review sessions.
- Version control updates for historical reference.
- Identify applicable regulations and standards.
- Cross-reference checklist items with compliance requirements.
- Document compliance evidence for audits.
- Stay updated on regulatory changes.
- Train staff on compliance expectations.
- Engage stakeholders through surveys or interviews.
- Encourage open discussions about the process.
- Document and analyze the feedback received.
- Implement feasible suggestions into practices.
- Follow up to assess the effectiveness of changes.
Use in Manifestly