control your management using SPAMSOAP
Labels: managing people and systems
spamsoap actually is a mnemonic word for eight types of control level.spamsoap can
make our control in the office running smooth and clear.
Segregation of duties
each duties and task will be separate and should have different
responsible running by different person.this will make each
task will running effective and reduce the error in the
task.function should be separated is RACES.
RECORDING
AUTHORISATION
CUSTODY
EXECUTION
SYSTEM DEVELOPMENT AND DAILY OPERATIONS
Physical control
tight security and procedures is needed to control the access
to assets and authorisation must be limited to authorised
personnel.
Authorisation and approval
approval for every documents is needed and specified
limitation to the authority.
Management controls
Five controls function which is ORIS
Overall supervisory controls
Review of management accounts and comparison with budgets
Internal audit function
Special review procedures
Supervisory controls
centralisation will help supervision across management and
each transactions and recording can be supervise.
Organisation as a control
enterprises should have a planning,control and decision
making in their organisation to defining and allocating
responsibilities and identifying lines of reporting for all
aspects of the enterprise's operations.
specified in the delegation of the authority and responsibility
should be clear.
Arithmetical and accounting controls
auditing job must be authorised. and correctly recorded and
accurately processed.
the controls include CTRACT
Checking the arithmetical accuracy of the records
The maintenance and checking of total
Reconciliations
Accounting for documents
Control accounts
Trial balance
Personnel control
person with the specific job must have specific responsibilities
with capabilities appropriate.
As far as fraud and error prevention are concerned, the establishment and
maintenance of a good system of internal controls is and will still remain
the best measure that can be taken to minimize or prevent fraud and error.
Internal controls are those calculated conscious actions that an
organization take so as be assured that reasonable assurance towards
meeting her objectives are guaranteed, those objectives are to ensure that;
Financial information (financial statements) are reliable,
Operations are carried out in an effective and efficient manner,
Companies assets are protected and
Provisions of laws, rules and regulations are strictly adhered to
In the bid to reduce or prevent fraud, companies set out control objectives
that when achieved will mean a reduced level of prevalence of fraud.
To achieve this, control goals/ objectives and control plans/ actions needs
to be in place.
While control objectives sets out what is acceptable, control plans are
strategies put in place to achieve these objectives while be; preventive
control plan, detective plan objectives or corrective control plan.
For a business to achieve a reasonable assurance that her control
objectives will be met, the above three control plans must be combined.
However, preventive control is the one that helps prevent fraud and errors
which is the subject matter of this article.
ACCAMAPS
A
= AUTHORIZATION/ APPROVAL.
Approval and Authorization must be obtained for every material project.
Materiality is a relative term that is used to describe the influence the
inclusion or exclusion of an item would have on a decision maker’s
opinion. This approval must always come from an authorized person.
C
= COMPARISON.
Figures should be compared. It could be on a; daily, weekly, monthly basis.
Actual performance is compared with budgeted performance. This can also
be called variance analysis.
C
= COMPUTER CONTROLS.
Computer controls is of two kinds. Physical access controls and logical
access controls. Physical access controls has to do with physical security
measures taken to protect the computer, for example, keeping the
computer in a locked room. Logical access controls are those measures
taken to limit the use of computer and its resources.
A
= ACCOUNTS RECONCILIATION
Stuffs like bank reconciliation, statement of financial position (balance
sheet) reconciliation, receivables reconciliation, payables reconciliation
and suppliers’ reconciliation can be performed on a fairly regular basis.
M
= MAINTAIN AND REVIEW CONTROL ACCOUNTS
A lot of frauds and errors can be prevented by simply maintaining a control
account that will be reviewed regularly.
A
= ARITHMETIC CHECKS
This will help uncover minor errors that would have otherwise not been
detected. Frauds also can be uncovered through this singular act. System
should be put in place to re-calculate figures for possible errors or outright
fraud.
P
= PHYSICAL CONTROLS
Can anybody from anywhere walk into a company’s premise and do
whatever he she likes? Controls must be in place to restrict this. Guards
should be at the gate to monitor those that come in and out of the
company. Smartcards can be used to restrict physical access to sensitive
areas of a company
S
= SEGREGATION OF DUTIES
Is a CRIME not to have proper segregation of duty in an organization.
Though, employees might collude to perpetrate fraud or crime but, the
presence of segregation of duty will at least give the perpetrators some
extra work to do. A person that raise invoice should not be the same
person that will dispatch and record sales.
The above tips cover both the general, application and systems and control plans
auditors and auditing
Auditing and auditors has recently been assigned a new role by the unseen hands of
business reality and challenges that is continually changing. Auditing and auditors
new role is necessitated by the...