Tools

The following tools were published on KnowledgeLeader this week:

Vendor Setup and Maintenance Policy

Establish the responsibilities and authorizations for completing and accurately maintaining the vendor master file (VMF) at a company. This tool highlights the procedures for new vendor setup through the new vendor information form and details the necessary documentation to ensure compliance and accurate reporting. Additionally, it emphasizes the importance of periodic maintenance of the VMF to mitigate risks such as fraud and non-compliance with regulations. 

Vendor Rebates Audit Work Program

Explore our Vendor Rebates Audit Work Program for a systematic approach to auditing vendor rebates and ensuring adherence to best practices. This program provides a structured approach to reviewing supporting documentation, ensuring that rebate receivables are properly recorded and calculated in accordance with vendor contract terms. The document outlines key audit objectives, such as assessing the adequacy of general reserves for vendor rebates and verifying inventory adjustments. It includes detailed project work steps, such as obtaining trial balances, reconciling vendor rebate schedules, and testing the clerical accuracy of calculations.

General Ledger Accounting (Close the Books): Other Liabilities RCM

A successful risk management strategy requires a strong internal control environment. The risk control matrix (RCM) format emphasizes that strong and risk-oriented internal control environments are often optimized with automated/manual controls, depending on the situation. An RCM provides an overview of different control objectives that organizations should take into consideration and the corresponding controls to safeguard the company against risks, which may arise if not checked timely. Once customized to an organization, this document can help the user in assessing each control. The control assessment can then also be summarized to develop an action plan.

Email Surveillance Audit Program

Utilize our Email Surveillance Audit Program to enhance data privacy within your organization. This program outlines critical procedures for planning, fieldwork and reporting, ensuring a structured approach to the audit process. The program helps assess the adequacy of policies related to email surveillance, including data privacy, security and compliance with organizational standards. It emphasizes reviewing roles and responsibilities, ensuring proper access controls, and verifying training on data privacy and code of conduct. This document can be used to examine processes for collecting, storing, analyzing and transmitting sensitive email data while maintaining traceability and security.

Financial Statement Preparation Policy

Our Financial Statement Preparation Policy outlines a framework for the preparation and reporting of financial statements within an organization. It includes detailed policies and procedures to ensure the quality and accuracy of financial disclosures made in quarterly and annual public filings with the U.S. Securities and Exchange Commission (SEC). This tool details the roles and responsibilities of various parties involved in the financial reporting process, including document administrators, financial reporting team members, subject-matter experts and legal staff. Each component within the management's discussion and analysis, as well as other notes, is prepared and analyzed by a financial reporting team member with input and validation from subject-matter experts.

Corporate Website Policy

Our Corporate Website Policy provides a detailed framework for managing corporate websites, ensuring that they reflect a consistent corporate image and adhere to privacy standards. It is divided into two samples outlining responsibilities for compliance, operational procedures for content development and security measures to safeguard user data. Sample 1 addresses the overall policy framework, highlighting the importance of a unified brand image and the need for content to be reviewed and approved by designated roles before publication. It underscores the role of the webmaster in validating and deploying website content and includes definitions related to corporate image and website management. Sample 2 delves into privacy policies, detailing how personal information is collected, used, and protected, as well as the use of cookies and conditions for disclosing personal information to third parties. This sample aims to build user trust through transparency and compliance with legal standards, ensuring that all personal data is handled securely and responsibly.

Data Governance and Data Quality Audit Report

Our Data Governance and Data Quality Audit Report examines the current state of data governance and quality practices within a healthcare company. This report highlights the importance of effective data governance in handling sensitive information received from various sources, including the Ministry of Health and patient surveys. It outlines the scope of the internal audit, which evaluates roles and responsibilities, documentation, data flow, monitoring and reporting mechanisms. The audit report assesses the adequacy of tools and controls implemented to ensure compliance with privacy regulations and data quality standards. The findings indicate that while the data governance framework is satisfactory, there are several areas for improvement, including the need for better process optimization, technology upgrades and enhanced team collaboration.

Financial Policies and Procedures Review Report

Evaluate and enhance the financial processes of your organization with the recommendations in this audit report sample. Through structured interviews with key personnel, organizations can gain insights into the division of duties and workflows between entities, while identifying pain points and management policy updates. This tool emphasizes compliance with regulatory standards, including Sarbanes-Oxley Act requirements, thereby ensuring a solid foundation for internal controls and governance. It includes a systematic approach to policy development, covering phases from drafting to approval, which helps in standardizing high-risk business processes.

Publications 

KnowledgeLeader has also published several publications this week.

The Future of Internal Audit: How to Master Adaptability

In this article, Audit Analytics explores the changing landscape of auditing, highlights essential adaptability skills and provides actionable strategies to help internal auditors stay ahead. As organizations face increasing risks, including cybersecurity threats and data privacy issues, the role of internal audit is more vital than ever in providing assurance and strategic insights. Auditors are now required to possess a diverse set of skills, including technological proficiency, critical thinking and effective communication, to navigate complex challenges and present actionable findings to a variety of stakeholders. The article emphasizes that adaptability is not merely a skill but a mindset that auditors must cultivate continuously.

Looking Beyond Compliance: The Long Game of Sustainability Management and Reporting

Learn why executives are unwilling to drop sustainability from their agenda, regardless of the political winds and regulatory pull-back. Despite the rollback of mandatory sustainability reporting regulations, such as the U.S. SEC’s climate rule and the EU’s Corporate Sustainability Reporting Directive, businesses continue to prioritize sustainability. This commitment is driven by the recognition of sustainability as a strategic asset that enhances resilience, reduces risks, and offers competitive advantages. A survey by Workiva reveals that a significant majority of executives find value in integrating financial and sustainability data, with many planning to continue climate disclosures independently of political shifts.

Protect Your Cloud Environment With CNAPP

The article emphasizes the critical need for adopting Cloud-Native Application Protection Platforms (CNAPP) in today's rapidly evolving cloud landscape. It highlights that traditional security tools often fall short due to their siloed and reactive nature, making organizations vulnerable to security breaches, particularly as evidenced by a notable incident in 2023 where a tech firm faced a significant breach due to misconfiguration. CNAPP offers a unified, proactive approach that integrates security throughout the application lifecycle, enhancing an organization's security posture and operational efficiency while future-proofing against emerging threats. Key benefits include continuous monitoring, automated compliance checks, and the ability to address vulnerabilities before they can be exploited.

Recommended Resources 

This list of recommended resources from the web may be of interest to you. Click each link to learn more. 

1. Gartner CFO Conference Reveals Shifting Tech Priorities for Finance
2. The Week in GRC: Amazon Proposals Voted Down as US AGM Season Hits Its Peak
3. Real-Life Ways Accountants Are Using AI