Certified Public Accountants

The internal control system of your organization is a primary focal point for your financial audit. Your auditor is now required to obtain and document a more in-depth understanding of your organization, including internal control.

They will ask for detailed documentation of your internal controls. This means more than just showing them your accounting policies and procedures manual, they will need to examine the entire internal control framework such as the control environment as well as significant processes and controls related to financial reporting. Yes, this will also include your IT systems.

The initial development of control documentation will require a significant investment of time and effort of your staff.

You don’t have to do it alone.

Your organization can engage the expertise of Jacobson Jarvis consultants to guide and actually assist you through the process so that you’ll be ready when the auditors arrive. We can work with you at a much more detailed level than your auditors are able to, because of their independence requirements.

We will roll up our sleeves and work directly with your staff to:

• Understand internal control components and how they work together
• Identify and document your control environment
• Document your Information Technology systems
• Define your financial reporting processes and related risks
• Identify your control activities over financial reporting processes
• Document your system using a series of matrices, narratives, and flowcharts

In addition, we can prepare accounting staff job descriptions, as well as accounting manuals and procedures.

Let Jacobson Jarvis help you prepare for your next audit.

For more information or to schedule an internal control documentation process, contact Erin Welch, CPA, at
206-628-8990, or at erin@jjco.com.

 

     

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Most people think that internal control focuses only on fraud prevention and the safeguarding of assets, but they do so much more than that. Internal control is the entire system working to ensure that your organization achieves its goals.

Five components make up an internal control framework:
  1. Control environment
  2. Risk assessment
  3. Information & communication
  4. Monitoring
  5. Control activities

You will need to show auditors tangible evidence of how the first four components work to ensure reliable financial reporting.

You will also need to demonstrate which of your control activities ensure that the assertions behind each line on your financial statements are being met.