Proper Documentation Methods for Internal Audit and Internal Controls Processes

Author: Lynn Fountain

Internal controls (IC) are critical to the effective functioning of all processes. The importance of proper and relevant documentation can be viewed as a burden. Strong, relevant documentation is critical to ensure organizations can adequately monitor, manage, and adjust their processes in line with business objectives. This requirement extends far beyond internal controls over financial reporting. Management must first establish appropriate responsibilities for IC. Personnel must have a strong understanding of the types and methods of IC and how they relate to their jobs. Controls should be well documented. Documentation methods must meet organizational needs and be sufficient for personnel to understand.

Publication Date: September 2024

Designed For
The course is useful to all individuals within a company who have responsibility for writing policies and procedures, documenting and evaluating processes and internal controls and testing processes.

Topics Covered

• Responsibilities for Internal Control
• Explore What to Document
• Documentation Types
• Flowcharts
• Narratives
• Policy and Procedures
• Internal Control Questionnaires
• Risk Control Matrices
• Establishing a Defined Documentation Process
• Steps to Document
• Flowchart Symbols
• Other Documentation Maturity Model
• Other Documentation Issue Tracker
• Other Documentation Testing Processes
• Other Documentation Internal Audit Formal Reports

Learning Objectives

• Describe how to evaluate the role responsibilities for internal control (IC)
• Determine what to document
• Identify documentation types
• Identify how to establish a defined documentation process
• Identify steps to sufficient documentation
• Identify relevant methods of flowcharting

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None