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PINNACLE MANUFACTURING AUDIT - PART IV
CONTROL RISK MATRIX - ACQUISITIONS
TRANSACTION- Recorded Existing Recorded Recorded Acquisition Acquisition
RELATED AUDIT acquisitions acquisition acquisition acquisition transactions transactions
OBJECTIVES are for goods transactions transactions transactions are properly are recorded
and services are recorded are stated are properly classified on the
marized (posting
INTERNAL and summarization).
CONTROLS
1. Required use of P.O and
receiving report with check
of completeness C
2. Proper approval C C
3. Segregation of functions C
4. Cancellation of documents C
5. Prenumbering of documents
with accounting for
sequence C
6. Internal verification of
documents/records C C C C C
7. Use of chart of accounts C
PINNACLE MANUFACTURING AUDIT - PART IV
CONTROL RISK MATRIX - CASH DISBURSEMENTS
TRANSACTION- Recorded Existing Recorded Recorded cash Cash Cash
RELATED AUDIT cash cash cash disbursement disbursement disbursement
OBJECTIVES disbursements disbursement disbursement
transactions are
transactions transactions
are for goods transactions transactions properly are properly are recorded
and services are record- are stated included in the classified on the
actually ed (complete- at the cor- master file
(classification).
correct
received ness). rect amounts and are prop- dates
(occurrence). (accuracy). perly summar- (timing).
INTERNAL ized (posting
CONTROLS & summarization).
1. Segregation of functions C
signing of checks by
authorized person C
3. Prenumbered checks;
accounted for C
4. Use of chart of accounts C
by Treasurer) D D
2. Lack of internal verification
of documentation package by
cash disbursements clerk D D D
