Finance- Internal Control processes

Question 1

Explain Proper Authorization / Authorization Limits

Answer 1

Is used to show approval limits for each job code in LDAP, placed an internal process in place to evaluate and review and control expenditures within the company.

• All documents which control the disbursement or the commitment of Schlumberger assets should require the signature of a responsible person before they are processed.
• The delegation of responsibilities and authorization limits begins at the top of the organization and flows down the management ladder to the field.

Question 2

What is iApprove (ALM)?

Answer 2

• Used to find approval limits for every employee in the company
• Based on job code
• Found on the hub

Question 3

What is FP40?

Answer 3

ICQ- Internal Control Questionnaire

Financial review with each district to test and ensure internal controls are in place, working and effective.

The ICQ is detailed and comprehensive, revised regularly, and issued for completion each year within a strict time-frame.

Go through over 1000 questions with operations at each base to test that internal controls.

Question 4

By who ICQ should be completed?

Answer 4

The ICQ should be completed by the Location Management, Finance, and staff involved in the business process.

Question 5

What does the district test include on FP40? (8)

Answer 5

District Tests:

1. Fixed Assets
2. Inventory/M&S
3. Revenue & Receivable
4. Procurement
5. Cash & Bank
6. E-Claims
7. Payroll
8. Ethics

Question 6

Explain Segregation of Duties (SOD)

Answer 6

• The concept of having more than one person to complete a task.
• An employee should not be assigned responsibilities and duties which would enable him to record and complete a transaction
• Custody, authorization, recording and execution responsibilities should be split between different employees.

Question 7

Examples of Segregation of Duties

Answer 7

• One person do the field ticket for the client, different person audit the ticket.
• One person deposit money to bank, different person record the transaction in the system.
• One person do a PO, different person review it and approve it.

Question 8

Client Entertainment Policy

Answer 8

• Employees and Contractors are not permitted to offer or accept business gifts or hospitality of more than $200.00 nominal value.
• Any exception to this must be authorized by the appropriate Area/Segment Controller