what are some GL and reporting activities?
1) updating GL
2) posting adj entries / adding o/b
3) prep FS
4) produce mgmt reports
general threats to GL accounting?
- inaccurate/invalid GL data which can result in misleading reports / errors in FS delivered to creditors or investors
- unauth disclosure of FS
- loss or destruction of data
threats during input?
inadvertently transposing digits when entering journal entries
threats during processing?
inaccurate adj entries
threats during output?
confidential financial results being accessed by unaut staff
threats during updating / posting adjusting entries?
inaccuracy, unauthorized J or adj entries
categories of controls needed to address GL errors?
- data entry processing integrity controls
- access controls
- recons and control reports (balances)
- audit trail creation and review
controls needed for adjusting journal entries?
- spreadsheet error protection controls, standard adj entries
what is a standard adj entries?
a file used for every adj of the same type of account. improves input accuracy and reduces risk of forgetting to make a recurring adj entry = ensures completeness)
controls needed for prepping FS?
- processing integrity ctrls
- packaged software
- audits
controls needed for preventing loss/unauth disclosure?
- user IDs to control access to GL and enforce proper duty segregation
- control over JE creation
- back up / disaster recovery procedures
what is XBRL?
extensive business reporting language
how does XBRL affect accountants?
- provides greater transparency
- does not require a change in existing standards
- eliminates the need to reenter data for diff users
- allows them to scrutinize data for int rep purposes
threats and controls for production of mgmt reports?
- poorly designed reports and graphs
- resp accounting, balanced scorecard, training on proper graph design
how does resp accounting help with performance evaluation?
produces a set of correlated reports that break down overall performance by specific subunits which can most directly control these activities
what does a balanced score card help with?
provides a multidimensional perspective of org perf
- reflects on the perspectives of the org (financial, customer, int. operations, innovation, learning)
- shows goals and targets
how does a BSC help with strategy?
- allows mgmt to examine the implementation of strategy
- provides a visual rep of strategy through maps
- makes strategy a continual process by providing a new framework
BSC goal areas?
- evaluate the extent to which IT meets org strategic needs
- satisfying needs of individual customers
- addressing innovation and learning
conditions when designing BSC?
- should help to manage enterprise and IT risk by incorporating risk goals
- should address the problem of ltd focus on perf
- top mgmt, accs, IT pros need to work together to develop BSC. forms multiple cause-and-effect relationships (improvement in one perspective should improve another, but not always = mgmt must re-evaluate)
- measure development in one area may be flawed and affect outcomes
