Scribd Logo
Upload

Welcome to Scribd!

  • 345 views

    Mnemonics

    Uploaded by

    grindmastah
    This document provides an overview of controls for managing people and systems, referred to as SPAMSOAP. It describes eight types of control levels: segregation of duties, physical control, authorization and approval, management controls using the ORIS framework, supervisory controls, organization as a control, arithmetical and accounting controls using CTRACT, and personnel control. It also describes preventative controls using ACCAMAPS to achieve objectives around reliable financial information, effective and efficient operations, protected assets, and adherence to laws and regulations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Mnemonics

    Uploaded by

    grindmastah
    345 views4 pages
    This document provides an overview of controls for managing people and systems, referred to as SPAMSOAP. It describes eight types of control levels: segregation of duties, physical control, authorization and approval, management controls using the ORIS framework, supervisory controls, organization as a control, arithmetical and accounting controls using CTRACT, and personnel control. It also describes preventative controls using ACCAMAPS to achieve objectives around reliable financial information, effective and efficient operations, protected assets, and adherence to laws and regulations.

    Original Title

    1271444617-mnemonics

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of controls for managing people and systems, referred to as SPAMSOAP. It describes eight types of control levels: segregation of duties, physical control, authorization and approval, management controls using the ORIS framework, supervisory controls, organization as a control, arithmetical and accounting controls using CTRACT, and personnel control. It also describes preventative controls using ACCAMAPS to achieve objectives around reliable financial information, effective and efficient operations, protected assets, and adherence to laws and regulations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    345 views4 pages

    Mnemonics

    Uploaded by

    grindmastah
    This document provides an overview of controls for managing people and systems, referred to as SPAMSOAP. It describes eight types of control levels: segregation of duties, physical control, authorization and approval, management controls using the ORIS framework, supervisory controls, organization as a control, arithmetical and accounting controls using CTRACT, and personnel control. It also describes preventative controls using ACCAMAPS to achieve objectives around reliable financial information, effective and efficient operations, protected assets, and adherence to laws and regulations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    control your management using SPAMSOAP

    Labels: managing people and systems


    spamsoap actually is a mnemonic word for eight types of control level.spamsoap can
    make our control in the office running smooth and clear.

    Segregation of duties
    each duties and task will be separate and should have different
    responsible running by different person.this will make each
    task will running effective and reduce the error in the
    task.function should be separated is RACES.

    RECORDING
    AUTHORISATION
    CUSTODY
    EXECUTION
    SYSTEM DEVELOPMENT AND DAILY OPERATIONS

    Physical control
    tight security and procedures is needed to control the access
    to assets and authorisation must be limited to authorised
    personnel.

    Authorisation and approval


    approval for every documents is needed and specified
    limitation to the authority.

    Management controls
    Five controls function which is ORIS

    Overall supervisory controls

    Review of management accounts and comparison with budgets


    Internal audit function
    Special review procedures

    Supervisory controls
    centralisation will help supervision across management and
    each transactions and recording can be supervise.
    Organisation as a control
    enterprises should have a planning,control and decision
    making in their organisation to defining and allocating
    responsibilities and identifying lines of reporting for all
    aspects of the enterprise's operations.

    specified in the delegation of the authority and responsibility


    should be clear.

    Arithmetical and accounting controls


    auditing job must be authorised. and correctly recorded and
    accurately processed.

    the controls include CTRACT

    Checking the arithmetical accuracy of the records


    The maintenance and checking of total
    Reconciliations
    Accounting for documents
    Control accounts
    Trial balance

    Personnel control
    person with the specific job must have specific responsibilities
    with capabilities appropriate.

    As far as fraud and error prevention are concerned, the establishment and
    maintenance of a good system of internal controls is and will still remain
    the best measure that can be taken to minimize or prevent fraud and error.
    Internal controls are those calculated conscious actions that an
    organization take so as be assured that reasonable assurance towards
    meeting her objectives are guaranteed, those objectives are to ensure that;
    Financial information (financial statements) are reliable,
    Operations are carried out in an effective and efficient manner,
    Companies assets are protected and
    Provisions of laws, rules and regulations are strictly adhered to
    In the bid to reduce or prevent fraud, companies set out control objectives
    that when achieved will mean a reduced level of prevalence of fraud.

    To achieve this, control goals/ objectives and control plans/ actions needs
    to be in place.

    While control objectives sets out what is acceptable, control plans are
    strategies put in place to achieve these objectives while be; preventive
    control plan, detective plan objectives or corrective control plan.

    For a business to achieve a reasonable assurance that her control


    objectives will be met, the above three control plans must be combined.
    However, preventive control is the one that helps prevent fraud and errors
    which is the subject matter of this article.

    ACCAMAPS

    A = AUTHORIZATION/ APPROVAL.
    Approval and Authorization must be obtained for every material project.
    Materiality is a relative term that is used to describe the influence the
    inclusion or exclusion of an item would have on a decision maker’s
    opinion. This approval must always come from an authorized person.

    C = COMPARISON.
    Figures should be compared. It could be on a; daily, weekly, monthly basis.
    Actual performance is compared with budgeted performance. This can also
    be called variance analysis.

    C = COMPUTER CONTROLS.
    Computer controls is of two kinds. Physical access controls and logical
    access controls. Physical access controls has to do with physical security
    measures taken to protect the computer, for example, keeping the
    computer in a locked room. Logical access controls are those measures
    taken to limit the use of computer and its resources.

    A = ACCOUNTS RECONCILIATION
    Stuffs like bank reconciliation, statement of financial position (balance
    sheet) reconciliation, receivables reconciliation, payables reconciliation
    and suppliers’ reconciliation can be performed on a fairly regular basis.
    M = MAINTAIN AND REVIEW CONTROL ACCOUNTS
    A lot of frauds and errors can be prevented by simply maintaining a control
    account that will be reviewed regularly.

    A = ARITHMETIC CHECKS
    This will help uncover minor errors that would have otherwise not been
    detected. Frauds also can be uncovered through this singular act. System
    should be put in place to re-calculate figures for possible errors or outright
    fraud.

    P = PHYSICAL CONTROLS
    Can anybody from anywhere walk into a company’s premise and do
    whatever he she likes? Controls must be in place to restrict this. Guards
    should be at the gate to monitor those that come in and out of the
    company. Smartcards can be used to restrict physical access to sensitive
    areas of a company

    S = SEGREGATION OF DUTIES
    Is a CRIME not to have proper segregation of duty in an organization.
    Though, employees might collude to perpetrate fraud or crime but, the
    presence of segregation of duty will at least give the perpetrators some
    extra work to do. A person that raise invoice should not be the same
    person that will dispatch and record sales.
    The above tips cover both the general, application and systems and control plans
    auditors and auditing
    Auditing and auditors has recently been assigned a new role by the unseen hands of
    business reality and challenges that is continually changing. Auditing and auditors
    new role is necessitated by the...

    You might also like