ACCOUNTING PROCESS CONTROLS
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ACCOUNTING PROCESS CONTROLS ASSESSMENTS are conducted by DFRC to help Management and the Audit Committee assess controls surrounding the preparation of financial statements to meet Corporate governance standards.      

Policies and procedures, authority levels, variability review practices, segregation of duties, spreadsheet controls, and closing procedures are included in the scope of this engagement. Materiality calculations are also reviewed.

Special attention is paid to manual versus automated controls, proper identification of primary controls, and the existence of secondary and downstream controls.   Ethics and Whistleblower programs and the fraud detection framework are also assessed.

 

ENTITY LEVEL CONTROLS

Entity Level Control Assessments are conducted by DFRC to provide the Audit Committee and Executive Management an understanding of the adequacy of the control infrastructure.


A comprehensive review of the Design of controls systems is performed. Board and Management reports and metrics are then analyzed to provide an understanding of Execution of control measures.


The engagement is a top down approach to identify major control gaps and suggest corrective actions based on the company’s operating activities.  Responsibilities and authorities, objectives, and reporting related to major programs are evaluated.  The potential impact of layered risks based upon these evaluations is then determined.

 

REGULATORY & COMPLIANCE

Regulatory and Compliance Support engagements are conducted by DFRC to help Management and the Audit Committee assess the adequacy of the compliance program and help prepare for regulatory examinations.        

The Compliance Committee’s charter, scope, authorities, responsibilities, documentation, and approach to institutionalize compliance with regulatory directives and consumer law issuances are included in the scope of the engagement.

Management’s processes to test compliance, identify root causes of deficiencies, corrective actions taken, and processes to promote  individual accountability are also evaluated.

 

INTERNAL AUDIT ASSESSMENTS

Internal Audit Assessments are conducted by DFRC to help the Audit Committee assess the adequacy of the Internal Audit program.

 
Internal Audit policies and procedures, audit methodology, risk based scope, frequency, workpapers, repeat exceptions, follow-up activities, experience level, and reports are included in the scope of the engagement. Interviews of the Audit Committee members, Internal Audit team, and Senior Management are also conducted.          

External Audit and Regulatory findings are reviewed and root causes are identified.  Special attention is paid to the budget and clout of the internal audit program to properly identify risk issues while promoting compliance to company policies.

 

AUDIT COMMITTEE GOVERNANCE

Audit Committee Corporate Governance Assessments are conducted by DFRC to help Audit Committees perform their roles properly and effectively.  There is heightened attention on the role of the Audit Committee in this environment.

The Audit Committee charter, minutes and packages of information are reviewed. Audit Committee members are interviewed to discuss the corporate governance and risk management practices of the company.

Management reports, financial statements, and other metrics are reviewed along with interviews of senior management to evaluate the adequacy of information received by the Audit Committee