1. Control environment
2. Risk assessment
3. Information and communication
4. Control activities
4.2. Segregation of duties
4.3. Information processing controls
4.3.1. Computer general controls
4.3.2. Computer application controls
4.3.3. Controls over the financial reporting process
4.4. Physical controls
4.5. Performance reviews
4.6. Controls over management discretion in financial reporting 5. Monitoring
6. Antifraud programs and controls
Following is a list of controls prescribed by Waterfront, Inc.
a. Management has established a code of conduct that includes rules regarding conflicts of interest for purchasing agents.
b. Waterfront has established a disclosure committee to review the selection of new accounting policies.
c. Any computer program revision must be approved by user departments after testing the entire program with test data.
d. The managers of each of Waterfront’s manufacturing departments must review all expenditures charged to their responsibility center weekly.
e. The CEO, CFO, and controller review the financial consequences of business risks annually to ensure that controls are in place to address significant business risks.
f. Human resources focuses on ensuring that accounting personnel have adequate qualifications for work performed in billing and accounts receivable.
g. Security software limits access to programs and data files, and keeps a log of programs and files that have been accessed, which is then reviewed by the security manager daily.
h. A computer program prints a daily report of all shipments that have not yet been billed to customers. I. The controller reviews sales and collections bimonthly.
j. The computer compares the information on the sales invoice with underlying shipping information.
k. Customer billing complaints are directed to...