Cost Financial and Internal Control

Course Objectives

  • Apply controls in the accounting processes
  • Appraise functions and roles within the accounting department to maximize controls while optimizing performance
  • Implement segregation of duties and internal controls in the accounting department and related functions
  • Describe how to decrease the likelihood of fraud through the organization based on the reliability of the processes
  • Develop operational policies and procedures in accordance with internal control requirement
  • Design and maintain financial controls

Cost control

  • Budget as a control tool
  • The control process
  • Characteristics of an effective control system
  • Responsibility reporting
  • Variance analysis: identifying the components of variance
  • Variance analysis: taking the corrective action

Cost management decisions

  • Decision making process
  • Identifying relevant costs
  • Evaluating alternatives
  • Outsourcing decisions : make or buy
  • Add or drop product or business line
  • Replacing equipment
  • Special order pricing decisions

Financial controls

  • Controlling access to financial assets
  • Controls on financial reporting
  • Controls through budgets
  • Controls through management reporting
  • Implementing financial controls through policies and procedures

Purpose of internal controls

  • Compliance requirements through internal controls
  • Compliance requirements for oversight boards
  • Examples of compliance requirements
  • Other considerations: fraud prevention and customer satisfaction

Strategic need for analyzing and managing costs

  • Definition of cost management
  • Dimensions of cost management
  • Product costing systems: concepts and design issues
  • Cost behavior, types and hierarchy
  • Cost accumulation job shop
  • Batch production operations
  • Variable versus absorption costing

Implementing controls in business cycles

  • Controls in purchase and payment cycle
  • Controls in inventory and costing cycle
  • Controls in sales and collection cycle
  • Controls in fixed assets life cycle
  • The human element role in controls
  • Technology role in implementing controls
  • Segregation of duties in business cycles
  • Required reporting in business cycles
  • Approvals and authorization in business cycles
  • Risks to corporation in lack of control in the cycle
  • Controlling assets and inventory movements within the company
  • Preventing fraud through proper controls

Information System Controls

  • Safeguarding data
  • Access to communication systems

Course Methodology

The course is based on presentations and examples by the instructor.