Writing procedures is an exercise in controlling compliance costs. You’re trying to comply with customer expectations, management objectives, government regulations, and/or industry standards, making compliance expensive. Regardless of the reason for compliance, wouldn’t you want to write as few procedures as possible if you could still conform to the compliance mandate and keep your compliance costs to a minimum? How can cost of compliance be reduced?
An accounting manual defines the organizations accounting policies and procedures for the accounting staff. It defines everything from accounting standards, to procedures, rules, and guidelines. It can even describe how the accounting department is organized. It is primarily used for training and reference for new hires to the accounting department. So what is an accounting manual?
Continue reading What is an Accounting Manual?
Financial controls are documented in your finance processes, policies, and procedures manual template. SOX, in general, has generated a lot of discussion about internal controls even requiring financial policies and procedures. How are financial controls implemented?
In Sarbanes-Oxley compliance your SOX accounting policies and procedures have the same purpose as with ISO 9001 2015 procedures, to provide a foundation for control improvement. Sarbanes-Oxley is not a quality standard so why the need for improvement? Continue reading What are SOX Accounting Policies and Procedures?
According to the Institute of Internal Auditors (IIA), an effective internal control system helps ensure that our organizational processes are functioning properly, that our financial information is reliable, and that we’re in compliance with applicable regulations. Businesses primarily implement an internal control system to protect themselves from internal fraud and abuse, while many do so with regulatory or standards compliance in mind. Continue reading Why Is an Effective Internal Control System Crucial for Success?
If you qualify as a non-accelerated filer (i.e., your company’s public float is under $75 million), you’ll have to start complying with Section 404(b) of SOX, which requires company management and independent auditors to sign off on, or attest to, the effectiveness of your risk control framework or accounting policies and procedures for internal control. Are your processes protecting you from the risk of material misstatements (RMM)? Do you know how to control and reduce SOX compliance costs? Continue reading How to Reduce SOX Accounting Compliance Costs
The US Securities and Exchange Commission (SEC) started making rules for the utilization of the International Financial Reporting Standards (IFRS) – essentially GAAP and IFRS convergence. The SEC developed a “road map” for the use of financial statements. AICPA has been instrumental in paving the way for the adoption of IFRS. Continue reading How Will IFRS Convergence Impact You?