Prepare Your Internal Control Flowchart For SSC Based On

Prepare your internal control flowchart for SSC based on the SSC narrative provided above

All Finance Department personnel at SSC headquarters and business unit locations, as well as controllership personnel, gain access to SSC’s accounting data by logging onto the SSC network or VPN using specific procedures. Application owners review access permissions quarterly, ensuring user roles align with job responsibilities. SSC headquarter personnel conduct reconciliations and monitor variances, communicating with business unit liaisons, who perform manual inspections of inventory receipts and review of liability accruals. Controller reviews account reconciliations before finalizing expenditure cycles, investigating discrepancies. This narrative guides the development of an internal control flowchart detailing login procedures, roles, and approval processes across departments.

Paper For Above instruction

Developing a comprehensive internal control flowchart for SSC necessitates a detailed understanding of the access, authorization, monitoring, and review procedures outlined in the provided narrative. A flowchart visually represents the sequence of controls, roles, and procedures involved in safeguarding SSC's financial data and ensuring process integrity. It encompasses login procedures, authorization reviews, monitoring activities, manual inspections, and approval processes, illustrating the flow of responsibilities among personnel at different organizational levels.

Login Procedures

The first step in SSC's internal control framework involves secure access to accounting data via network login protocols. Finance personnel at SSC headquarters and business units access the SSC network through authorized login procedures using their network IDs and passwords on company-issued computers when onsite. For remote access, personnel connect through the SSC Virtual Private Network (VPN), which requires authentication via network ID and password. These dual modes of secure access ensure that only authorized personnel can reach sensitive accounting data, establishing a primary control point against unauthorized access.

The flowchart begins with personnel initiating login, verifying credentials, and gaining access to the network or VPN. This process includes a review of user authorizations conducted quarterly by application owners to maintain appropriate access levels, which form a vital part of ongoing access control measures.

Application Owner Review and Authorization Control

Periodically, application owners review user access permissions based on current job responsibilities, removing unnecessary or inappropriate authorizations. Any changes in access, whether granting or revoking permissions, are documented and implemented through formal approval processes. This review serves as a periodic control to prevent privilege creep and ensure segregation of duties.

Monitoring Activities by SSC Headquarters Personnel

Once access is granted, SSC headquarter finance personnel perform ongoing monitoring activities. These include reconciling subledgers to the general ledger (GL) and comparing month-end account balances to budgeted amounts. Variances identified are communicated to the relevant business unit liaison, who investigates and addresses significant discrepancies. These procedures serve as control activities to prevent and detect errors or irregularities in financial reporting.

Roles of SSC Business Unit Personnel and Liaisons

The assigned business unit liaisons are responsible for manual inspections of inventory and liabilities. They manually review the EDI receiving report files to verify that inventory received before the reporting period is accurately recorded. Additionally, they review goods-received-but-not-invoiced reports to ensure liabilities are properly accrued. All findings must be reviewed and authorized by the business unit’s finance management before entries are uploaded to subledgers. This segregation of duties and review process serve as operational controls ensuring data accuracy and completeness.

Controller Review and Finalization

The controller at SSC reviews account reconciliations submitted by finance staff before financial data are finalized. Any discrepancies or reconciling items identified during the review are investigated and resolved, acting as a critical control to ensure data integrity prior to the expenditure cycle's closure.

Flowchart Summary

The control flowchart captures the linkage from initial login authentication, ongoing authorization reviews, activity monitoring by SSC headquarter personnel, manual inspections by business unit liaisons, and final reconciliation reviews by the controller. Each step incorporates authorization, review, and investigation components fundamental to maintaining a robust internal control environment for SSC's financial data management.

Conclusion

This control flowchart visually represents the layered approach SSC employs to ensure data security, accuracy, and accountability. Integrating secure login procedures, regular authorization reviews, ongoing monitoring, manual inspections, and managerial reviews forms a comprehensive internal control framework protecting SSC’s financial operations from fraud, errors, and unauthorized access.

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