First, some thoughts:-
1. What are the critical work activities and processes that result in an output satisfying your customer needs on a consistent basis?
2. Discipline over the work activities that ensure success, including improvements will also be the source for the accounting records producing the management accounts evidencing the performance of the organisation in financial terms.
3. It is the 'management system' that directs work activities delivering the product to the customer. Parts of this system are the requirements for the accounting records and its ultimate financial statements. All are based on the principle of factual information.
4. Controls should be focused on the requirement to fulfil customer's satisfaction on a continuing basis. Management must be aware of 'tomorrow - the unknown', the path to its future.
From this overview, control considerations:-
1. To be directed, within prescribed boundaries, for the individual to produce output consistent with the purpose of the organisation and its customers resulting in mutual success and needs.
2. To effectively optimise the use of the organisations resources within the capability/competence of the workforce. Training and development programmes to support the organisation to continually improve.
3. From the principle of 'open involvement of all employee's (this includes management)' controls are focused on conformity to achieve success for all stakeholders.
Specifics.
For the price of $76 there is a comprehensive handbook written by David Hoyle which includes all the 'why's?', self assessment, the 262 requirements for a management system and 125 questions under the challenge of 'food for thought'. Don't be put off by its title "IS0 9000 Quality Systems Handbook" but note instead the following statement, "Using the standards as a framework for business improvement".
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Clifford Moggs CMA
Consultant
Reading
United Kingdom
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Original Message:
Sent: 10-15-2014 10:42 AM
From: Thomas Mastel
Subject: Evaluating Internal Controls in our Company - Where to start?
We are a small manufacturing company looking at our internal controls.
Is there a practical guide that we can start with? Something along the lines of a check list?
Thanks!
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Thomas Mastel CMA, CPA
Accountant
Ideal Aerosmith
Grand Forks ND
United States
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