Internal control system is an important part of the internal management of the institution, is a series of internal management system established within the institution in order to achieve organizational goals, to ensure the safety and integrity of the property and materials, financial information is true, legal, the economic activities of the compliance, legal and effectiveness, the use of internal due to the division of labor different interlinked, mutual constraints of the mechanism. Evaluation of the internal control system is an important part of the audit of the economic responsibility of the leading cadres of the cause, through the evaluation, to the cause of the unit and the competent authorities to strengthen the management and the promotion of the control measures of the proposal.
From the point of view of audit evaluation, the internal control system of institutions, generally divided into two major parts of internal accounting control and internal management control. The main contents of the internal accounting control system are authorization and approval control, financial income and expenditure plan control, job separation control, accounting records control, physical control and other aspects. The main contents of the internal management system include management organization setup, annual work plan, organization and personnel control and other aspects. The evaluation of the internal control system is to review and evaluate whether it is sound and effective. Generally divided into soundness evaluation and conformity evaluation of two steps, the method is basically the same as other industries.
(2) Utility assets and liabilities audit.
Asset audit of institutions, the main content is still to review the cash, bank deposits, receivables and prepayments, inventory, foreign investment, fixed assets, intangible assets, the authenticity of the legitimacy of the audit of liabilities are also mainly including borrowed funds, accounts payable and other payables, a variety of payables, etc. Audit. Its methods, procedures and general business audit is similar.
(3) the audit of net assets of institutions.
The net assets of an institution is the difference between the fund assets minus the fund liabilities. This includes utility funds, fixed funds, restricted funds, and balances.
1) Utility Fund Audit.
Career funds are unrestricted net assets owned by the utility, mainly including rolled-over balances and other funds. Recorded in accordance with the actual number of current period. The audit of the utility fund mainly includes the following:
Review the legality of the source of the utility fund. The main review of the source of the enterprise fund of the enterprise fund is whether the rolling balance of funds and general investment funds, there is no other funds should not be transferred to the enterprise fund of other funds recorded in the section.
Review the authenticity of the closing balance of the Utility Fund. The main business fund general ledger, ledger, bookkeeping vouchers, original vouchers, to see if they are consistent; and then the general ledger of the business fund with the figures reflected on the balance sheet, to see if they are consistent with each other, there is no inconsistency.
Review the correctness of the Utility Fund's bookkeeping.
②Fixed Fund Audit.
Fixed funds are funds occupied by fixed assets. Fixed funds should be recorded in accordance with the actual amount incurred. Audit of fixed funds, mainly including the following:
Review of the legality of the source of fixed funds. Mainly review the relevant original documents to see whether the source of the fixed fund of the institution for its purchase, self-made, transfer, finance lease, accept donations and inventory of fixed assets formed by the fund, there is no should not be credited to the fixed fund and other purposes of the fund into the account.
Review the authenticity of the fixed fund account balance. Fixed fund accounts and bookkeeping vouchers, original documents to see if they are consistent; and then the fixed fund accounts and the balance sheet reflected in the figures to see if they are consistent. Review the fixed fund accounts for correctness.③ Audit of earmarked funds.
Specialized funds are funds that are extracted and set up for special purposes by the institutions according to the regulations, mainly including repair and purchase funds, employee welfare funds, medical funds and other funds. Dedicated funds should be increased by the amount of the current period of the actual withdrawal of the transfer of accounts; decrease should be based on the amount of the current period of the actual expenditure of accounts. Audit of the special fund, including the following:
Review of the source of the special fund compliance. The main review of the original documents of the special fund, to see whether the repair and purchase of the fund of the institution according to a certain percentage of business income and operating income and other provisions of the withdrawal and transfer; employee welfare fund according to a certain percentage of the balance of the withdrawal and other provisions of the withdrawal and transfer; medical fund according to the local financial departments of the public medical expenditure standards from the income; other sources of the foundation is legal.
Review the authenticity of the account balance at the end of the earmarked fund. Earmarked fund general ledger, ledger and bookkeeping vouchers, original vouchers to see if they are consistent; and then the general ledger of the earmarked fund and balance sheet figures to see if they are consistent with the inconsistency of the situation.
Review of the legality of the use of earmarked funds. The main review of the repair and purchase fund in the repair costs and equipment acquisition costs of 50%, whether all for the maintenance and purchase of fixed assets of the institution; employee welfare fund is used for all the collective welfare facilities, collective welfare treatment of employees; medical fund is used for all the medical expenses of the employees.
Review the correctness of the accounting treatment of specialized funds.
(4) other content audit.
In addition to the above business funds, fixed funds, special funds audit, there are business balances, operating balances, balance distribution and other content of the audit, the specific subjects are: business income, financial subsidy income, subsidized income from higher levels, contributions from affiliated units, operating income, operating expenditures, sales taxes and other subjects, in the specific audit, the review should be the authenticity of the account balances at the end of the accounts, the account handling correctness, etc., the method is the same as that of the audit, and the audit should be carried out by the same method. The method is the same as mentioned above. Review the various forensic records of each account as well as the related accounts, the related business, income accounts, should also review whether its recognition is in line with the requirements of the accounting standards from the institutions. Whether its acquisition is legal; expenditure accounts, should also review its expenditure is legal, compliance; whether its collection is in line with the requirements of the financial accounting system of institutions.