How to Use this Manual xiii Preface xvii Before Getting Started xix Getting Started with the Program xxiii Developing the Table of Contents xxvii Self Assessment xxxi Program 1 A01 Program Mandate 3 A02 Overview-Getting Started: Presentation 9 A03a Create, Revise, Issue Policies and Procedures 21 A03b Template-Name of Document 26 A04 Request to Deviate from Policies and Procedures 28 A05 Rescind Policies and Procedures 32 Policies and Procedures 35 B01 Account Reconciliation 37 B02 Accounting for Compensated Absences 41 B03 Accounting for Goodwill, Patents, Trademarks, and Other Intangible Assets 44 B04 Accounting for Mergers and Acquisitions 47 B05 Accounting for Post-Employment Benefits 50 B06 Accounting for Restructuring and Reorganization 53 B07 Accounting for Sales Compensation: Expense, Accrual, Reconciliation 57 B08 Accounts Payable: Request for Payment to Third Party Vendors 62 B09 Accounts Receivable: Allowance for Doubtful Accounts 68 B10 Accounts Receivable: Third-Party Trade and Customer-Credit, Collection, and Cash Applications 72 B11 Accruals 81 B12 Accounting and Audit-Related Complaints 86 B13 Authorization: Delegation, SubDelegation of Authority 90 B14 Bank Reconciliation 100 B15 Business Combinations, Consolidation and Foreign Entity Reporting 103 B16 Business Licenses 106 B17 Cash and Banking 109 B18 Communication with Financial Community 116 B19 Escheat, Abandoned Property, Unclaimed Checks: U.S., Canada, and Where Local Regulations Require 119 B20 Finance Code of Ethical Conduct 123 B21 Key Financial Indicators 126 B22 Financial Planning and Analysis 131 B23 Property, Plant and Equipment: Fixed Assets, Long-Lived Assets, Tangible Assets 134 B24 Foreign Currency Risk Management 153 B25 Funding and Financing Risk Management 156 B26 Hiring and Use of External Auditors 158 B27 Income Tax Preparation and Reporting 164 B28 Insurance and Risk Management 169 B29 Intercompany Transactions 174 B30 Inventory 180 B31 Investment and Marketable Securities 186 B32 Journal Entries: Routine, Non-Routine, and Estimates 189 B33 Capital, Operating Leases, and Real Estate Rental Property 195 B34 Letter of Representation, Quarterly Financial Sub Certification Process 202 B35 Payroll and Salary Expense 208 B36 Petty Cash 212 B37 Physical Counts and Evaluation for Inventory, Property, Plant and Equipment 216 B38 Prepaid Assets/Expenses 219 B39 Revenue Recognition 222 B40 Source and Use of Exchange Rates 228 B41a Travel, Entertainment, and Expense 231 B41b Travel, Entertainment, and Expense Manual 235 Bonus Policies and Procedures 251 C01 External Communications and Public Relations 253 C02 Material Nonpublic Information and Insider Trading 261 C03 Procurement 265 C04 Records Information Management 270 Index 287
Rose Hightower, Accountant, MSc, has been the owner of IDEAL Consulting Solutions International, LLC for ten years, consulting in implementation of internal control and policy and procedure programs for large companies. Bringing over twenty years of experience from IBM and serving as finance manager, her program contains practical lessons and simple solutions for any size company. She is known as "The Policy Guru" and offers advice and counsel to clients from her Web site, idealpolicy.com, and through auditnet.org.
"The author provides an excellent framework for organizations to use in establishing and updating policies and procedures. This book is an excellent resource that auditors can use to steer management to as an example of a structured approach to policy and procedure development." (Auditnet.org, June 2008)