Process Number Prepared By Date

Alpha Corporation PRO1202Y Internal Audit 20XX

Process Name Region Reviewed By Page
FA: Capital Expenditures N/A FA Business Process Owners 1 of 13

CONTROLS OVERVIEW:
START 02A
FA01A ‐ Fixed asset acquisitions, including the method of
02B financing, valuation in accordance with capitalization policy,
Management depreciation method, and determination of useful life are
meets quarterly to review authorized in accordance with Delegation of Authority policies,
CIP activity based on review of Capital Acquisition Requisition (CAR) forms.

Senior Management FA02A ‐ Management periodically reviews Construction in

updates and Process, approves construction activities and costs, and reviews
communicates capital the timely placement of assets in service.
asset/expenditure
policy on an annual or FA02B ‐ All new CIP projects are subject to evaluation to
determine whether the asset is within the Company’s fixed
as needed basis End asset capitalization policy.

Senior Management
meets annually to review
and approve annual capital
expenditure budgets

Senior Management
ensures approved capital
budget is communicated as
appropriate

01A

Requisitioner
requisitions capital
additions as agreed upon
 Process Number Prepared By Date
Alpha Corporation PRO1204Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Mass and Manual Additions N/A FA Business Process Owners 2 of 13

Start Enter asset

Yes CONTROLS OVERVIEW:
info into
Quick addition? Assets System A FA01.A ‐ Fixed asset acquisitions, including the
via Quick method of financing, valuation in accordance
Additions with capitalization policy, depreciation method,
Will new asset No
be performed by See “Lease” No and determination of useful life are authorized in
Fixed Asset accordance with Delegation of Authority policies,
direct flowchart Yes based on review of Capital Acquisition
acquisition? Accountant
Enter detail Merging mass Requisition (CAR) forms.
Merge mass
asset info into addition lines?
Yes addition lines to FA01.C ‐ ERP automatically calculates monthly
Assets System create single asset depreciation based on input parameters (useful
via Additions No life, depreciation method, etc.).
Payables
Submit Mass FA01.D ‐ Fixed asset useful lives in ERP are
automatically determined based on the Asset
Additions Create Category assigned to the asset.
Program Fixed Asset Yes Fixed Asset
Accountant Accountant
Verify “Mass Splitting mass
01.A Split a mass addition
Additions Create” addition lines?
Requester into more than one
Complete asset program completed line
addition form or successfully No
CAR

Fixed Asset Accountant

Requester Mass Additions Review Mass Additions
Obtain approval Create Report No Invoice Merge Report to
from manager for Adding a mass verify mass additions were
merged into a single asset
purchase addition line to an and Mass Additions Split
existing asset? Report to review mass
additions created by
Yes splitting multi unit mass
additions
Fixed Asset Accountant
1. Review addition form for Fixed Asset Account
completeness and accuracy Review report/
2.Identify how asset should review mass A
be created in ERP
additions to become
assets
Fixed Asset
No Accountant
Manual Add a mass addition
addition? line to an existing
Fixed Asset asset
Yes Accountant
Update mass
01.C/ additions to proper
Fixed Asset
01.D CIP Number
Acct
Open ADI and A
create asset
addition
 Process Number Prepared By Date
Alpha Corporation PRO1204Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Mass and Manual Additions N/A FA Business Process Owners 3 of 13

Fixed Asset Account

Review delete
report

Fixed Asset
Accountant
Query all assets with
a status of “On Asset Additions
Hold” Report

Fixed Asset
Accountant
Fixed Asset
1) Post Mass
Accountant
Additions
Receive Asset
2) Verify that assets
Addition Request
posted properly
form

No
Need to clean up
mass addition Is additional Return form to
Yes
lines? information requester to
needed? complete further
Yes
No
Fixed Asset Acct
If necessary, change
queue name to
File all paperwork
“delete” for
unwanted mass
addition lines

Submit Delete End

Mass Additions
Program

Mass Additions
Delete Report
 Process Number Prepared By Date
Alpha Corporation PRO1208Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Leased and Rented assets N/A FA Business Process Owners 4 of 13

Start
CONTROLS OVERVIEW:

FA03.A: New lease agreements and amendments/renewals of

existing leases are authorized and reviewed in accordance with
Identify a need for a Delegation of Authority policies. For all leases greater than $2k,
new investment or management evaluates the lease agreement to determine
appropriate capital vs. operating lease classification: 1) does the
replacement of
lease life exceed 75% of total asset life, 2) is there transfer of
asset ownership to lessee at end of lease term, 3) is there an option
to purchase asset at bargain price at end of lease term, 4) does
the PV of lease payments exceed 90% of asset FMV.

No FA03.B: Quarterly, the fixed asset accountant will review the

Will the new rent and lease expense activity to identify potential new leases
investment/ See “Additions” and/or potential amendments to leases.
asset be fulfilled flowchart
by lease ?

Yes

Requester 03.A
Forward Request or
Business Line
potential lease
Manager Operating Lease
agreement to the
Approves all new Recognize rental
Business Line
lease arrangements expense on a
Manager
straight line basis
over life of the lease
03.A
Fixed Asset
Fixed Asset Yes Accountant
Accountant Perform lease Lease Analysis Accounting Manager
1) Obtain approval analysis to approves
of lease agreement determine operating
2) Is lease value vs. capital lease
>$2000USD and
estimated useful life
Capital Lease
is > 12 months?
Record as an asset
Fixed Asset 03.B and an obligation at
No Accountant the beginning of the
1) Quarterly, lease term
download all GL
activity and
No analysis
supporting detail. Corporate Finance
required‐ book as Legal/Treasury
Analyze to identify Compiles all lease/
operational lease Reviews and
any new leases that rented asset data End
were added approves all new
for inclusion in
lease arrangements
Alpha’s 10K report
 Process Number Prepared By Date
Alpha Corporation PRO1210Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Inventory N/A FA Business Process Owners 5 of 13

Start Fixed Asset B

Accountant
04 Analyze and 04 PROCESS AND CONTROLS OVERVIEW:
Fixed Asset
reconcile any Fixed Asset
Fixed Asset Accountant Accountant
differences Accountant KEY CONTROLS
1) Create a master list of Obtain additional
depts by site to be Communicate physical inventory FA 04: All fixed assets are counted, by department, every three
audited during the year differences to info and final years. Any count differences are investigated and documented,
2) Ensure that all fixed Dept Manager approval from dept and any adjustments and/or disposals are approved by the
assets are inventoried Yes manager Controller's team.
Differences
over a 3 year period B
found?
Obtain additional
physical asset
No inventory Fixed Asset
Fixed Asset information from Accountant
Accountant department Record adjustment
Fixed Asset
Notify department manager to individual fixed
Accountant
that an asset assets in Asset
File and save D
inventory will be System Application
physical asset
performed and send paperwork
the appropriate Correct FA
excel file Application data
to reconcile
Fixed Asset with physical
Accountant inventory data Assets System
Fixed Asset Ensure that income
Accountant/Analyst/ statement
Dept Manager accounting in GL
1) Complete review of Report is Fixed Asset
physical fixed assets and appropriate Accountant
identify requisite asset Identify all assets Fixed Asset
information A
not accounted for Accountant
during physical Review resulting
inventory accounting for
Fixed Asset difference between
Complete System physical inventory
appropriate Application and recorded assets
paperwork and in ERP
forward to Fixed No
Missing assets
Asset Accountant D
identified?

Fixed Asset Yes D

Accountant
Close physical Fixed Asset 04
No Accountant
inventory and
Is info received Communicate
A archive physical assets in Assets
complete and inventory data System not
accurate?
identified during
physical inventory
Yes to department
manager
 Process Number Prepared By Date
Alpha Corporation PRO1212Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Capitalise CIP Assets N/A FA Business Process Owners 6 of 13

Start
Fixed Asset Accountant CONTROLS OVERVIEW:
Monthly, prepare and
distribute manual CIP FA 02A: Management periodically reviews Construction in Process, approves
construction activities and costs, and reviews the timely placement of assets in
Rollforward to
service.
Accounting Manager
All assets are placed FA 02B: All new CIP projects are subject to evaluation to determine whether the
asset is within the Company’s fixed asset capitalization policy.
into the CIP account

02.A
02.B Fixed Asset Accountant/
Project Owner
Accounting Manager
1) Review costs and
Participate in Long Lived Asset
timing of project
Review Meeting
end date
2) Provide
Capitalization
Authorization to
Fixed Assets
Accountant/Analyst

Fixed Asset
Accountant
Transfer CIP
costs to Fixed Asset
appropriate Accountant
fixed asset Monthly, reviews all
account in FA charges to the CIP
application account for accuracy

Yes Reverse
Were
inappropriately
inappropriate
capitalized
assets
assets in FA
capitalized?
application

No

Fixed Asset Accountant

File required paperwork and
documentation in month end
closing binder
 Process Number Prepared By Date
Alpha Corporation PRO1214Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Adjustment N/A FA Business Process Owners 7 of 13

START

CONTROLS OVERVIEW
Requester FA Accountant/ Analyst
[1] Identify & communicate [9] File any applicable GCC 03 – IT general controls review of logical access rights
need for change to asset info paperwork within the file
to the Fixed Assets containing monthly
Accountant/Analyst. adjustments, transfers &
retirements & in the asset
folder. .

FA Accountant/ Analyst
END
[2] Review documentation to
support fixed asset
maintenance activity.

FA Accountant/ Analyst
[3] Determine type of change
to be made.

GCC
FA Accountant/ Analyst 03
[4/5/6/7] Make necessary
changes (Cost, life,
depreciation method or
classification).

FA Accountant/ Analyst
[8] File fixed asset
maintenance documentation
in asset folder.
 Process Number Prepared By Date
Alpha Corporation PRO1216Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Transfer N/A FA Business Process Owners 8 of 13

START

CONTROLS OVERVIEW

GCC 03 – IT general controls review of logical access rights

Dept Mgt No
FA Accountant/Analyst
[1] Obtain appropriate Transferring a
[8] Generate mass transfer
approval for fixed asset single asset?
preview report.
transfer.
Yes

Dept Mgt
[2] Forward Asset movement FA Accountant/Analyst FA Accountant/Analyst
form & supporting [6] Perform single asset [9] Run mass transfer.
documentation, if any, to the transfer.
Fixed Assets Accountant/
Analyst.

FA Accountant/Analyst
[7] Review Asset transfer FA Accountant/Analyst
FA Accountant/ Analyst reconciliation report to ensure [10] Review mass transfer
[3] Obtain & review asset completeness & accuracy of execution report.
transfer request infor. transfer.

FA Accountant/ Analyst
FA Accountant/ Analyst [11] File any applicable
[4) Complete G/L coding for paperwork within the file
asset transfer. containing monthly
adjustments, transfers &
retirements & in the asset
folder.

FA Accountant/ Analyst
[5) Process asset transfer
within system.
END

GCC
03

ERP
 Process Number Prepared By Date
Alpha Corporation PRO1218Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Disposal/Retirement N/A FA Business Process Owners 9 of 13

START

CONTROLS OVERVIEW:
Requester No
FA Accountant/Analyst FA01.B ‐ Fixed asset disposals (e.g., sales, retirements, write‐offs) are
[1] Obtain & complete Disposing a
[6] Process mass disposal or authorized in accordance with Delegation of Authority policies, based on
disposal request single asset? review of the Authorization of Disposal of Capital Assets form.
retirement.
documentation.
Yes GCC 03 – IT general controls review of logical access rights

Requester FA Accountant/Analyst
FA Accountant/Analyst
[2] Forward Asset disposal [7] Calculate Gains/Losses to
[5] Dispose fixed asset in
request documentation to change status of transaction
Assets System.
Fixed Assets Accountant for from Pending to Processed.
review & processing.

01.B
FA Accountant/ Analyst FA Accountant/Analyst
[3] Review asset disposal [8] Run & review asset
request documentation for retirement report.
completeness & accuracy.

FA Accountant/ Analyst
FA Accountant/ Analyst [9] File any applicable
[4) Obtain accounting info in paperwork within the file
Assets System for fixed asset containing monthly
disposal. adjustments, transfers &
retirements & in the asset
folder.

GCC
03
Assets
System
END
 Process Number Prepared By Date
Alpha Corporation PRO1220Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Reinstatement N/A FA Business Process Owners 10 of 13

START

CONTROLS OVERVIEW:
FA Accountant/ Analyst FA Accountant/Analyst
FA Accountant/Analyst
[1] Obtain & review initial [5] Reinstate fixed asset GCC 03 – IT general controls review of logical access rights
[9] Run Reinstated Asset
asset disposal data for asset pending in Assets System by
Report.
to be reinstated. selecting ‘undo’.

FA Accountant/Analyst
FA Accountant/ Analyst FA Accountant/Analyst [10] Review Reinstated Assets
[2] Locate retired asset to be [6] Dispose fixed asset in Report to ensure
reinstated in Assets System. Assets System. reinstatement was accurately
& completely performed.

GCC
03
Assets
No
System FA Accountant/ Analyst
(7) Need to undo
[11] File any applicable
reinstatement?
paperwork within the file
containing monthly
Yes adjustments, transfers &
retirements & in the asset
No folder.
Retirement had a
status of processed? FA Accountant/Analyst
[8] Query reinstatement
transaction in retirements
Yes window & choose undo FA Accountant/ Analyst
reinstatement button. [12] Run and review Asset
reinstatement report to verify
completeness & accuracy on a
FA Accountant/Analyst monthly basis.
[3] Reinstate fixed asset
already processed in Asset
System by electing ‘reinstate’.

END

FA Accountant/Analyst
[4] Run calculate Gains &
Losses program.
 Process Number Prepared By Date
Alpha Corporation PRO1222Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Period Close N/A FA Business Process Owners 11 of 13

START

FA Accountant/Analyst FA Accountant/Analyst FA Accountant/ Analyst CONTROLS OVERVIEW:

FA Accountant/ Analyst [7/8] Verify completeness & [12] Run depreciation & close [18] Generate and review
[1] Run final mass additions accuracy of all FA period in Assets System. post‐depreciation reports. FA01.C: ERP automatically calculates monthly depreciation
program from Payables maintenance transactions based on input parameters (useful life, depreciation method,
System or Projects System. processed and adjust as etc.).
necessary.
FA 01.D: Fixed asset useful lives in ERP are automatically
determined based on the Asset Category assigned to the asset.
GCC
03 01.C GCC 03 – IT general controls review of logical access rights
Assets No
Payables 01.D Systems
System/ FA Accountant/Analyst
[9] Run depreciation without Tax books maintained?
Projects
closing period.

Accounting Mgr Yes

[13/14] Once depreciation
FA Accountant/ Analyst
FA Accountant/Analyst period is closed run Create
[2] Run mass additions create FA Accountant/ Analyst
[10] Review Journal Entry Accounting Program.
report. [19] Initiate mass copy from
reserve ledger report for
closed corporate reporting
reasonableness.
book to each open tax book.

Accounting Mgr
FA Accountant/ Analyst [15] Review depreciation
[3] Review Report for any No expense for reasonableness.
assets with a Queue status of FA Accountant/ Analyst
Adjustments necessary [20] Calculate current period
‘New’ or ‘On Hold’. Modify
after initial pre‐ depreciation for each tax
appropriate fields & change
depreciation run? book.
queue status to ‘Post’

Yes Accounting Mgr

[16] Verify that journal is
correct. Corporate Tax
FA Accountant/ Analyst [21] Review Tax Reserve
[4] Post additional modified FA Accountant/Analyst ledger report.
assets. [11] Make necessary
adjustments in Assets System.

Accounting Mgr
[17] Verify Assets System Period
journal entries are correct. Close 2
FA Accountant/ Analyst
[5/6] Verify that in service CIP Assets
assets have been capitalised Systems
and adjust CIP as necessary.
 Process Number Prepared By Date
Alpha Corporation PRO1222Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Period Close N/A FA Business Process Owners 12 of 13

Period
Close

FA Accountant/ Analyst
[22] Run final depreciation for
Tax Book, AMT book, State
Book & Close Period.

FA Accountant/ Analyst
[23] File documentation.

Final depreciation,
AMT book and state
book.

END
 Process Number Prepared By Date
Alpha Corporation PRO1224Y Internal Audit 20XX
Process Name Region Reviewed By Page
FA: Period End Reconciliation N/A FA Business Process Owners 13 of 13

START

ELCC
210 CONTROLS OVERVIEW:
FA Accountant/ Analyst FA Accountant/Analyst
FA Accountant/Analyst
[1/2] Generate relevant Asset [11] File fixed assets ELCC 210: GAAP and SEC disclosure checklists and instructions are used in
[7] Reconcile Construction in preparing and reviewing all draft financial‐statement disclosures for
System reports and GL Report reconciliations & supporting
Process accounts. completeness and consistency, and to ensure that all relevant financial
reports. documents.
information is disclosed in accordance with generally accepted accounting
principles.

Assets
System and FA Accountant/Analyst
GL [8] Prepare necessary asset END
adjustments in Assets System.

FA Accountant/Analyst
[3] Reconcile depreciation Assets
expense. System

FA Accountant/Analyst
FA Accountant/Analyst
[9] Forward reconciliation
[4] Reconcile accumulated
forms & all supporting
depreciation balances.
documentation to Accounting
Mgr for review.

FA Accountant/Analyst Accounting Mgr

(5] Reconcile asset cost [10] Quarterly review &
balances. confirm fixed assets &
accumulated depreciation
reconciliations were
performed accurately,
completely & timely.

FA Accountant/Analyst
(6] Reconcile fixed asset
balance sheet accounts to GL.