Customer Reviews

Handbook of Internal Accounting Controls

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This book was written when audit firms still performed all of the detailed review and testing on most assignments. Although some of the specific methods have changed, i.e. performing an analytical review or walkthrough vs. detailed testing, the underlying theory is unchanged. In fact, to perform more of a summary review, having a firm understanding the core concepts is even more important. This Wallace's book is the classic go to on these concepts. This book is recommended for someone who is not only reviewing controls, but also someone directly responsible. An accounting manager, a controller, or CFO who just need some structured guidance to review their own ops would find this book useful. It does not have to be read straight through; it can be used as a reference manual. If you are focused on or redesigning a particular area, you can refer to only that part of the book. More specifically, it provides guidance on:-

-- How to design controls
-- How to evaluate existing controls
-- Whether a particular weakness is material
-- How to address, resolve and report areas for improvement

Controls are reviewed by area: income, expense, etc. It is a good tool that provides guidance for understanding the importance of an organization's internal controls.