The manual is designed for the use of employees of various hierarchical levels in the organization. The manual provides specific guidance covering all phases of operational and the accounting function. The manual also deals with local reporting requirements and is thus specific to the client needs.
SOP is developed using risk Based assessment which has following benefits:
Studying the flow of each type of transaction errors and those relevant controls that provide reasonable assurance that errors are either prevented or detected and corrected.
Test of controls for determining their effectiveness i.e., whether controls are responsive to the inherent risk factors or not. We also consider the potential impact of inherent risk factors in control objective.
Considering the policies and procedures regarding authorization, safeguarding of transactions and their accountability. Adequate segregation of duties reduces the likelihood of errors (intentional or accidental) remaining undetected.
Manual includes: