Key Process Controls – Credit

Properly evaluating, setting, and monitoring customer credit limits can be important to companies for issuing credit and ultimately, collecting cash receipts. A clear understanding of the key controls in a process can benefit internal auditors, business managers, and others who want to understand, improve, or audit the process. This course allows participants to become familiar with, or brush up on, internal control definitions and concepts. The course also covers the credit process in detail. Participants will learn the key credit process steps under both a manual and a computerized system. While relatively few companies may still have a purely manual system covering a manual system will help an accountant, auditor, or business manager to better understand what the key documents received, created, and sent from the process are.

Learning Objectives
  • Recognize the definition of internal control along with internal control concepts including the continuum of internal controls for businesses, approaches for adding internal controls, and balancing costs of evolving internal control systems.
  • Properly identify risk categories including internal and external risk in addition to inherent and residual risk.
  • Recognize the typical fraud risk factors as well as the components of the Fraud Triangle and Fraud Diamond.
  • Recognize the principles to keep in mind when constructing internal controls as well as the limitations or conceptual failings of internal controls.
  • Identify internal control categories including preventative or detective controls and manual or automated controls.
  • Recognize the primary steps required to construct a system of internal controls as well as COSOs Internal Control-Integrated Framework and the Sarbanes Oxley Act.
  • Properly identify the three primary credit activities.
  • Properly identify key documents in the credit process.
  • Recognize the process-specific controls related to the credit process.
  • Properly identify additional credit process considerations, periodic monitoring analysis and other procedures, and specific credit policy considerations.