12500 - Other Audit Guidance - Internal Control Matrix for Audit of Material Management and Accounting

INTERNAL CONTROL MATRIX FOR AUDIT OF MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM CONTROLS Version No. 4.2 June 2011 Control Objectives Example Control Activities Audit Procedures 1. SYSTEM DESCRIPTION MMAS standard 1 requires the contractor to provide Establish and maintain descriptions of the major manual a. Obtain the contractor’s self assessment of its system an adequate system description including policies, and automated systems that comprise the MMAS. description; including written policies, procedures, procedures, and operating instructions compliant and operating instructions for its MMAS(s). with FAR/CAS criteria as interpreted by this Document deficiencies found by the contractor and guidance for all elements of affected cost. the corrective actions taken/anticipated. b. Document in the working papers your evaluation of the system description including policies, procedures, and operating instructions including: (1) Whether they provide sufficient information to allow one to obtain a thorough understanding of the way the system is intended to operate. (2) Potential noncompliances with the standards and your evaluation of the contractor’s initial response to these potential noncompliances. (3) Your conclusions on the adequacy of the contractor’s policies and procedures, system descriptions, and action plan(s) for keeping them current. c. When the system description is considered adequate, determine and document any additional ...