Introduction to Baseline Assessment of Internal Control System (BAICS)
BAICS Day 1- Sessions 1 and 2
PGIAM 2020: Internal Audit Key Processes/Activities
IC Framework(ICSPPS)
Monitoring
Ongoing
Separate
(IAS and other reviews)
What is Baseline Assessment of Internal Control System(BAICS)?
BAICS�
BAICS
BAICS is carried out by performing activities such as: administering internal control questionnaires/checklists; verifying results; using flowchart/ narrative notes; and conducting walkthrough and test of controls.
Objectives of BAICS
Get familiar with the organization’s operations
Identify and document the five (5) components of the internal control system of all programs and projects of the organization;
Review key processes on operations (OPS), support to operations (STO), and general administration and support (GAS);
Review controls on key processes of OPS, STO and GAS; and
Gather sufficient information on potential audit areas to be included in the strategic plan
Familiarization with the Organization’s Operations
Gathering and Analyzing information on the organization’s mandate,objectives, strategies, operating and support systems,relevant laws, rules and regulations and organizational and sectoral performance
Documenting the Five components of ICS
To obtain the understanding of the agency’s ICS in the context of the public sector, the Internal Auditors should be able to identify and document the five components of ICS
Identify and document the five components of ICS
Review of Key processes and Performance in the Operating System/Support System
Objective of the review is to document controls in key processes of operations within the organization that are critical to the achievement of the control objectives. Criteria for the selection of critical processes can include the ff:
1.A process with an output that is an input to a major final output
2. A process that makes up significant control procedures; and
3. A process where the financial value of inputs are high.
Review key control processes and performance of operating and support systems
Different tools and techniques to be utilized in gathering information
The critical operational/support processes may be documented and analyzed using flowcharts and walkthrough.
A narrative note shall be added to be more descriptive of the process
Gather sufficient information on potential audit areas to be included in the strategic plan
BAICS FLOW DIAGRAM (Revised PGIAM 2020)
Activities in the conduct of the Baseline assessment
Accomplishing AICD
Administering ICQ/ICC and verifying the results
Using flowchart/narrative notes
Conducting walkthrough
Accomplishing SCA/TOC
CCWS
-Control Universe
BAICS Procedures
ORGANIZATION LEVEL
Gather relevant data
1
Document Controls
2
Administer ICC
3
Validate results
4
Summarize Observations
5
Prepare IR/BAR
6
BAICS Procedures
OPERATION LEVEL
Gather relevant data
1
Document Controls
2
Review FC/NP
3
Walkthrough 1 trans.
4
Administer ICC
5
Validate “NOs”
6
BAICS Procedures
OPERATION LEVEL
TOC “YES”
7
Review Performance
8
Summarize Observations
9
Review Other Reports
10
Build Control Universe
11
Prepare IR/BAR
12
Tools and templates
Agency Internal Control Document
AICD
AICD
AICD
Interim Report
Gaps or control deficiencies/breakdowns found out after conducting a flowchart, preparing a narrative notes and conducting a walkthrough
These gaps should be subjected to root cause analysis and the preliminary recommendations should form part of the interim report.
Gaps or control deficiencies/breakdowns noted during the documentation of the components of the ICS and the key processes in the operating and support systems
Control Universe (CU)
Baseline Assessment Report (BAR)
Service with a Heart,
INTERNAL AUDIT OFFICE
Ground Floor Dome, PUP A. Mabini Campus, Anonas Street, Sta. Mesa, Manila Trunk Line: 5335-1787 loc. 326/388
Email: internalaudit@pup.edu.ph