ICS Period-End Process - Standard Control Matrix

Accounting closing - Navision MATRIX

Information Auto or
Contribution to financial Preventive or Key
Reference Processing statement assertions Manual Detective
# Process Sub-process Control Objectives Risk Description of Control Activities Objectives control Control Frequency Responsible Documentation
Number Y/N

C A V R A C CO E/O PD RO V M A P D
1
2
3
ICS Period-End Process - Standard Control Matrix

Inventory Forward Book Valuation MATRIX

Information Auto or
Contribution to financial Preventive or Key
Reference Processing statement assertions Manual Detective
# Process Sub-process Control Objectives Risk Description of Control Activities Objectives control Control Frequency Responsible Documentation
Number Y/N

C A V R A C CO E/O PD RO V M A P D

Every day the Excel Position (covering inventory, open sales, open purchases, futures and options
Inventory & Ensure transaction) prepared by Trade is reviewed by Head of Commodity. and signed in Dayly Activity
Forward Open Accuracy/Completen Inaccurate or
1 Sales/Purchase 2.1.1 Reports In case of any discrepancy, investigation will be held to see where the differences lie and C A V R A C CO E/O RO V M D Y Monthly Trader Position reconcilation signed-off
Book ess of positions and Incomplete adjustments will be done accordingly. The reconcilation ToCMS is done as of the las day of the
Valuation Contracts transactions transactions
month by the Trader.

Inventory & Every month, the inventory responsable reconciles and signs off the inventory quantity reported by
Forward Inventory Ensure completeness Incomplete inventory Warehouse and CMS inventory
2 of inventory in 2.1.2 the warehouses (own & 3rd party) to CMS System Report. The manager branch signs of as reviewer. C A V A C CO E/O PD RO M P Y Monthly Traffic
Book Reconcilation quantity Discrepancies are investigated and resolved. reconciliation signed-off
Valuation warehouse & system

Inventory & Ensure completeness

Forward Inventory of inventory in Incomplete inventory Monthly, the Cotton Controller reconciles the inventory recorded in CMS (reconcilated vs Cotton reconcilation inventory
3 warehouse & 2.1.1. warehouses) Navision/Financial management. Discrepancies are investigated and resolved. C A V A C CO E/O RO M P Y Monthly Controller
Book Reconcilation quantity signed-off
Valuation system& Financial
Management

Inventory & Ensure accurate At month-end, Accounting reconciles and obtains from the trader the broker New Edge
4 Forward Futures, Options, valuation of Inaccurate valuation 2.1.4 statements signed off , showing the futures, options and OTC Detail in the Forward Book Excel to C A V A C CO PD RO V M D Y Monthly Accounting Broker statement reconciliation
Book OTC transactions calculation ensure that all trades are properly recorded. signed-off
Valuation
At month-end, the Head Trader approves and signs off "Market Differentials" by quality and
"Costing" by location used for valuation which are prepared by Trade Department.
Inventory &
Forward Open Ensure accurate Inaccurate valuation Signed (physical or
5 Sales/Purchase valuation of 2.1.1 A A V M P Y Monthly Head Trader electronically) Market
Book calculation
Valuation Contracts transactions Differential List and Costing

Cotton Controller reviews and signs off the Inventory and Forward Book valuation based on a
Inventory & Ensure accuracy & Forward Book Control Checklist, which includes validation of: a) Quantities, b)Contract prices &
Forward Inventory & completeness of Inventory and Forward Forward Book Control Checklist
6 Forward Book Book may not be 2.1.4 market prices, c)Costings (fixed and Variable costs), spread differential, d) Intercompany Balances C A V A C CO V M D Y Monthly Accounting
Book Inventory and Reconciliations, e) Forex/Futures/Options, f) Summary Sheet, g) Quarterly Checks on Delivery signed-off
Valuation Reconcilation Forward Book accurate or complete
Period, h) wash-outs, etc.

Inventory & At month-end, the valuations obtained for the Inventory & Forward Book are consolidated into a
Forward Inventory & Ensure accurate Inaccurate valuation Forward Book Excel Template
7 Forward Book valuation of 2.1.1 standard Forward Book Template by the Cotton Controller and reviewed and signed off for the V V M D Y Monthly Accounting
Book calculation head Trader. The Summary sheet is reviewed manually to avoid linked errors. Signed-off
Valuation Reconcilation transactions

Inventory & Inventory & Forward Book

Forward Forward Book Ensure accuracy of Adjustments may not All Inventory & Forward Book valuation adjustments are reviewed, approved and signed off by
8 2.1.6 Corporative Controller prior to posting. A V A V M P Y Monthly Accounting adjustments with approval
Book Accounting Forward Book be authorized signature
Valuation

Cotton Director reviews and signs off the Forward Book Control Checklist, which includes
Inventory & Ensure accuracy & validation of: a) Quantities, b)Contract prices & market prices, c)Costings (fixed and Variable costs),
Forward Inventory & completeness of Inventory and Forward Signed Basic Forward Book
9 Forward Book Book may not be 2.1.7 spread differential, d) Intercompany Balances Reconciliations, e) Forex/Futures/Options, f) A V A CO V M D Y Monthly UB Director
Book Inventory and Summary Sheet, g) Quarterly Checks on Delivery Period, h) wash-outs, etc. Checklist
Valuation Reconcilation Forward Book accurate or complete

Unauthorized
Inventory & individuals may have Cotton
10 Forward System Access Ensure proper access to System and 2.1.1 Cotton Controller or authorized person reviews active access usernames to assure updated R M P Y On-going controller or Signed List of Authorized Access
Book system access be able to modify user lists is correct. Authorized Controls
Valuation information person

Access to systems (Navision, CMS, or local system) is restricted to authorized individuals and the
Inventory & appropriate segregation of duties exists (ability to input, change, post transactions delete).
Forward Ensure proper Unauthorized Finance Approved System access list and
11 System Access segregation of duties transaction and no 2.1.1 Appropriate individuals are formally granted access to systems using the ticketing system with the R M P Y On-going Manager/Coun roles or through Ticketing
Book and system access segregation of duties approval of Controller and/or Director. try Manager System
Valuation
 Inventory & Ensure Every day the Excel Position (covering inventory, open sales, open purchases, futures and
12 Forward Position Accuracy/Completen Inaccurate or 2..1.1
options transaction) prepared by Trade are reconciled to CMS . The position sheet is reviewed
C A V A C E/O RO M D Y Daily Trade
Reporte de actividades Diarias
Book ess of positions and Incomplete by Commodity Director. In case of any discrepancy, investigation will be held to see where the firmada por el Director de
Valuation transactions transactions differences lie and adjustments will be done accordingly. The Daily Activities report is signed Algodó n
by the Director every day.
ICS Period-End Process - Standard Control Matrix

Accounting closing - Navision MATRIX

Information Auto or
Contribution to financial Preventive or Key
Reference Processing statement assertions Manual Detective
# Process Sub-process Control Objectives Risk Description of Control Activities Objectives control Control Frequency Responsible Documentation
Number Y/N

C A V R A C CO E/O PD RO V M A P D

Validar que todas las

CIERRE DE CIERRE cuentas por pagar del No registrar gastos en el El Analista de Cuentas por Pagar en conjunto con el Contralor de la compañía se encargan de Cuentas por
1 periodo tengan su periodo contable 1.1.1 validar que ningún pago quede pendiente de registrar y revisa que cada uno sea cumplido en C A V A C RO V M D Y Monthly pagar / Check-list del cierre mensual
MES MENSUAL afectación contable en correspondiente tiempo y forma en base a las políticas de Compras. Contralor firmado
resultados.

Eliminar
CIERRE DE CIERRE mensualmente las Dejar anticipos y gastos Jefe de
2 cuentas de anticipos sin comprobar y/o 1.1.2 El Jefe de Contabilidad emite un reporte de pagos anticipados a la Contraloría y el área de Compras. C A V A C RO V M D Y Monthly Reporte mensual de anticipos y
Contabilidad / depuració n de cuenta firmada.
MES MENSUAL con su respectivo acreditar. Contralor
comprobante fiscal.

Las cuentas de TMS

CIERRE DE CIERRE Depuración de las afectan directamente a El Jefe de Contabilidad revisa que las cuentas contables de TMS queden sin saldos y enviarlas a Archivo en Excel de Estados
3 Bancos, lo que podría 1.1.3 C A V A C RO V M A D Y Monthly Jefe de
Financieros aprobado
MES MENSUAL cuentas de TMS ocasionar que queden
Contraloría. Contabilidad mensualmente
saldos irreales en éstos.

Papel de trabajo
CIERRE DE CIERRE impreso amarrado Error en la valuación de El Jefe de Contabilidad valida el registro del Activo Biológico contra el papel de trabajo de la Jefe de Archivo en Excel de Estados
5 1.1.5 C A V A C RO V M D Y Monthly Financieros aprobado
MES MENSUAL contra Estados Activos Biológicos. integración del mismo. Contabilidad mensualmente
Financieros

CIERRE DE CIERRE Reporte de Ingresos Depósitos a la compañía Archivo en Excel de los depó sitos
6 cruzado contra pendientes de 1.1.7 Contraloría valida reporte de ventas Vs. Reporte de ingresos propios de la operación C A V A C V M P D Y Monthly Contralor realizados a la compañ ía,
MES MENSUAL estados de cuenta. identificar. cruzado vs Estados de Cuenta.

Conciliaciones
CIERRE DE CIERRE bancarias firmadas por No revelar los flujos de 1.1.9 Las conciliaciones deberán ir firmadas por la jefatura de contabilidad y contraloría
Jefe de Cedula de provision de gastos y
15 efectivos disponibles al C A V A C PD M P D Y Monthly Contabilidad / reserva de cuentas incobrables
MES MENSUAL el Jefe de Contabilidad cierre. Contralor
y el Contralor

Estados Financieros
impresos y firmados No evaluar la Estados Financieros en Excel ,
7
CIERRE DE CIERRE por el Jefe de razonabilidad de las 1.1.11 El Contralor valida saldos y firma de autorización la balanza de comprobación mensual C A V A C V M P D Y Monthly Contralor liberados a las á reas financieras
MES MENSUAL Contabilidad y el cifras de cada socio / Intercambio de
Contralor correos con la informació n

CIERRE DE CIERRE Cruces de Inventarios Mala valuación de El jefe de Contabilidad realizará el cotejo de los saldos de Inventarios en Navision contra los saldos Papel de trabajo en Excel de
9 en Navision vs 1.1.6 C A V A C E V M P D Y Monthly Jefe de Inventarios con las afectaciones
MES MENSUAL Inventarios Físicos inventarios y papeles de trabajo y kardex de cada una de las fincas. Contabilidad a la contabilidad

Elaborar papeles de
trabajo de
CIERRE DE CIERRE amortización de Omitir la correcta 1.1.4
El Jefe de Contabilidad valida que las provisiones de intereses devengados coincidan contra la tabla Jefe de Papel de trabajo en Excel de
10 C A V A C V M P D Y Monthly
MES MENSUAL Intereses y validar la provisión de Intereses de amortizaciones. Contabilidad cá lculo de intereses aprobado
información con la
contraparte.
ICS Sales&Receivable Process - Standard Control Matrix

Sales and Receivable Accounts

# Process Sub-process Control Objectives Risk Reference
Number
1 SALES AND SALES ENSURE THAT ALL GENERATE AN 2.1.1
ACCOUTS ORDERS INVOICES INVOICE AND A
RECEIVABL AND PRODUCTION IS PRODUCTION ORDER
ES PROPERLY NO REQUEST FOR A
REGISTERED IN THE CUSTOMER
SYSTEM

2 SALES AND SALES ENSURE SALE GENERATE AN 2.1.2,2.1.4,2.1.5

ACCOUTS CONFIRMATION UNAUTHORIZED
RECEIVABL MUST BE CONTRACT
ES AUTHIRIZED BY
HEAD TRADE

3 SALES AND SALES ENSURE THAT THE GENERATE AN 2.1.3

ACCOUTS CUSTOMER CARD IS INCORRECT
RECEIVABL PROPERLY CUSTOMER CARD
ES REGISTERED

2 SALES AND SALES ENSURE THAT THE MAKE A CONTRACT 2.1.2

ACCOUTS CONTRACT IS WITHOUT
RECEIVABL PROPERLY REVISED ACCEPTANCE OF
ES AGREED, SIGNED PRICES, TERMS AND
AND THE NATIONAL CONDITIONS
BRANCH protected.
ONLY TRADE OFFERS
CUSTOMERS CAN
RECEIVE

3 SALES AND SALES ENSURE PRODUCTION 2.1.3

ACCOUTS PRODUCTION SCHEDULING ORDER
RECEIVABL ORDERS MUST BE WITHOUT A
ES CREATED WITH THE CONTRACT SENT BY
CONTARCT SENT BY TRADE
TRADE

4 SALES AND SALES ENSURE THAT CAN ISSUE BILLING 2.1.4

ACCOUTS ONLY BE BILL (INCOME) WITHOUT
RECEIVABL TAKING THE ENSURING THAT HAVE
ES SHIPPING OUTPUT STORAGE
DOCUMENTS AND SHIPPING
DOCUMENTS

5 SALES AND SALES ENSURE THAT ALL DO NOT REGISTER IN 2.1.5

ACCOUTS THE CUSTOMER ACCOUNTING
RECEIVABL INVOICES ARE CUSTOMER INVOICE
ES PROPERLY OR ENERED IN THE
REGISTERED IN THE RECORDS IN
GL. IN THE PERIOD SUBSEQUENT DATES
THAT THEY APPLY
6 Sales and SALES ENSURE DELIVERY DELAY IN SENDING 2.1.6
Accounts TO CUSTOMERS OF BILLS TO CLIENTS
Receivables ALL BILLS PENDING
PAY

7 SALES AND ACCOUNTS ENSURE AND MATURITY DATES 2.2.1

ACCOUTS RECEIVABLES VALIDATE THE NON BASED ON
RECEIVABL MATURITY OF DELIVERY DATES
ES CONTRACTS

8 SALES AND ACCOUNTS VALIDATE THE DO NOT IDENTIFY 2.2.2

ACCOUTS RECEIVABLES CUSTOMER SUPPORT DEPOSITS IN BANKS
RECEIVABL PAYMENT 0NCE THE ACCOUNTS
ES DEPOSITS ARE IN
THE BANKS

9 SALES AND ACCOUNTS ENSURE THAT DO NOT REGISTERED 2.2.3

ACCOUTS RECEIVABLES ACCOUNTING COUNT BANK DEPOSTS IN THE
RECEIVABL WITH THE PAYMENT CUSTOMER ACCOUNTS
ES SUPPORT OF THE
CUSTOMER
DEPOSITS FOR THE
CORRECT RECORD

10 SALES AND ACCOUNTS ENSURE THAT THE INCORRECT BALANCES 2.2.4

ACCOUTS RECEIVABLES CUSTOMER HAVE IN ACCOUNTS
RECEIVABL BEEN INFORMED OF RECEIVABLES
ES THE PENDING
PAYMENTS
 Description of Control Activities Information Contribution
C Processing
A V R A
THE TRADER IS RESPONSIBLE TO PREPARE SALES CONTRACTS WITH A CUSTOMER ORDER, C A V A
THE HEAD TRADER DAILY REVIEW CONTRACTS WITH EXPORT CUSTOMERS, TRADER MAKES
NATIONAL CONTRACTS WITH DOMESTIC CUSTOMERS. ONLY TRADE CAN RECEIVE
CUSTOMER'S OFFERS

SALES DEPARTMENT CONFIRMS THE SALE BY E-MAIL AUTHORIZED BY THE HEAD TRADER C A V A

Formato solicitud de Alta firmado por el área de ventas y solicitud de elaboración de

contrato por correo con formato de confirmación de venta.

THE TRADER, COLLECTED BY SIGNATURES FOR EACH CLIENT AGREEMENT AND ARCHIVES C A V A
FOLDER IN A SEPARATE AGREEMENT BY CONTRACT THIS MAKE SURE THAT CUSTOMER
HAVE ACCEPTED PRICES AND TERMS. ONLY TRADE HAVE RIGHTS IN SYSTEM TO CREATE OR
MODIFY TERMS AND CONDITIONS PRIOR CUSTOMER AGREEMENT

THE RESPONSIBLE FOR SCHEDULING PRODUCTION ORDERS IS THE ONLY IN CHARGE TO C A V A

PROGRAM PRODUCTION ORDERS (MAQUILAS) TAKING THE CONTRACTS THAT PREVIOUSLY
TRADE HAD SEND

THE RESPONSIBLE TO BILLING ONLY CAN CREATE EACH INVOICE ONCE HE HAVE THE C A V R A
SHIPPING DOCUMENTS , SHIPPING WEIGHT, WAREHOUSE ORDER SALE WITH LOT'S FOR
EACH CONTRACT, THIS AREA IS THE ONLY RESPONSIBLE TO LINK INVOICES WITH LOTS

THE ACCOUNTAT DAILY MAKES A RECONCILIATION OF THE INVOICE REGISTERED IN CMS C A V R A

WITH THE CCOUNTING RECORDS IN GL, ONLY THE ACCOUNTANT HAVE RIGHTS TO
REGISTER IN GL
THE RESPONSIBLE OF BILLING DAILY ENSURE SEND THE INVOICES TO THE CUSTOMERS C A V R A

THE COLLECTION ANALYST CONTROL IN DETAIL THE DELIVERY DATES OF THE INVOICES C A V R A
WITH THE RECEPTION OF THE CUSTOMER FOR THE CONTROL OF MATURITY EXPORT
INVOICES ; THIS CONTROL IS IN EXCELL SPEAD-SHEETS

TREASURY ANALYST DAILY SEND AN EMAIL DETAILING ALL DEPOSITS RECEIVED IN BANKS C A V R A
OF THE PREVIOUS DAY; IN ORDER TO THE ANALYSTS COLLECTION MAY IDENTIFY THE
PAYMENTS, TRASEURY IS THE ONLY TO HAVE ACCESS TO OPERATE OR GET BANKS
MOVEMENTS

DAILY THE COLLECTION ANALYST SEND TO THE ACCOUNTANT THE IDENTIFIED BANK C A V R A
DEPOSITS FOR EACH CUSTOMER IN ORDER TO THE ACCOUNTAT REGISTER THE PAYMENTS
PROPELY

THE COLLECTION ANALYST MONTHLY SEND TO THE CUSTOMERS THE CUSTOMES C A V R A

STATEMENT BALANCES IN ORDER TO CONFIRM THE AGREEMENT WITH THE INVOICES
PENDING TO PAY
Contribution to financial Auto or Preventive or Key Frequency Responsible
statement
C CO E/O assertions
PD RO V Manual
M A Detective
P D Control
Y/N
C CO E/O RO M P Y FOR EACH TRADER
EVENT

C CO E/O RO M P Y FOR EACH SALES

EVENT

C CO E/O RO M P Y FOR EACH TRADER

EVENT

C CO E/O RO M P Y FOR EACH LOGISTIC

EVENT

C CO E/O M P Y FOR EACH COMMERCIAL

EVENT

C CO E/O RO M P Y DAILY ACCOUNTING

C CO E/O M P Y For each COMMERCIAL
event

C CO E/O RO M P Y FOR EACH COLLECTING

EVENT ANALYST

C CO E/O RO M P Y DAILY TREASURY

C CO E/O M p Y DAILY COLLECTING

ANALYST

C CO E/O RO M D Y MONTHLY COLLECTING

ANALYST
 MATRIX
Documentation

SALES CONTRACT BASED ON

THE CUSTOMER REQUEST

SALE CONFIRMATION
AUTHORIZED BY THE HEAD
TRADER

CONTACT SALES SIGNED BY

THE CUSTOMER

IDENTIFY PRODUCTION ORDER

BY CONTRACT SALES

OUTPUT WAREHOUSE WITH

SHIPPING DOCUMENT

RECONCILIATION OF INVOICES
IN CMS VS GL
SEND TO THE CUSTOMER BILL
DAILY MAIL

FILE IN EXCELL WIT THE

DELIVERY DATES

DAILY MAIL WITH ALL THE

BANK DEPOSITS

DAILY MAIL IDENTIFIED A

ACCOUNTING BANK DEPOSITS

BALANCE STATEMENT
CONFIRMATION BY THE
CUSTOMER