opencode-knowledge-work 0.0.0-stage → 0.1.0

package/content/finance/skills/finance-journal-entry-prep/SKILL.md

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+---
+name: journal-entry-prep
+description: Prepare journal entries with proper debits, credits, and supporting documentation for month-end close. Use when booking accruals, prepaid amortization, fixed asset depreciation, payroll entries, revenue recognition, or any manual journal entry.
+user-invocable: false
+---
+
+# Journal Entry Preparation
+
+**Important**: This skill assists with journal entry workflows but does not provide financial advice. All entries should be reviewed by qualified financial professionals before posting.
+
+Best practices, standard entry types, documentation requirements, and review workflows for journal entry preparation.
+
+## Standard Accrual Types and Their Entries
+
+### Accounts Payable Accruals
+
+Accrue for goods or services received but not yet invoiced at period end.
+
+**Typical entry:**
+- Debit: Expense account (or capitalize if asset-qualifying)
+- Credit: Accrued liabilities
+
+**Sources for calculation:**
+- Open purchase orders with confirmed receipts
+- Contracts with services rendered but unbilled
+- Recurring vendor arrangements (utilities, subscriptions, professional services)
+- Employee expense reports submitted but not yet processed
+
+**Key considerations:**
+- Reverse in the following period (auto-reversal recommended)
+- Use consistent estimation methodology period over period
+- Document basis for estimates (PO amount, contract terms, historical run-rate)
+- Track actual vs accrual to refine future estimates
+
+### Fixed Asset Depreciation
+
+Book periodic depreciation expense for tangible and intangible assets.
+
+**Typical entry:**
+- Debit: Depreciation/amortization expense (by department or cost center)
+- Credit: Accumulated depreciation/amortization
+
+**Depreciation methods:**
+- **Straight-line:** (Cost - Salvage) / Useful life — most common for financial reporting
+- **Declining balance:** Accelerated method applying fixed rate to net book value
+- **Units of production:** Based on actual usage or output vs total expected
+
+**Key considerations:**
+- Run depreciation from the fixed asset register or schedule
+- Verify new additions are set up with correct useful life and method
+- Check for disposals or impairments requiring write-off
+- Ensure consistency between book and tax depreciation tracking
+
+### Prepaid Expense Amortization
+
+Amortize prepaid expenses over their benefit period.
+
+**Typical entry:**
+- Debit: Expense account (insurance, software, rent, etc.)
+- Credit: Prepaid expense
+
+**Common prepaid categories:**
+- Insurance premiums (typically 12-month policies)
+- Software licenses and subscriptions
+- Prepaid rent (if applicable under lease terms)
+- Prepaid maintenance contracts
+- Conference and event deposits
+
+**Key considerations:**
+- Maintain an amortization schedule with start/end dates and monthly amounts
+- Review for any prepaid items that should be fully expensed (immaterial amounts)
+- Check for cancelled or terminated contracts requiring accelerated amortization
+- Verify new prepaids are added to the schedule promptly
+
+### Payroll Accruals
+
+Accrue compensation and related costs for the period.
+
+**Typical entries:**
+
+*Salary accrual (for pay periods not aligned with month-end):*
+- Debit: Salary expense (by department)
+- Credit: Accrued payroll
+
+*Bonus accrual:*
+- Debit: Bonus expense (by department)
+- Credit: Accrued bonus
+
+*Benefits accrual:*
+- Debit: Benefits expense
+- Credit: Accrued benefits
+
+*Payroll tax accrual:*
+- Debit: Payroll tax expense
+- Credit: Accrued payroll taxes
+
+**Key considerations:**
+- Calculate salary accrual based on working days in the period vs pay period
+- Bonus accruals should reflect plan terms (target amounts, performance metrics, payout timing)
+- Include employer-side taxes and benefits (FICA, FUTA, health, 401k match)
+- Track PTO/vacation accrual liability if required by policy or jurisdiction
+
+### Revenue Recognition
+
+Recognize revenue based on performance obligations and delivery.
+
+**Typical entries:**
+
+*Recognize previously deferred revenue:*
+- Debit: Deferred revenue
+- Credit: Revenue
+
+*Recognize revenue with new receivable:*
+- Debit: Accounts receivable
+- Credit: Revenue
+
+*Defer revenue received in advance:*
+- Debit: Cash / Accounts receivable
+- Credit: Deferred revenue
+
+**Key considerations:**
+- Follow ASC 606 five-step framework for contracts with customers
+- Identify distinct performance obligations in each contract
+- Determine transaction price (including variable consideration)
+- Allocate transaction price to performance obligations
+- Recognize revenue as/when performance obligations are satisfied
+- Maintain contract-level detail for audit support
+
+## Supporting Documentation Requirements
+
+Every journal entry should have:
+
+1. **Entry description/memo:** Clear, specific description of what the entry records and why
+2. **Calculation support:** How amounts were derived (formula, schedule, source data reference)
+3. **Source documents:** Reference to the underlying transactions or events (PO numbers, invoice numbers, contract references, payroll register)
+4. **Period:** The accounting period the entry applies to
+5. **Preparer identification:** Who prepared the entry and when
+6. **Approval:** Evidence of review and approval per the authorization matrix
+7. **Reversal indicator:** Whether the entry auto-reverses and the reversal date
+
+## Review and Approval Workflows
+
+### Typical Approval Matrix
+
+| Entry Type | Amount Threshold | Approver |
+|-----------|-----------------|----------|
+| Standard recurring | Any amount | Accounting manager |
+| Non-recurring / manual | < $50K | Accounting manager |
+| Non-recurring / manual | $50K - $250K | Controller |
+| Non-recurring / manual | > $250K | CFO / VP Finance |
+| Top-side / consolidation | Any amount | Controller or above |
+| Out-of-period adjustments | Any amount | Controller or above |
+
+*Note: Thresholds should be set based on your organization's materiality and risk tolerance.*
+
+### Review Checklist
+
+Before approving a journal entry, the reviewer should verify:
+
+- [ ] Debits equal credits (entry is balanced)
+- [ ] Correct accounting period (not posting to a closed period)
+- [ ] Account codes exist and are appropriate for the transaction
+- [ ] Amounts are mathematically accurate and supported by calculations
+- [ ] Description is clear, specific, and sufficient for audit purposes
+- [ ] Department/cost center/project coding is correct
+- [ ] Treatment is consistent with prior periods and accounting policies
+- [ ] Auto-reversal is set appropriately (accruals should reverse)
+- [ ] Supporting documentation is complete and referenced
+- [ ] Entry amount is within the preparer's authority level
+- [ ] No duplicate of an existing entry
+- [ ] Unusual or large amounts are explained and justified
+
+## Common Errors to Check For
+
+1. **Unbalanced entries:** Debits do not equal credits (system should prevent, but check manual entries)
+2. **Wrong period:** Entry posted to an incorrect or already-closed period
+3. **Wrong sign:** Debit entered as credit or vice versa
+4. **Duplicate entries:** Same transaction recorded twice (check for duplicates before posting)
+5. **Wrong account:** Entry posted to incorrect GL account (especially similar account codes)
+6. **Missing reversal:** Accrual entry not set to auto-reverse, causing double-counting
+7. **Stale accruals:** Recurring accruals not updated for changed circumstances
+8. **Round-number estimates:** Suspiciously round amounts that may not reflect actual calculations
+9. **Incorrect FX rates:** Foreign currency entries using wrong exchange rate or date
+10. **Missing intercompany elimination:** Entries between entities without corresponding elimination
+11. **Capitalization errors:** Expenses that should be capitalized, or capitalized items that should be expensed
+12. **Cut-off errors:** Transactions recorded in the wrong period based on delivery or service date

package/content/finance/skills/finance-reconciliation/SKILL.md

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+---
+name: reconciliation
+description: Reconcile accounts by comparing GL balances to subledgers, bank statements, or third-party data. Use when performing bank reconciliations, GL-to-subledger recs, intercompany reconciliations, or identifying and categorizing reconciling items.
+argument-hint: "<account> [period]"
+---
+
+# Reconciliation
+
+**Important**: This skill assists with reconciliation workflows but does not provide financial advice. All reconciliations should be reviewed by qualified financial professionals before sign-off.
+
+Methodology and best practices for account reconciliation, including GL-to-subledger, bank reconciliations, and intercompany. Covers reconciling item categorization, aging analysis, and escalation.
+
+## Reconciliation Types
+
+### GL to Subledger Reconciliation
+
+Compare the general ledger control account balance to the detailed subledger balance.
+
+**Common accounts:**
+- Accounts receivable (GL control vs AR subledger aging)
+- Accounts payable (GL control vs AP subledger aging)
+- Fixed assets (GL control vs fixed asset register)
+- Inventory (GL control vs inventory valuation report)
+- Prepaid expenses (GL control vs prepaid amortization schedule)
+- Accrued liabilities (GL control vs accrual detail schedules)
+
+**Process:**
+1. Pull GL balance for the control account as of period end
+2. Pull subledger trial balance or detail report as of the same date
+3. Compare totals — they should match if posting is real-time
+4. Investigate any differences (timing of posting, manual entries not reflected, interface errors)
+
+**Common causes of differences:**
+- Manual journal entries posted to the control account but not reflected in the subledger
+- Subledger transactions not yet interfaced to the GL
+- Timing differences in batch posting
+- Reclassification entries in the GL without subledger adjustment
+- System interface errors or failed postings
+
+### Bank Reconciliation
+
+Compare the GL cash balance to the bank statement balance.
+
+**Process:**
+1. Obtain the bank statement balance as of period end
+2. Pull the GL cash account balance as of the same date
+3. Identify outstanding checks (issued but not cleared at the bank)
+4. Identify deposits in transit (recorded in GL but not yet credited by bank)
+5. Identify bank charges, interest, or adjustments not yet recorded in GL
+6. Reconcile both sides to an adjusted balance
+
+**Standard format:**
+
+```
+Balance per bank statement:         $XX,XXX
+Add: Deposits in transit            $X,XXX
+Less: Outstanding checks           ($X,XXX)
+Add/Less: Bank errors               $X,XXX
+Adjusted bank balance:              $XX,XXX
+
+Balance per general ledger:         $XX,XXX
+Add: Interest/credits not recorded  $X,XXX
+Less: Bank fees not recorded       ($X,XXX)
+Add/Less: GL errors                 $X,XXX
+Adjusted GL balance:                $XX,XXX
+
+Difference:                         $0.00
+```
+
+### Intercompany Reconciliation
+
+Reconcile balances between related entities to ensure they net to zero on consolidation.
+
+**Process:**
+1. Pull intercompany receivable/payable balances for each entity pair
+2. Compare Entity A's receivable from Entity B to Entity B's payable to Entity A
+3. Identify and resolve differences
+4. Confirm all intercompany transactions have been recorded on both sides
+5. Verify elimination entries are correct for consolidation
+
+**Common causes of differences:**
+- Transactions recorded by one entity but not the other (timing)
+- Different FX rates used by each entity
+- Misclassification (intercompany vs third-party)
+- Disputed amounts or unapplied payments
+- Different period-end cut-off practices across entities
+
+## Reconciling Item Categorization
+
+### Category 1: Timing Differences
+
+Items that exist because of normal processing timing and will clear without action:
+
+- **Outstanding checks:** Checks issued and recorded in GL, pending bank clearance
+- **Deposits in transit:** Deposits made and recorded in GL, pending bank credit
+- **In-transit transactions:** Items posted in one system but pending interface to the other
+- **Pending approvals:** Transactions awaiting approval to post in one system
+
+**Expected resolution:** These items should clear within the normal processing cycle (typically 1-5 business days). No adjusting entry needed.
+
+### Category 2: Adjustments Required
+
+Items that require a journal entry to correct:
+
+- **Unrecorded bank charges:** Bank fees, wire charges, returned item fees
+- **Unrecorded interest:** Interest income or expense from bank/lender
+- **Recording errors:** Wrong amount, wrong account, duplicates
+- **Missing entries:** Transactions in one system with no corresponding entry in the other
+- **Classification errors:** Correctly recorded but in the wrong account
+
+**Action:** Prepare adjusting journal entry to correct the GL or subledger.
+
+### Category 3: Requires Investigation
+
+Items that cannot be immediately explained:
+
+- **Unidentified differences:** Variances with no obvious cause
+- **Disputed items:** Amounts contested between parties
+- **Aged outstanding items:** Items that have not cleared within expected timeframes
+- **Recurring unexplained differences:** Same type of difference appearing each period
+
+**Action:** Investigate root cause, document findings, escalate if unresolved.
+
+## Aging Analysis for Outstanding Items
+
+Track the age of reconciling items to identify stale items requiring escalation:
+
+| Age Bucket | Status | Action |
+|-----------|--------|--------|
+| 0-30 days | Current | Monitor — within normal processing cycle |
+| 31-60 days | Aging | Investigate — follow up on why item has not cleared |
+| 61-90 days | Overdue | Escalate — notify supervisor, document investigation |
+| 90+ days | Stale | Escalate to management — potential write-off or adjustment needed |
+
+### Aging Report Format
+
+| Item # | Description | Amount | Date Originated | Age (Days) | Category | Status | Owner |
+|--------|-------------|--------|-----------------|------------|----------|--------|-------|
+| 1      | [Detail]    | $X,XXX | [Date]          | XX         | [Type]   | [Status] | [Name] |
+
+### Trending
+
+Track reconciling item totals over time to identify growing balances:
+
+- Compare total outstanding items to prior period
+- Flag if total reconciling items exceed materiality threshold
+- Flag if number of items is growing period over period
+- Identify recurring items that appear every period (may indicate process issue)
+
+## Escalation Thresholds
+
+Define escalation triggers based on your organization's risk tolerance:
+
+| Trigger | Threshold (Example) | Escalation |
+|---------|---------------------|------------|
+| Individual item amount | > $10,000 | Supervisor review |
+| Individual item amount | > $50,000 | Controller review |
+| Total reconciling items | > $100,000 | Controller review |
+| Item age | > 60 days | Supervisor follow-up |
+| Item age | > 90 days | Controller / management review |
+| Unreconciled difference | Any amount | Cannot close — must resolve or document |
+| Growing trend | 3+ consecutive periods | Process improvement investigation |
+
+*Note: Set thresholds based on your organization's materiality level and risk appetite. The examples above are illustrative.*
+
+## Reconciliation Best Practices
+
+1. **Timeliness:** Complete reconciliations within the close calendar deadline (typically T+3 to T+5 business days after period end)
+2. **Completeness:** Reconcile all balance sheet accounts on a defined frequency (monthly for material accounts, quarterly for immaterial)
+3. **Documentation:** Every reconciliation should include preparer, reviewer, date, and clear explanation of all reconciling items
+4. **Segregation:** The person who reconciles should not be the same person who processes transactions in that account
+5. **Follow-through:** Track open items to resolution — do not just carry items forward indefinitely
+6. **Root cause analysis:** For recurring reconciling items, investigate and fix the underlying process issue
+7. **Standardization:** Use consistent templates and procedures across all accounts
+8. **Retention:** Maintain reconciliations and supporting detail per your organization's document retention policy

package/content/finance/skills/finance-sox-testing/SKILL.md

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+---
+name: sox-testing
+description: Generate SOX sample selections, testing workpapers, and control assessments. Use when planning quarterly or annual SOX 404 testing, pulling a sample for a control (revenue, P2P, ITGC, close), building a testing workpaper template, or evaluating and classifying a control deficiency.
+argument-hint: "<control area> [period]"
+---
+
+# SOX Compliance Testing
+
+> If you see unfamiliar placeholders or need to check which tools are connected, see [CONNECTORS.md](../../CONNECTORS.md).
+
+**Important**: This command assists with SOX compliance workflows but does not provide audit or legal advice. All testing workpapers and assessments should be reviewed by qualified financial professionals before use in audit documentation.
+
+Generate sample selections, create testing workpapers, document control assessments, and provide testing templates for SOX 404 internal controls over financial reporting.
+
+## Usage
+
+```
+/sox <control-area> <period>
+```
+
+### Arguments
+
+- `control-area` — The control area to test:
+  - `revenue-recognition` — Revenue cycle controls (order-to-cash)
+  - `procure-to-pay` or `p2p` — Procurement and AP controls (purchase-to-pay)
+  - `payroll` — Payroll processing and compensation controls
+  - `financial-close` — Period-end close and reporting controls
+  - `treasury` — Cash management and treasury controls
+  - `fixed-assets` — Capital asset lifecycle controls
+  - `inventory` — Inventory valuation and management controls
+  - `itgc` — IT general controls (access, change management, operations)
+  - `entity-level` — Entity-level and monitoring controls
+  - `journal-entries` — Journal entry processing controls
+  - Any specific control ID or name
+- `period` — The testing period (e.g., `2024-Q4`, `2024`, `2024-H2`)
+
+## Workflow
+
+### 1. Identify Controls to Test
+
+Based on the control area, identify the key controls. Present the control matrix:
+
+| Control # | Control Description | Type | Frequency | Key/Non-Key | Risk | Assertion |
+|-----------|-------------------|------|-----------|-------------|------|-----------|
+| [ID]      | [Description]     | Manual/Automated/IT-Dependent | Daily/Weekly/Monthly/Quarterly/Annual | Key | High/Medium/Low | [CEAVOP] |
+
+**Control types:**
+- **Automated:** System-enforced controls with no manual intervention
+- **Manual:** Controls performed by personnel with judgment
+- **IT-dependent manual:** Manual controls that rely on system-generated data
+
+**Assertions (CEAVOP):**
+- **C**ompleteness — All transactions are recorded
+- **E**xistence/Occurrence — Transactions actually occurred
+- **A**ccuracy — Amounts are correctly recorded
+- **V**aluation — Assets/liabilities are properly valued
+- **O**bligations/Rights — Entity has rights to assets, obligations for liabilities
+- **P**resentation/Disclosure — Properly classified and disclosed
+
+### 2. Determine Sample Size
+
+Calculate sample sizes based on control frequency and risk:
+
+| Control Frequency | Population Size (approx.) | Recommended Sample |
+|------------------|--------------------------|-------------------|
+| Annual           | 1                        | 1 (test the instance) |
+| Quarterly        | 4                        | 2 |
+| Monthly          | 12                       | 2-4 (based on risk) |
+| Weekly           | 52                       | 5-15 (based on risk) |
+| Daily            | ~250                     | 20-40 (based on risk) |
+| Per-transaction  | Varies                   | 25-60 (based on risk and volume) |
+
+Adjust for:
+- **Risk level:** Higher risk controls require larger samples
+- **Prior year results:** Controls with prior deficiencies need larger samples
+- **Reliance:** Controls relied upon by external auditors may need larger samples
+
+### 3. Generate Sample Selection
+
+Select samples from the population using the appropriate method:
+
+**Random selection** (default for transaction-level controls):
+- Generate random numbers to select specific items from the population
+- Ensure coverage across the full period
+
+**Systematic selection** (for periodic controls):
+- Select items at fixed intervals with a random start point
+- Ensure representation across all sub-periods
+
+**Targeted selection** (supplement to random, for risk-based testing):
+- Select items with specific risk characteristics (high dollar, unusual, period-end)
+- Document rationale for targeted selections
+
+Present the sample:
+
+```
+SAMPLE SELECTION
+Control: [Control ID] — [Description]
+Period: [Testing period]
+Population: [Count] items, $[Total value]
+Sample size: [N] items
+Selection method: [Random/Systematic/Targeted]
+
+| Sample # | Transaction Date | Reference/ID | Amount | Selection Basis |
+|----------|-----------------|--------------|--------|-----------------|
+| 1        | [Date]          | [Ref]        | $X,XXX | Random          |
+| 2        | [Date]          | [Ref]        | $X,XXX | Random          |
+| ...      | ...             | ...          | ...    | ...             |
+```
+
+### 4. Create Testing Workpaper
+
+Generate a testing template for each control:
+
+```
+SOX CONTROL TESTING WORKPAPER
+==============================
+Control #: [ID]
+Control Description: [Full description of the control activity]
+Control Owner: [Role/title — to be filled by tester]
+Control Type: [Manual/Automated/IT-Dependent Manual]
+Frequency: [How often the control operates]
+Key Control: [Yes/No]
+Relevant Assertion(s): [CEAVOP]
+Testing Period: [Period]
+
+TEST OBJECTIVE:
+To determine whether [control description] operated effectively throughout the testing period.
+
+TEST PROCEDURES:
+1. [Step 1 — What to inspect, examine, or re-perform]
+2. [Step 2 — What evidence to obtain]
+3. [Step 3 — What to compare or verify]
+4. [Step 4 — How to evaluate completeness of performance]
+5. [Step 5 — How to assess timeliness of performance]
+
+EXPECTED EVIDENCE:
+- [Document type 1 — e.g., signed approval form]
+- [Document type 2 — e.g., system screenshot showing review]
+- [Document type 3 — e.g., reconciliation with preparer sign-off]
+
+TEST RESULTS:
+
+| Sample # | Ref | Procedure 1 | Procedure 2 | Procedure 3 | Result | Exception? | Notes |
+|----------|-----|-------------|-------------|-------------|--------|------------|-------|
+| 1        |     | Pass/Fail   | Pass/Fail   | Pass/Fail   | Pass/Fail | Y/N    |       |
+| 2        |     | Pass/Fail   | Pass/Fail   | Pass/Fail   | Pass/Fail | Y/N    |       |
+
+EXCEPTIONS NOTED:
+| Sample # | Exception Description | Root Cause | Compensating Control | Impact |
+|----------|----------------------|------------|---------------------|--------|
+|          |                      |            |                     |        |
+
+CONCLUSION:
+[ ] Effective — Control operated effectively with no exceptions
+[ ] Effective with exceptions — Control operated effectively; exceptions are isolated
+[ ] Deficiency — Control did not operate effectively
+[ ] Significant Deficiency — Deficiency is more than inconsequential
+[ ] Material Weakness — Reasonable possibility of material misstatement not prevented/detected
+
+Tested by: ________________  Date: ________
+Reviewed by: _______________  Date: ________
+```
+
+### 5. Provide Common Control Templates
+
+Based on the control area, provide pre-built test step templates:
+
+**Revenue Recognition:**
+- Verify sales order approval and authorization
+- Confirm delivery/performance evidence
+- Test revenue recognition timing against contract terms
+- Verify pricing accuracy to contract/price list
+- Test credit memo approval and validity
+
+**Procure to Pay:**
+- Verify purchase order approval and authorization limits
+- Confirm three-way match (PO, receipt, invoice)
+- Test vendor master data change controls
+- Verify payment approval and segregation of duties
+- Test duplicate payment prevention controls
+
+**Financial Close:**
+- Verify account reconciliation completeness and timeliness
+- Test journal entry approval and segregation of duties
+- Verify management review of financial statements
+- Test consolidation and elimination entries
+- Verify disclosure checklist completion
+
+**ITGC:**
+- Test user access provisioning and de-provisioning
+- Verify privileged access reviews
+- Test change management approval and testing
+- Verify batch job monitoring and exception handling
+- Test backup and recovery procedures
+
+### 6. Document Control Assessment
+
+Classify any identified deficiencies:
+
+**Deficiency:** A control does not allow management or employees to prevent or detect misstatements on a timely basis. Consider:
+- Likelihood of misstatement
+- Magnitude of potential misstatement
+- Whether compensating controls exist
+
+**Significant Deficiency:** A deficiency (or combination) that is less severe than a material weakness but important enough to merit attention by those responsible for oversight.
+
+**Material Weakness:** A deficiency (or combination) such that there is a reasonable possibility that a material misstatement will not be prevented or detected on a timely basis.
+
+### 7. Output
+
+Provide:
+1. Control matrix for the selected area
+2. Sample selections with methodology documentation
+3. Testing workpaper templates with pre-populated test steps
+4. Results documentation template
+5. Deficiency evaluation framework (if exceptions are identified)
+6. Suggested remediation actions for any noted deficiencies