AN INTERNAL CONTROL CHECKLIST

1. 2. 3. 4. 5. 6. 7. 8. Is the person who handles your cash also responsible for recording the cash? Does the person who pays or orders inventory also receive the materials? Are two or fewer people responsible for accounting function? Is only one person responsible for reviewing financial statements each month? Is your view of financial journal irregular? Are bank reconciliations performed on timely basis? Is someone responsible for reviewing reconciliation each month? Does the owner receive and open the bank statement prior to turning it over to the person who performs the bank reconciliation? 9. Have you ever hired an employee before checking references? 10. Do you permit your accounting personnel to work longer than a year without taking a vacation? 11. Do you have any accounting staff or key personnel who have not been secured with a fidelity bond? 12. Have you noticed a substantial change of lifestyle in any of your employees? 13. Do any of your employees have a possible substance abuse problem? 14. Are any of your employees living beyond their means? 15. Do you deposit cash and checks daily? 16. Do you maintain a list of office furniture, equipment and company vehicles? 17. Do you have adequate insurance coverage for assets? 18. Are all systems backed up on a daily basis and is backup stored off-site? 19. Is there password protection and security for all computer systems and programs? 20. Is password changed at least every six months? 21. The location of documents has locks or security?

QUESTIONS:

1. Who receives incoming money? ____________________________ a. Does this person make a list of amounts, payers and reasons for the receipt, which they subsequently compare to the cash receipts book? ____________________________ b. Do this persons duties exclude all other accounting duties? _______________ ____________________ 2. Who is authorized to issue receiving reports for the voucher packets? ______________________________ a. Do this persons duties exclude all other disbursement and receipt duties? ______________________________________ 3. Who records the transactions? ________________________ 4. Who maintains the cash receipts book? _________________________ 5. Who maintains the general ledger? ____________________________ 6. Are periodic tests of the overall reasonableness of amounts of categories of receipts documented? ______________________________________________ a. Is this documentation reviewed by a management employee who did not prepare it? ____________________________________________ 7. Are all general journal entries supported by a voucher packet of documentation that provides support for the reason and amount of the entry, and includes documentation of supervisory approval? ______________________________________ 8. Is matching of invoices to purchase orders and receiving reports done? _________________________________________________________ 9. Who made the reconciliation of accounts payable records with the general ledger control account? ________ _______________________ 10. Who made the issuance of purchase orders/ purchases? ______ ___________