QUESTIONS:

COMPANY BACKGROUND

1. How did your company started?

2. What are the company's objectives and mission and vision?
INTERNAL CONTROL
Control Environment
3. What are the objectives of your business?
4. Do you have policies, standards or guidelines set in the business?
5. If yes, who are the people who make these policies?
6. Do you have an audit committee?
7. If yes, who are your internal and external auditors?
8. Does your business have an organizational chart?(if YES, please provide
us a copy)
9. Are the duties and responsibilities for the employees of your organization
defined and kept in writing? ?(if YES, please provide us a copy)
10.
Do you have manual, certain standards or written policies
regarding the following? ?(if YES, please provide us a copy)
a)
b)
c)
d)

Hiring procedures
Promotions
Employee Performance Appraisal and Evaluation
Additional Compensation, Bonuses and Remuneration

Risk Assessment
11.
How do you maintain competitive advantage in the business?
12.
Do you have policies set in order to minimize credit risk in the
business?
13.
If yes, what are these policies?
14.
How do you deal with security risk?
15.
What are the preparations of the business in case of bankruptcy?
Information and Communication
16.
What are the different transactions of the company?
17.
Is there an existing system to effectively record, process, and report
its transactions? If yes, what are they?

Control Activities
1. How do employees record their working time? Are there any device to
record the working times of employees? Who monitors the record of the
working times of the employees?
2. Did the company install security cameras or CCTV cameras? How many
and what are the areas covered? Who monitors the CCTV coverage and
where does he/she keeps the files?
3. Who approves the documents for payments?
4. Who prepares check? Whose signatures are needed on the checks?
5. Who has an access to cash? How about to the vault where the cash is
kept?
6. Who has an access to accounting records?
7. Where do you keep business documents? Discuss the arrangement of the
documents and how long these documents are being kept?
8. How often are the accounts in the financial information being updated?
Are they properly reconciled? Are these supported by appropriate
business documents?
9. Are the documents properly filled up and are the information properly
checked? How does the management determine whether the information
found in the documents are reliable?
Monitoring
1. What are the permits being registered under the business name?
2. Are the buildings being checked for durability? Is there anyone incharged in checking whether the buildings are still safe? How often are
the buildings being checked?
3. Are there enough signs for fire exits or signs for safe area during
calamities? Are there signs being posted in areas to avoid danger? Are
these signs visible?
4. How many security guards are employed? Where do they usually guard
and what are their duties and responsibilities?
5. Are there fire alarms installed in the fire-hazard areas? Are they properly
working?
6. Is/Are there any person/s in charge in some areas of business to monitor
whether the business is complying with all laws applicable?
ACCOUNTING OPERATIONS

REVENUE COLLECTION
1. Do you accept the following other than cash as customers payment?
(Check if it is yes)
__ credit card
__ atm card
__check
__ others __________ (specify)

2. What particular service has the largest share in the net income?
3. What are the steps and processes involved in the collection of revenue?
4. Who are the employees involved in the collection of revenue or customers
bills?
5. How can you detect the fraud and error that may happen?
A.)What are the possible solutions for this kind of problem?
PURCHASE AND DISBURSEMENT
1. Who is/are the employee/s in-charge in the payment of expenses or

liabilities of the company?

2. Who are the authorized personnel or officer to handle and fix the
problems involving disbursement transactions?
3. What are the steps and processes in this kind of transaction?
4. How can you detect the fraud and error that may possibly happen?
A.)What are the possible solutions for this kind of problem?
5. How much is the maximum allowable expenditure?
6. Is it kept in a drawer, safe or drawer?
7. How often is the fund replenished?
8. If there are amount in excess in the former fund before replenishment,
what will happen?

9. Who is responsible in disbursing the fund?

10. Is there anyone who has the authority to spend the fund if the
authorized person is not around?
11. Is the purchasing agent required to obtain additional approval on
purchase orders above a stated amount?
12. Are purchase orders required for purchasing all equipment and
services?
13. Are purchase orders controlled and accounted for by prenumbering and
keeping a logbook?
14. What are the departments responsible for the purchase and
disbursement of the company?
15. How is the process?
16. What are the common expenses disbursed?
17. How many employees can access the cash vault?
18. What are their positions?
19. Is there a specific person who is responsible in depositing the fund?
20. (If there is assigned person) Is there anyone who has the authority to
deposit the fund if the assigned person is not around?
21. Who has the authority to prepare checks?
22. Who approves the checks?
23. Are deposits deposited by employees personally to bank or bank
employees goes to the resort to collect the deposits?
24. Is the purchasing function separate from accounting and receiving?

PAYROLL
1. Are payroll checks are prepared and distributed by individuals
independent of each other.

2. Are adequate timekeeping procedures, including the use of timeclock or

attendance sheets and supervisory review and approval, employed for
controlling paid time?
3. Who monitors the attendance of the employees?
4. What is the frequency of preparation of the attendance report of the
employees? Monthly? Weekly?
5. What are the departments involved in the processing the payroll?
6. Is there someone who verifies the payroll?
7. What is the process?
8. Is there any minimum amount of net pay for each employee?