CONTROL ENVIRONMENT Yes No N/A
The functions of Board of Directors and its committees
Are board of directors meetings held regularly?
Are directors assigned specific responsibilities to verview various functions?
Management philosophy and operating style
Are internal control policies and procedures in writing? the policies and procedures communicated to all procedures exist for ensuring compliance of the ies?
Organization structure and methods of assigning authority and responsibility
Is there an updated organization chart?
Have Job descriptions been prepared for all staff?
Are limits of authority of various managers and directors set out in writing?
Management Control System Internal audit
Does the entity have an internal audit function? Yes No N/A
Does the internal auditor report directly to board of directors?
Is the internal auditor free to communicate fully with the external auditors?
Are there any restrictions over the scope of internal auditor?
Is the internal audit department staffed by experienced and professional personnel?
Is internal audit function properly planned, supervised and documented?
Are operating and financial budgets prepared
Are variances regularly analyzed and corrective action taken?
Does the entity adequately plan for staff needs?
Does the company policy provides for hiring adequately qualified and experienced personnel?
Are there regular training programs for staff?
Is staff performance regularly evaluated?
Are increments and promotions based on performance evaluation?
Do the policies provide for adequate segregation of functions among approval recording and safe custody of assets?
Revenues And Receivables
Sale prices and terms are in accordance with management’s authorization
Goods delivered and services provided are billed on a timely basis.
Revenues and receivables are correctly recorded as to account, amount and period.
(Accuracy, cutoff, classification)
Access to accounts receivable ledger and, unused sales invoices are restricted to authorized personnel. (Safeguarding of assets)
Are policies and procedures clearly defined for acceptance and approval of sales orders? Yes No N/A
Are customer orders checked against credit limits?
Are orders from new customers referred to credit control
Delivery of Goods
Are pre numbered dispatch notes issued?
Are dispatch notes authorized?
Is access to inventories restricted so that withdrawals of inventories are based only on the basis of approved sales orders?
Are dispatch notes compared with sales invoices to ensure that all goods delivered are billed and accounted for? Yes No N/A
Are all dispatch notes accounted for sequentially?
Does the customer sign the dispatch notes I as acknowledgment of receipt of goods?
Are sales invoices pre numbered and accounted for to determine that all invoices recorded?
Are sales invoices matched with dispatch notes?
Are sales invoices checked with price lists?
Are sales invoices checked for arithmetical accuracy?
Are posting to accounts receivable ledger made independently of recording in sales journal and posting to general ledger?
Are posting to general ledger control accounts made by a person independent of physical handling of collections and posting accounts receivable subsidiary ledger?
Is coding on sales invoices independently checked?
Are credit notes pre numbered?
Are credit notes matched with goods received notes for returns?
Are credit notes checked against original invoice values? Yes No N/A
Are allowance for doubtful account and write off approved by responsible official?
Are unused dispatch notes and sales invoices stored in secured areas with restricted access?
Is aging schedule prepared by someone independent of the billing and cash receipt functions?
Are monthly statements independently mailed to customers?
Are entries in cash book compared with counterfoils of deposit slips and deposits per bank statement?
Are customer balances independently agreed with their confirmations?