Planned inventory levels and transactions are management’s general or specific authorizations. in accordance with
All inventories purchased and sold are accounted for. (completeness) Inventory transactions are accurately recorded as to account, amount and period. (Cut off, classifications, accuracy)
Access to warehouse and inventory records is suitably controlled to prevent or detect on a timely basis duplicate or improper payment. (Safeguard)
Are all purchases based on approved requisitions? Yes No N/A
Are maximum and minimum quantities, re order levels, and buying quantities approved by a designated officer?
Are purchase order and goods receiving reports, and delivery notes pre numbered and accounted for?
Are the entries In inventory control accounts and perpetual records independently verified as to account, amount and period.
(Classification, accuracy, cutofJ)
Are material requisitions and physical transfer of inventory subjected to review of approval and accounting for all documents?
Is labour cost recorded in sufficient details to be identified with job order or a process. (Classification)
Are clock cards reconciled to time sheets?
Is the policy for inclusion or exclusion of certain overheads from inventories reasonable and applied consistently?
Are overheads applied on the basis of normal capacity?
Are applied overhead rates compared at reasonable intervals with actual overhead costs?
Are cost accounting records integrated with financial accounting? Yes No N/A
Is the warehouse physically secure?
Can only authorized persons enter in warehouse?
Is control over inventory records adequate?
Are receiving reports prepared promptly for all goods received?
Are all goods received inspected for condition and independently counted, weighed, or measured?
Are suppliers invoices prior to payment compared with receiving reports, and debit memos.
Are delivery notes independently matched with sales voices?
Are all adjustments to inventory and cost of sales made in cordance with management’s authorization?
e all dispositions of obsolete or excess inventory or crap made in accordance with management’s authorization?
If the complete physical inventory count is made before the year end, are the controls over movements of inventory and accuracy of recording satisfactory for such timings?
Are count instructions clearly communicated to staff and understood by persons who perform?
If counts are made on cycle basis, are complete and accurate perpetual records maintained, adequate controls exist on physical movement of goods and cut off procedures, inventory items to be counted are clearly identified and effective segregation of duties exist?
Are detailed inventory count instructions prepared? Are inventory movements adequately controlled during the count?
Are controls over sales and delivery activities sufficient to ensure exclusion from physical count items which have been sold but not delivered?
(Accuracy, Safeguarding) Are controls over purchasing and receiving activities ufficient to ensure that liabilities have been set up for items included in inventory which have not been paid for (Accuracy, Safeguarding)
Are physical inventories re-counted by persons other than ose who made the first count? (Accuracy, Safeguarding)
Fixed Assets Transactions
Additions, dispositions and related depreciation charges are made in accordance with management’s general or specific authorizations.
All fixed assets acquired are accounted for. (Completeness)
Fixed assets are accurately recorded as to account, amount and period. (Classifications, accuracy, cut off)
Access to fixed assets is suitably controlled to prevent unauthorized use.
Is advance approval required for acquisition and sale of fixed assets?
Are requests for additions, dispositions, major repairs and maintenance of fixed assets formally documented including reasons for the proposal and the estimated amounts involved?
Are authorization for acquisition and dispositions adequately-dccumented?
Are all.purchases based.on approved purchase orders?
Are detailed records for each class of asset reconciled with control accounts?
Are useful lives periodically reviewed?
Are procedures adequate to determine that fixed assets paid for, have been received?
Are procedures adequate to determine that proceeds from sale of fixed assets have been received?
Are physical assets periodically reconciled with fixed assets records and appropriate action is taken regarding any differences? (Accuracy, Safeguarding)
The nature and terms of investment transactions are made in accordance with management’s authorizations. (Occurrence)
All investments held by the company are accounted for. (Completeness)
Investment transactions are accurately recorded as to account, amount and period. (Classification, accuracy, cut oft)
Documents evidencing ownership of investments and related collateral and other investment records are subjected to reasonably adequate physical safeguards and effective custodial accountability procedures. (Safeguarding)
Investments are periodically reconciled with detailed records and appropriate action is taken regarding any differences. (Subsequent accountability)
Are upto date adequate investments records maintained including control of related income? (Completeness, accuracy)
Are procedures accurate to determine that investment income is properly accounted and promptly controlled?
Are investments and related collateral reviewed and appraised or valued at market values at reasonable intervals for comparison with cost?
Are detailed investment records reconciled with the general ledger control accounts including related income?
Are shares and securities and related collateral subject to reasonably adequate physical safeguard?
Are investment securities, except for bearer securities, registered in the name of the company or nominee designated in accordance with management’s authorization?
Is authority to withdraw investment securities from
custody limited and written authorization is required with
joint signatures of responsible officials?
Are investments subject to regular physical check and
reconciled with detailed records?
Transactions are properly authorized before being processed by the computer.
Transactions are not lost, and accurately converted into machine form. (Completeness and accuracy)
Access to program and data files are in accordance with management authorization (Safeguarding)
Are only authorized programs used? (Occurrence)
Is an authorization structure established over transactions being entered into system? (Occurrence)
Are passwords regularly changed? (Occurrence)
Are written and approved requests made for program changes? (Occurrence)
Is adequate testing carried out for new systems? (Completeness. accuracy)
Is access to system documentation restricted? (Completeness. accuracy, occurrence)
Are transactions checked to ensure that none are lost, added, duplicated or improperly changed. (Completeness. accuracy)
Are there built in controls to ensure that processing errors are detected and corrected. (Completeness. accuracy)
Back up files should be stored at remote location. (Safeguarding)
Are recovery procedures established in the event of accidental destruction. (Safeguarding)
Is uninterrupted power supply available to prevent corruption of data file? (Safeguarding)
Is there planned equipment maintenance to prevent any breakdown? (Safeguarding)