Internal Control Questionnaires

Inventory Control
EXECUTING
1. Is there a separation between authority,
recording, and custody of merchandise
inventory?
2. Are receiving reports made out after an actual
count?
RECORDING
1. Are there independent reconciliations for
physical count and inventory records?
CUSTODY
1. Are goods stored in locked areas with limited
access?
* who has access other than the person incharge?
Monitoring
EXECUTING
1. Do persons involved in monitoring have other
function in other departments?
RECORDING
1. Is there proper documentation for monitoring?
2. Are findings properly recorded or documented
by the person in-charge?
CUSTODY
1. Is access to monitoring records limited? If yes,
to whom?

YES

NO

N/A

YES

NO

N/A

Remarks

Remarks

PAYABLES
YE
S

N
O

N/A

Remarks

YE
S

N
O

N/A

Remarks

1. Are only original invoices used for

processing?
2. Are vendor invoices processed
promptly and recorded upon
receipt?
3. Are invoices matched with
receiving reports or other evidence
of receipt?
4. Are invoices checked for accuracy?
5. Are paid invoices immediately
canceled?
6. Are vouchers prepared per
payable? If yes, what are the
necessary supporting
documentation?

RECEIVING

1. Are non-conforming goods

promptly returned to vendors?
2. Are incomplete deliveries promptly
followed up?
3. Are goods and services received
documented in writing?
4. Are vendors promptly notified in
writing for non-conforming
services?
5. Are goods and services inspected
upon delivery/performance for
conformance with purchase order?

CASH RECEIPTS
YE
S
1. Are mail receipts opened by personnel
independent of Shipping, Billing, and
Accounting?
2. Is a remittance list prepared for mail
receipts?
3. Are checks endorsed restrictively
immediately upon opening the mail?
4. Are the cash registers used for overthe-counter receipts?
5. Are prelists and checks independently
reconciled with cash summaries
6. Are cash collections deposited daily?
7. Are deposit slips and daily cash
summaries independently reconciled?
8. Are accounting personnel prohibited
from handling cash?
9. Is there separation of duties between
the journalizing of cash receipts
transactions and posting to the
customers ledgers?
10.Is cash stored in safes or vaults prior to
deposit? If not, how is cash
safeguarded?
11.Are periodic independent counts made
of cash on hand?
12.Is a bank reconciliation prepared
monthly?

N
O

N/A

Remarks

PURCHASES
EXECUTING
1. Is there separation between authority,
recording,
and custody of purchases?
2. Are steps taken to ensure that the best
price for
the purchases?
3. Are receiving reports made after an
independent count?
4. Is a signed delivery receipt obtained
from the storeroom on delivery of goods by
receiving?
6. Are purchase orders, receiving reports,
and
vendors' invoices matched in preparing
vouchers?
7. Are vouchers internally verified for
accuracy and supported by sufficient
documents?
8. Are vouchers approved by authorized
personnel?
9. Are daily voucher summaries prepared
and agreed
to vouchers issued?
RECORDING
1. Are all issued vouchers accounted for
journalizing?
2. Are voucher register entries reviewed
for
reasonableness and correctness?
3. Are unpaid voucher files and inventory
records
independently maintained?
4. Are there periodic independent
reconciliations for
control accounts and subsidiary records?
CUSTODY

YES

NO

N/A

REMARKS

1. Are goods stored in locked areas with

limited
access?
2. Are there periodic independent
comparisons of inventory records with
actual count goods on hand?

CASH DISBURSEMENTS
EXECUTING
1. Are all disbursement (except petty
cash) made through checks?
2. Are imprinted and Prenumbered
checks used?
3. Is a check protection device used in
printing
the check amount?
4. Is each check supported by an
approved
voucher?
5. Is supporting documentation
destroyed payment?
6. Are two signatures required on each
check?
If yes, who are the assignatories?
7. Does the last check signer mail the
check and remittance advice?
8. Are there prohibitions against issuing
checks
to cash or bearer?
9. Is the signing of blank check
prohibited?
10. Is a daily summary of checks
prepared
and agreed to checks issued?
RECORDING

YES

NO

N/A

REMARKS

1. Are accounting personnel are

prohibited
from signing checks?
2. Are daily summaries of checks
compared
with checks register totals?
3. Are checks recorded in numerical
sequence?
CUSTODY
1. Are there periodic independent
reconciliations of bank accounts?

PAYROLL
EXECUTING
1. Are names of newly hired and
terminated
employees reported in writing to the
payroll department?
2. Are wage rate determined by contract
or
approved by personnel officer?
3. Are time cards and piecework reports
prepared
by the employee approved by his/her
supervisor?
4. Is the time clock or other
electromechanical
system used?
5. Is there internal verification of payroll
checks
with payroll register data?
6. Are payroll checks signed and
distributed by
treasurer's office personnel?

YES

NO

N/A

REMARKS

7. Are payroll tax returns reconciled to

employees
earnings records?
RECORDING
1. Are personnel who journalize payroll
transactions
independent of those who prepare and
pay
the payroll?
2. Are employee earnings records
reconciled with payroll register data?
3. Are wages and salaries checked for
mathematical correctness?
CUSTODY
1. Are unclaimed wages deposited in a
special bank
account? If not, is it handled by a
responsible officer?
2. Are blank payroll checks properly
safeguarded?
3. Are personnel and employee earnings
records
kept in files with limited access? Who
has access?
4. Is payroll bank account periodically
reconciled with payroll register by an
independent person?

SALES
EXECUTING
1. Are customer orders compared to an
approved
customer lists?
2. Is a prenumbered sales order issued for
each
approved customer order?
3. Is there internal verification of the
agreement of
sales order with customer order?
4. Are all credit sales approved prior to the
sale?

YES

NO

N/A

REMARKS

Who approves credit sales?

5. Is a sales order required before an order
is filed?
6. Is there internal verification of the goods
in filing a sales order?
7. Are the goods delivered with the sales
order?
8. Are prenumbered sales invoices used in
billing?
9. Is there internal verification of prices
and mathematical accuracy of sales
invoices?
10. Are daily sales summaries prepared
and agreed
to the invoices issued?
RECORDING
1. Are the daily sales journal entries
agreed to daily
sales summaries?
2. Are invoices journalized in numerical
sequence?
3. Is there periodic independent
reconciliation of
accounts receivable control account and
the customers' subsidiary ledger?
4. Are postings to subsidiary ledgers made
independent of journalizing and posting
the general ledger?
CUSTODY
1. Are there adequate physical controls
over
accounts receivable records?
2. Is there independent mailing of monthly
statements to customers?