Professional Documents
Culture Documents
CHECKLIST
General Accounting
Controls
1. Chart of accounts
1. Accounting procedures
manual
2. Organizational chart to
define responsibilities
3. Absence of entries direct
to ledgers
4. Posting references in
ledgers
5. Review of journal entries
6. Use of standard journal
entries
7. Use of prenumbered
forms
8. Support for all journal
entries
9. Access to records limited
to authorized persons
10.Rotation of accounting
personnel
11.Required vacations
12.Review of system at
every level
13.Appropriate revision of
chart of accounts
14.Appropriate revision of
procedures
15.Separation of
recordkeeping from
operations
16.Separation of
recordkeeping from
Yes
No
N/A
Comments
INTERNAL CONTROLS
CHECKLIST
custodianship
17.Record retention policy
18.Bonding of employees
19.A conflict of interest
policy
Yes
No
N/A
Comments
1. Imprest system
1. Reasonable amount
2. Completeness of
vouchers
3. Custodian responsible for
fund
4. Reimbursement checks
to order of custodian
5. Surprise audits
6. No employee check
cashing
7. Physically secure
8. Custodian has no access
to cash receipts
9. Custodian has no access
to accounting records
Yes
INTERNAL CONTROLS
CHECKLIST
No
N/A
Comments
INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
1. Numbered checks
1. Sufficient support for checks
2. Limited authorization to sign checks
3. No signing of blank checks
4. All checks accounted for
5. Detailed listing of checks
6. Mutilation of voided checks
7. Specific approval of unusually large checks
8. Proper authorization of persons signing
checks
9. Control over signature machines
10.Check listing compared to cash book
11.Control over interbank transfers
12.Prompt accounting for interbank transfers
13.Checks not payable to cash
14.Physical control of unused checks
15.Cancellation of supporting documents
16.Control over long outstanding checks
17.Reconciliation of bank account
18.Independence of person reconciling bank
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INTERNAL CONTROLS
CHECKLIST
statement
19.Bank statement direct to person reconciling
20.No access to cash records or receipts by
check signers
INTERNAL CONTROLS
CHECKLIST
Investments Controls
Yes
No
N/A
Comments
1. Proper authorization of
transactions
1. Under control of a custodian
2. Custodian bonded
3. Custodian separate from
cash receipts
4. Custodian separate from
investment records
5. Safety deposit box
6. Record of all safety deposit
visits
7. Access limited
8. Presence of two required for
access
9. Periodic reconciliation of
detail with control
10.Record of all aspects of all
securities
11.Availability of brokerage
advices, etc.
12.Periodic internal audit
13.Securities in name of
company
14.Proper segregation of
collateral
15.Physical control of collateral
16.Periodic appraisal of
collateral
17.Periodic appraisal of
investments
18.Adequate records of
investments for application
of equity method
INTERNAL CONTROLS
CHECKLIST
Accounts Receivable and Sales Controls
Yes
No
N/A
Comments
INTERNAL CONTROLS
CHECKLIST
INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
1.
1.
2.
3.
4.
5.
6.
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INTERNAL CONTROLS
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Prepaid Expenses and Deferred Charges
Yes
No
N/A
Comments
Yes
No
N/A
Comments
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INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
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INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
Yes
No
N/A
Comments
1. Designation of responsibility
1. Independence of A/P personnel from
purchasing, cashier, receiving functions
2. Periodic comparison of detail and control
3. Control over purchase returns
4. Clerical accuracy of vendors invoices
5. Matching of purchase order, receiving
report and vendor invoice
6. Reconciliation of vendor statements with
A/P detail
7. Control over debit memos
8. Control over advance payments
9. Review of unmatched receiving reports
10.Mutilation of supporting documents at
payment
11.Review of debit balances
12.Investigation of discounts not taken
Accrued Liabilities and Other Expenses
Controls
1. Proper authorization for expenditure and
incurrence
1. Control over partial deliveries
2. Postage meter
3. Purchasing department
4. Bids from vendors
5. Verification of invoices
6. Imprest cash account
7. Detailed records
8. Responsibility charged
9. Independence from G/L and cashier
functions
10.Periodic comparison with budget
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INTERNAL CONTROLS
CHECKLIST
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Payroll Controls
INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
Yes
No
N/A
Comments
1. Authorization to employ
1. Personnel data records
2. Tax records
3. Time clock
4. Supervisor review of time cards
5. Review of payroll calculations
6. Comparison of time cards to job sheets
7. Imprest payroll account
8. Responsibility for payroll records
9. Compliance with labor statutes
10.Distribution of payroll checks
11.Control over unclaimed wages
12.Profit sharing authorization
13.Responsibility for profit sharing
computations
Authorization to incur
Executed in company name
Detailed records of long-term debt
Reports of independent transfer agent
Reports of independent registrar
Otherwise adequate records of creditors
Control over unissued instruments
Signers independent of each other
Adequacy of records of collateral
Periodic review of debt agreement
compliance
10.Recordkeeping of detachable warrants
11.Recordkeeping of conversion features
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INTERNAL CONTROLS
CHECKLIST
Yes
No
N/A
Comments
1. Use of registrar
1. Use of transfer agent
2. Adequacy of detailed records
3. Comparison of transfer agents report
with records
4. Physical control over blank certificates
5. Physical control over treasury certificates
6. Authorization for transactions
7. Tax stamp compliance for canceled
certificates
8. Independent dividend agent
9. Imprest dividend account
10.Periodic reconciliation of dividend account
11.Adequacy of stockholders ledger
12.Review of stock restrictions and provisions
13.Valuation procedures for stock issuances
14.Other paid-in capital entries
15.Other retained earnings entries
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