Internal Control Questionnaire for Cash Disbursement

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Expenditure Class of Transaction: Cash Disbursements

YES NO N/A REMARKS

Executing

1. Are all disbursement (Except for pretty cash) made by checks?

2. Are imprinted and prenumbered checks used?
3. Is a check-protection device used in printing check amounts?
4. Is each check supported by an approved voucher?
5. Is supporting documentation mutilated after payment?
6. Are two signatures required on each check?
7. Does last check signer mailed a check and
Remittance advice?
8. Are there prohibition against issuing check to Cash and bearer?
9. Is the signing of blank checks prohibited?
10. Is a daily summary of checks prepare and agree to cheeks
issued?

Recording

1. Are accounting personnel prohibited from signing checks?

2. Are daily summaries of checks compared with check register
totals?
3 Are checks recorded in numerical sequence?

Custody

1. Are there periodic independent reconciliation of bank accounts?

Prepared by: Reviewed by: Approved by:

 Internal Control Questionnaire for Sales Adjustments

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Expenditure Class of Transaction: Sales Adjustments

YES NO N/A REMARKS

1. Are all cash discounts approved?

2. Are sales returns and allowances approved by sales personnel?
3. Are renumbered credits memos used for sales returns and
allowance?
4. Is there separation of duties between approval of sales returns and
allowance and issuance of credit memos?
5. Are all bad debt write offs approved in writing?
6. Is there separation of duties between the approval of bad debt
write-offs and collection from costumers?

Prepared by: Reviewed by: Approved by:

 Internal Control Questionnaire for Payroll Transaction

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Expenditure Class of Transaction: Payroll Transaction

YES NO N/A REMARKS

Executing

1. Are hirings authorized by personnel Department?

2. Are names of newly hired and terminated Employees reported in
writing to the payroll Department?
3. Are wage rate determine by contract or approved by a personnel
officer?
4. Are time cards or piecework reports prepared by the employee
approved by his/her supervisor?
5. Is a time clock or other electromechanical system used?
6. Is there internal verification of payroll checks with payroll register
data?
7. Are payroll checks signed and distributed by treasure office
personnel?
8. Are payroll tax returns reconciled to employees earnings records?

Recording

1. Are personnel who journalize payroll

transaction independent of those who prepare
and pay the payroll
2. Are changes in employee earnings records reconciled with
payroll register data?

Custody

1. Are unclaimed wages deposited in a special bank account or

 otherwise controlled by a responsible officer?
2. Are blank payroll checks properly safeguarded?
3. Are personnel and employee earnings records kept in locked
files?
4. Is payroll bank account periodically reconciled by an
independent person?

Prepared by: Reviewed by: Approved by:

Internal Control Questionnaire for Sales

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Revenue Class of Transaction: Sales

YES NO N/A REMARKS

Executing

1. Are customers order compared to an approved customer lists?

2. Is a prenumbered sales order issued for each accepted 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?
5. Is a sales order required before an order is filled?
6. Is there internal verification of the goods in filling a sales order?
7. Are the goods compared with the sales order in shipping?
8. Is each shipment supported by a prenumbered shipping document?
9. Are shipping documents and sales orders compared in billing?
10 Are prenumbered sales invoices used in billing?
11. Is there internal verification of prices and mathematical accuracy
of sales invoices?
12. Are daily sales summaries prepared and agreed to the invoices
used?

Recording
 1. Are the daily sales journal entries agreed to daily sales journal?
2. Are invoices journalized in numerical sequence?
3. Is there periodic independent reconciliation of accounts receivable
control and the customers ledger?

Custody

1. Are there adequate physical controls over accounts receivable

records?
2. Is there independent mailing of monthly statements to customers?

Prepared by: Reviewed by: Approved by:

Internal Control Questionnaire for Acquisitions

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Expenditure Class of Transaction: Acquisitions

YES NO N/A REMARKS

1. Is there separation between authority, recording, and custody of

merchandise/ supplies purchases?
2. Are steps taken to ensure the best price for merchandise?
3. Is immediate control established over merchandise received from
vendors?
4. Are receiving reports made out after an independent count?
5. Is a signed receipt obtained from store room on delivery of goods
by receiving?
6. Are purchase orders, receiving reports, and vendors invoices
matched in preparing vouchers?
7. Are vouchers approved by authorized personnel?
8. Are daily vouchers summaries prepared and agreed to vouchers
issued?

Recording
 1. Are all issued vouchers accounted for in journalizing?
2. Are voucher register entries reviewed for reasonableness?
3. Are unpaid voucher file and perpetual inventory records
independently maintained?
4. Are there independent reconciliations of control accounts and
subsidiary records?

Custody

1. Are goods stored in locked areas with restricted access?

2. Are there periodic independent comparisons of inventory records
with goods on hand?

Prepared by: Reviewed by: Approved by:

Internal Control Questionnaire for Cash Receipts Transactions

Client:______________________________ Audit date:____________________

Client Personnel
Interview:____________________________________________________________
Auditor:______________________________ Date Completed:________________
Reviewed by:___________________________ Date Reviewed:_________________
Type of Testing: Compliance
Cycle: Revenue Class of Transaction: Cash Receipts

YES NO N/A REMARKS

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 over the counter receipts?
5. Are prelist and checks independently reconciled with cash
summaries?
6. Are cash collections deposited daily?
7. Are deposits and daily cash summaries independently reconciled?
8. Are all employees who handled cash bonded adequately?
 Recording

1. Are accounting personnel prohibited for handling cash?

2. Is there internal verification of the agreement of daily cash
summaries and cash receipts journal entries?
3. Is there separation of duties between the journalizing of cash
receipts transactions and posting to the customers ledger?

Custody

1. Is cash stored in safes or vaults prior to deposit?

2. Are periodic independent counts made of cash in hand?

Prepared by: Reviewed by: Approved by:

INTERNAL AUDIT MEMORANDUM

DATE: December 17, 2011

SUBJECT: Audit of Financial Statements

Internal Audit will be performing an audit of financial position, which is scheduled to begin on January 5,
2012. We tentatively plan to complete our fieldwork by March 30, 2012. Our audit scope will cover the
period January 1, 2011 to December 31, 2011, and may be changed after the survey is completed. The
general objectives of this audit will be to evaluate compliance with organization policies and procedures;
laws, regulations or guidelines. We will also evaluate internal controls. This audit will focus on applicable
financial and performance issues.

To assist us with this audit, we would like to obtain some documentation prior to the start of fieldwork.
Please provide the following documentation:

All applicable laws, regulations, and guidelines

Any policy memorandums or directives
 A copy of your operating procedures manual (if available)
Current organizational chart
Applicable Budget Goals and Objectives

Please feel free to designate key member of your staff whom the auditors may contact when requesting
data. In addition, please arrange a workspace for the auditor(s).

Rest assured that inclusion of your department for audit on the Long-Range Audit Plan does not mean that
something is wrong. Our office is responsible for examining and evaluating the adequacy and
effectiveness of the organizations systems of internal controls and the quality of performance by county
departments.

I have assigned the following audit staff to this project:

Name Phone #

Supervisor Mr. Joven Patrick Aringo 09996625948

Auditor In Charge Ms. Jully Belle Carman 09178936654

Staff Auditors Ms. Jennifer Gallardo 09079225840

I have enclosed a brochure describing our audit process for your information. Ms. Jully Belle Carman will
be contacting you to arrange a convenient time for the Entrance Conference meeting. Should you have
any questions before we meet, do not hesitate to call me at 09178936654.