INVENTORY

5 – SA 4–A 3–U 2 – 1– SD
D
Bill customer promptly.
Offer cash discounts for prompt payment.
Establish local collection office.
Invest idle cash in highly liquid, short-term
investments instead of holding idle precautionary
cash balances.
Is cash counted and verified when cashiers receive
their drawers?
Is adequate provision made for obsolete and
inactive items in inventories?
Is only one cashier able to access each cash
drawer at any given time so that cash will at all
times be in the possession and control of only one
person?
Are cash drawers assigned to one person and not
shared across shifts / employees?
Are duplicate copies of receipts retained?
Are receipts issued in sequence?
Are voided pre-numbered documents kept in the
bound receipt book?
Are all funds received deposited with no funds
being held back for change, petty cash, etc.?
Are deposit slips prepared in at least duplicate
form?
Do you perform background checks and
fingerprinting on all new employees who handle
cash?
Do these policies and procedures support internal
control?
Are cash funds periodically counted on a surprise
basis by an independent employee?
Does management investigate all substantial
variations from norms such as cash register voids,
no sales, refunds, errors, revenue levels, etc.?
Does someone independent of the cash receipts
process reconcile payment receipts to deposit
slips on a daily basis?
Does someone independent of the cash receipts
process reconcile payment receipts to receipt
records (receipts, mail log, cash register) on a daily
basis?
Does internal control appear adequate for the
cash receipts system overall?
Are adequate physical facilities such as a safe or
locking drawer provided for safeguarding cash?
Are receipt books safeguarded when unattended?
Are safe combinations and keys to lockboxes
restricted to a minimum number of employees?
Accounts Payable
5 – SA 4–A 3–U 2–D 1 – SD

Are safe combinations and keys to lockboxes

restricted to a minimum number of employees?
Does a procurement policy exist? Does it include
policies and procedures for acquiring capital items,
routine and non-operating purchases, contracts,
employee business travel expenses both local and out
of town and petty cash uses?
Does a schedule of payment approval authorities exist?
Is it adequate to ensure proper approval for
procurement payment and timely payment processing?
Are invoices matched to receiving reports and
purchase orders?
Is the accounts payable department a corporate
function or do other subsidiaries process accounts
payable transactions?
Is check stock inventoried upon receipt? Following
issues? Periodically?
Are invoices entered into the accounts payable system
upon receipt?
Are copies of invoices stamped to indicate duplicate
items?