Restaurant Regional Office Internal Control Audit Work Program

RESTAURANT REGIONAL OFFICE INTERNAL CONTROL
AUDIT WORK PROGRAM
PROJECT TEAM (LIST MEMBERS)
Project Timing Date Comments
Planning
Fieldwork
Report Issuance (Local)
Report Issuance (Worldwide)
AUDIT OBJECTIVES
The purpose of this work program is to conduct an internal control review at a restaurant company’s regional
office. Example audit areas covered in this work program include: payroll, overtime, inventory, bank
reconciliations, and approved vendors.
Time Project Work Step Initial Index
Pre-Audit
Set-up a disk sub-directory for the audit. Title the sub-directory by

market name. Include all computer files pertaining to the audit under
the sub-directory.
Contact the appropriate Market VP(s) and explain the scope and
timing of the audit.
Prior to your audit trip contact the Controller, Supervisors, Corporate

Cash Manager, Payroll Manager and anyone else whom may
have/know of questions/problems regarding the market.
Determine key exposure areas (i.e., operational scores, change in

operating income, labor productivity, other controllable, cash
variance, actual vs. theoretical food costs, etc.) for the market.
Assess and weigh (%) the effect of these exposure areas for each
restaurant. Rank the restaurants from worst to best. Based upon the
scope, audit the appropriate number of restaurants as per the risk
assessment.
Information to and from the Regional Accountant the week prior to

the field visit:
• Ensure the Regional Accountant will be available for assistance

(vacation, seminar, etc.)
1 Source: www.knowledgeleader.com
• Obtain a listing of recent Restaurant Managers for introduction

letters.
• Obtain a complete listing of restaurants and verify that all

restaurants are scheduled to be open.
• Request a listing of the various depository bank charges/fees that

the local banks charge ABC (e.g., per deposit, change, monthly
charges, etc.). This listing will be used during bank reconciliation
review to determine excessive bank charges and inefficient
banking by Restaurant Management.
• Determine the Region’s system for filing I-9s. (i.e., by Restaurant,

District or Market.)
• Provide via fax, the Internal Audit Checklist and the Restaurant
Performance Report Variance Analysis Explanation Request
letters to the Regional Accountant(s), so that they may organize
the documents requested and prepare explanations prior to our
arrival to the Market.
• Request the most current period’s X Daily Cash Report and

review for any unusual journal entries.
General Information in Office.
• Review all policy and procedure changes, as well as specific laws

(e.g., minors, overtime, tip credits, etc.) related to the state you
are auditing to ensure that all audit steps are accurate and up-to-
date.
• Review the ABC Restaurant Performance Report, prepared by

Financial Reporting for material percentage-of-sale variances
above or below the Market’s averages for total food costs, labor
costs, and other controllables.
Note restaurants in the same market with approximately the same
sales, but with material differences in expenses. Also note that all
restaurants with high cash variances for further review. All
variances should be noted in a Letter X. and forwarded to the
respective Regional Accountant and Market Manager (copies to
the Market VP) requesting an explanation for each variance noted
in their District(s).
• Review the Market’s prior audit report and note any problem areas
or restaurants for follow-up review during the current audit. Note
repetitive problem areas in the current audit report. In addition,
note any restaurants from the prior years’ audit that were not
visited and make sure they are audited in this audit.
• Obtain a copy of the Trial Balance by Restaurant, Regional Office,

Maintenance Department, Regional Accounting and any other
market related cost center. The Trial Balance may be obtained
from the Accounting Department.
Reports downloaded from the system.
Download the following reports for the District(s) audited for the most
current period and format:
• Current Employee List
• General Ledger balances for:

− Petty cash
− Change fund
− Credit cards
− A/R other
− A/R promo
− A/R gift certificates
Review all the accounts for reasonableness and compare like
Balance Sheet accounts of restaurants under review. Note any
unusual items and follow-up with the Market VP.
• Download a listing of all year-to-date journal entries posted by the

respective Regional Accountant(s).
Reports from other departments necessary one week prior to the field
visit.
• Prepare the Introduction Letters and have them signed by (insert

name).
• Prepare the following employee lists from the current employee

list download:
− I-9 list detailing District, Restaurant, Name, Social Security

Number, Date of Birth, Hire Date, Job Code and Status Code,
sorted by filing method determined appropriate.
− Active minors list, noting all employees whom are under the
age of 18, detailing District, Restaurant, Name, Social Security
Number, Birth Date, Hire Date and Job Code sorted by district
and by restaurant.
• Obtain an Unapproved Vendor Report detailed by market and

General Ledger Expense Account from (insert name) noting which
vendors are being used to provide food products. The report
contains the last two full periods plus all activity for the current
period. Before commencing the audit, review the report with the
Purchasing Department to verify that all vendors are approved by
ABC (note all unauthorized vendors in the report).
• Obtain the current labor productivity report from Financial

Planning and note any significant variances from the guideline for
further review.
• Determine the Senior Discount Policy from the Market Manager.
Send out the Pre-Audit Survey to the Market Manager.
Regional Office Internal Control Review
Cash and Sales Report Review
• Cash and Sales Analysis
Objective: To determine any material trends in certain Cash and

Sales transactions.
− Obtain the last X Sunday’s Cash and Sales Reports.
− Prepare analysis of:
• Number of customers per void count and void dollar per number of
customers.
• Actual cash variance per tender transactions (net of any accounts

receivable)
• Paid out count and amount (net of any labor paid outs and alcohol
purchases)
− Review the schedules prepared above and note any trends,
material fluctuations from the norm, or any other unusual
variations that should be reviewed during the detail compliance
testing.
• Detailed Compliance Testing
Objective: To ensure that all transactions are authorized, complete,

accurate and substantiated.
Scope: Audit all transactions in the market for the two most current
weeks with special attention to any issues noted in the Cash and
Sales Analysis. Expand scope as deemed necessary.
Note: When reviewing Cash and Sales items be sure to note the
Cashier/Manager’s name, if possible.
− Agree all weekly “opening” and “closing” activity readings, also

noting that the daily “activity” and daily “gross sales” line item
numbers agree. If the daily “activity” and daily “gross sales” line
item numbers do not agree, perform the calculation to ensure
that all sales transactions are properly recorded.
If sales transactions are missing, request the Electronic
Journals for days any transactions are missing. When daily
amounts on the Cash and Sales Reports are not totaling
correctly on a consistent basis, note the restaurant number for
a visit. At the restaurant, review the Electronic Journal for the
daily function X, which signifies that the Restaurant Manager
took an opening reading and zeroed out all totals before any
customer transactions were recorded.
− Paid Outs
• Pay particular attention to those restaurants noted in the Cash and

Sales Analysis as having excessive amounts.
• Agree all paid outs to a receipt, signed and approved by

Restaurant Management.
• Agree the total dollar amount on the Paid-Out Log to the total
dollar amount on the respective (insert day) Cash and Sales
Report.
• For restaurants with excess amounts, list the items that are being
purchased (i.e., cost of sales items, office supplies).
• Verify cash paid outs between $X and $X (excluding alcohol and

labor paid outs) are approved by the Market Manager.
• Verify cash paid outs between $X and $X are approved by the

Market VP.
− Review the credit card summary tape for possible duplicated
transactions without credits or adjustments. Also review for
manual and non-manual credit card transactions for the same
credit card numbers. Follow-up on all Cash and Sales Reports
with credit card deposit overages and cash shortages, not
reconciled with an explanation. This is a sign of potential credit
card fraud that requires an increased audit scope. Review the
credit card invoices or the summary listing that support the
Cash and Sales Report, noting all hand-keyed credit card
transactions. All hand-keyed credit card transactions must be
accompanied with an imprinted credit card hard copy.
− Verify that material cash shortages and overages of $X or
more are documented with an incident report. All incident
reports should be completed in their entirety and dated within
24 hours of the incident (use actual over/short).
− Trace the validated deposit slips or respective bank statement
to the corresponding deposits on the Cash and Sales Report,
noting the correct deposit amount and the timing of the deposit.
All deposits should be credited by the bank the second
business day immediately following the sales date. For all
exceptions, note the corresponding restaurant, sales date,
deposit date and amount.
− Review deposit slips for any personal or payroll checks being
deposited. If payroll checks are noted using the query from
Payroll, follow-up on the existence of those employees
(validations may also be printed on the reverse side of the
deposit slip as well).
− Review the bank statement for the corresponding period to

determine if:
• Deposits are being credited and debited within a day of each other
for restaurants that use the wire transfer company.
• Verify that the confirmation/control numbers from the wire transfer

company are recorded on the Cash and Sales Report.
− Agree the void receipts attached to the Cash and Sales
Reports, with the amounts and count reported on the Cash and
Sales Reports. Pay particular attention to those restaurants
noted in the Cash and Sales Analysis as having excessive
voids. Ensure that all voids are processed in accordance with
Company policy (i.e., processed not more than X hours or
during the same meal period after the occurrence, signed with
explanation, etc.)
If void discrepancies are consistently being noted, follow-up to
see if the discrepancies relate to the same cashier. Track the
cashier number which is noted on the bottom of the sales
receipt and the number of voids per cashier.
Any restaurant noted as having questionable or an excessive
amount of voids should have voids audited at the restaurant
through the use of the X Electronic Journal. Review the latest
Cash and Sales Reports on the (insert day) prior to visiting the
restaurants.
Note the transaction numbers (on the sale, void and re-ring
receipts) and the reason provided on the back of the void, for
five voided transactions. This will allow you to determine the
validity of each void at the restaurant by comparing the reason
described on the back of each void to the detailed void and re-
ring transaction in the Electronic Journal.
− Verify that the Cash and Sales Report is signed and dated by
the Restaurant Manager.
− Note any material or consistent cashier cash variance, based

on the Cash and Sales Compliance testing performed at the
Regional Office, so proper follow-up (i.e., written warnings) can
be performed during the restaurant visit.
I-9s
Objective: To ensure that I-9 forms are processed and maintained in

compliance with Federal Law and Company Policy.
• Review of compliance of I-9 forms.
− Ensure that all employees listed on the Current Employee List

have I-9s. If Regional Management states that certain
employees have been terminated, ask them to produce the
termination supporting documentation.
− During your review of I-9s, look for the following as a possible

indication of a fraudulent card:
Scope: Review the X most recent employees and the X employees

hired just after (insert date), for every restaurant as listed on the
current employee roster. In addition, obtain the number of employees
who are required to have I-9s, by the restaurant, to extrapolate
potential audit risk.
◦ Social security/alien registration cards appear to be

typewritten, name does not coincide with the name stated
on the I-9 (e.g., spelling)
◦ The entry date into the US on the Resident Alien Card is
subsequent to (insert date)
◦ Temporary alien or work authorization card does not have
consistent typeset and/or has an expiration greater than two
years.
◦ Social security numbers that begin with an “X”.
− Verify that a system to track any expiring document (i.e., work

authorization card, temporary alien registration card) is in
place.
Minors
Objective: To ensure all minors are working within Federal and State
regulations.
Scope: Review of all minors (under 18) as listed on the current

employee roster.
• Review Local, State and Federal Laws on the employment of

minors. Identify the following by using the Employee List:
− Employees under the age of 18 for further investigation of

compliance with State Labor Laws and maintenance of work
permits during the restaurant visits.
• $X-$X (depending on the teen’s age) for each worker under 18

who performs certain “hazardous” duties, such as operating a food
slicer.
• $X minimum for each illegally employed minor who suffers a

serious injury resulting in lost work time.
• $X-$X for each illegally employed minor who suffers a permanent

disability.
• $X for an illegally employed minor who suffers fatal injury. For

each violation of the child labor provisions, employers may be
subject to a civil money penalty up to $X.
• Is Regional Accounting’s system for tracking expired work permits

adequate?
Payroll
Objective: To ensure all payroll transactions are authorized,

complete, accurate and substantiated.
Scope: Review
• All employees who worked overtime and/or who have different pay
rates (i.e., food server, cook, dishwasher) and
• A sample of food servers where the tip credit allowance is used.
Different employee pay rates can be verified with the Payroll
Register. On a judgment basis, review the remaining timecards. In
addition, pay particular attention to those restaurants noted with
labor productivity variances from the guideline.
• Obtain the most recent Payroll Register, timecards or Employee

Sign Off Report, and review for the following:
− Trace hours worked per timecard to hours worked per Payroll

Register and recalculate when deemed necessary.
− Review all overtime timecards to ensure that overtime is in
compliance with local, state and federal policies.
− Where the TIP credit is used, ensure that the employees are
reporting enough tips to reach the respective minimum wage
and that FICA is being paid on the minimum wage amount.
Request from Payroll, the Minimum Wage Report for the respective
audited payroll period(s). This report reveals all tip credit employees
who did not report enough tips to reach the federal minimum wage.
For these employees, ABC was required to pay additional wages.
− Review timecards for the employees and manager’s

signatures. If the Employee Sign Off Report is used in place of
timecards, verify that both the employees and managers have
signed the report.
− Compare employees on the Current Employee List to the

employees on the Payroll Register:
◦ Follow up on all differences
◦ Identify termed employees who may still be listed as active

and for whom insurance benefits are still being paid
− Timecard adjustments should be made through the time clock;
however, if manual/handwritten adjustments exist on the
timecards, the adjustments should be signed off by the
restaurant manager and employee (recalculate manual
additions of employee hours).
− Ensure that the employee who worked X or more hours clocks

out for a minimum of X minutes (break) in accordance with
state law, if applicable.
− Employee hours worked at different ABC locations should be

accumulated and submitted by their assigned home
restaurants.
− Observe employees on the Payroll Registers who have not

worked in the last pay period and follow-up with the Regional
Accountant for explanations.
− Review timecards for employees clocking in or out X to X

minutes early or late to receive a quarter of an hour extra pay.
• Overtime
− (Insert state) overtime

◦ After X hours worked in one day.
◦ After X hours worked in one work week.
◦ For the first X hours worked on the X day worked in one
work week.
Exception: No overtime pay is required for an employee who works X
days in one work week, does not exceed a total of X hours in the
week and does not exceed X hours in any one work day.
− (Insert date) double-time
◦ After X hours worked in one workday

◦ After X hours worked on the X day worked in a work day
• Review Account X analysis for extremely high amounts and

extremely low labor costs as a percentage of sales.
• How do the Regional Accountants handle unclaimed payroll

checks? Research for proper procedure.
Inventory
Objective:
• To verify inventory G/L account balances,
• To ensure inventory count sheets and reports are complete,
accurate and timely, and 3) to ensure valuations are accurate.
Scope: Review period end week’s Ending Inventory for all

restaurants. Pay particular attention to those restaurants noted with
excessive inventory and high food costs as a percentage of sales.
Note: High food costs or inventory shortages can be a warning sign

that orders are not being rung-up on the registers.
• Review the Ending Inventory Count Sheet for unusual items and
reasonableness (closely review crossed out or manual changes
on the Inventory Count Sheet).
• Verify that the same unit costs of the same inventory items apply
to the other restaurants in the same market.
• Agree the Weekly Inventory Count sheet generated by the

restaurants to the Inventory Journal Print generated by the
Regional Accountant.
• Trace unit costs for X high unit costs items to vendor invoices.
• For all restaurants tie the most recent period end Inventory
Journals to the corresponding G/L trial balance for three G/L
accounts: (meat), (seafood), (grocery).
• If there are any unusual manual additions to the Ending Inventory

Count Sheet, verify that these inventory items are approved.
Bank Reconciliation
Objectives:
• To verify cash and credit card G/L account balances,
• To determine the completeness of cash receipts, and 3) to
determine the accuracy of processing and summarization of cash.
Scope: Review all restaurant depository bank reconciliations and

credit card reconciliations for the most current period.
• Tie out the bank reconciliations to the G/L and bank statements.
• Clerically test X% of the bank reconciliations.
• Trace transfers to a subsequent bank statement or validated

deposit slip.
• Ensure that bank reconciliations are completed on a timely basis

(i.e., by the subsequent period end) and that reconciling items are
not more than X periods old).
• Follow up on any unusual or excessive reconciling items.
• Follow up on all reconciling items.
• Are bank analysis charges in line for all restaurants within the
market? Review unusually large amounts of bank service charges.
• Are restaurants only making one deposit per day? (i.e., completing
more than one deposit slip and only going to the bank once per
day). Incremental charges are incurred for each deposit.
• Review for unreasonably large, excessive (greater than one day of

sales) residual balances in the depository accounts. Excess cash
noted on the bank reconciliations (more than X days of deposits)
could be a sign that the managers are not calling X on a daily
basis. Therefore, cash is not being transferred timely.
• Review the bank statements to ensure:
− At least one deposit is credited each business day. Those

restaurants which have Armored Car pick-up will not have their
deposits picked on Sunday’s and holidays. Therefore, the
deposits occurring on these specified days will not be credited
the next business day.
− Every deposit is debited or transferred by the wire transfer

company on the next business day (for non-state banks), and
the amount credited equals the amount debited.
• Review for proper work paper techniques (i.e., dated, signed and
readable).
Departmental Expenditure Review
Objective: To determine
• The accuracy and summarization of purchases,
• Completeness of cash disbursements, and
• If liabilities are reported on a timely basis.
Scope: All restaurants, Regional Office, Maintenance Department

and other Market related cost centers.
• From the Departmental Expenditure Report prepare a listing of all

unusual accounts payable disbursements (e.g., employee names,
invoices charged to the wrong account, invoices per restaurant
above the region’s norm). Have the invoices pulled and review for
propriety.
• Review X “non-XYZ” vendor invoices per restaurant from the most

current including Maintenance cost center, if applicable.
− Determine if the invoices are properly approved.
− Determine if the invoice amount, number and items agree to

the X Report.
− Determine if discounts were taken.
− Foot the prices and the invoice to determine if correct amounts

were charged.
− Check for propriety and legitimacy.
− Determine if the vendors are paid on a timely basis.
• Review X “ABC” distributor invoice per restaurant to ensure that

ABC is not paying sales tax on times which are being resold to
customers. Items for ABC’s end use (i.e., janitorial and paper
goods) are taxable.
• Discuss unusual items with the Market VP and Market Manager.
Approved Vendors Review
Objective: To ensure that the restaurants only order products from

authorized vendors.
Scope: All restaurants
• Review the food product purveyors on the Unauthorized Vendor

Report. Confirm that all vendors are authorized. Follow-up on all
unapproved vendors with the Corporate Purchasing Department.
• List all unauthorized vendors being used and prepare a matrix

detailing products and unit cost. Determine how the unauthorized
vendor was set-up and is being paid.
• Confirm internal controls, for vendor approval (vendor set-up)

policy, are in place and operating effectively.
Cash (if there is a checking account or petty cash exists)
Objective: To verify and agree cash balances to G/L account X.
• Review disbursements for any unusual items, including payments

to active employees, software purchases and any regular and
frequent vendors that are paid out of petty cash. Follow-up on any
exceptions.
• Perform a cash audit on the Petty Cash Account using the Cash
Count Worksheet.
• Look for any unusual deposits or contributions (e.g., rebates from

vendors).
Are all petty cash disbursements evidenced by supporting

documents and do they have proper approval?
• Ensure petty cash is reimbursed according to Corporate policy

and procedures.
• Perform a have/need analysis of all cash accounts.
• Verify that proper segregation of duties exists between the

disbursements of cash and the maintenance of cash disbursement
records.
Paper flow
Objective: To identify opportunities to streamline paper flows.
Scope: All restaurants, Regional Office, Maintenance Department

and other market related cost centers.
• Evaluate the flow and coordination of all filed and published

information.
• Review the reproduction and duplication of data (i.e., financials

and other reports).
• Evaluate the paper retention policy.
• Evaluate the methods of obtaining data from the field and regional
level for purposes such as marketing, forecasting, etc.
• Identify unnecessary/not used paper flow throughout the Market,

noting the reason paper flow is not used/unnecessary.
Payroll Verification Logs
Objective: To ensure payroll verifications are being performed in

compliance with Company policy.
Scope: One payroll verification log from each restaurant.
• Confirm that annual restaurant payroll verifications take place in

accordance with written policy and review at least one payroll
verification log per restaurant.
• Market Managers are responsible for conducting payroll

verifications at least once per year at each restaurant to eliminate
the exposure of ghost employees. The procedures are as follows:
− Does each Market Manager clerically test and agree the

employee paychecks to the Payroll Register?
− Does each employee present a valid picture ID to the Market

Manager and sign the Verification Log before the Market
Manager releases the payroll check?
− Does each Market Manager properly follow-up on any

unclaimed payroll checks or missing signatures to ensure that
the employee actually exists?
− Determine, through a discussion with the Market Manager (s),

what procedures are utilized and what controls exist while
performing payroll verifications (e.g., are Market Manager’s
monitoring whether any employees are terminated from the
time the Market Manager disclosed a verification would take
place).
Accounts Receivable
Objective: To substantiate and evaluate all receivables
Scope: All restaurants with receivables
• Obtain an account analysis or aging for all accounts receivable.
− Assess the collectability of these accounts. What is the billing

and collecting procedures?
− Are balances aged?
− Review for unusual items.
− Tie out to the G/L.
− Review the supporting documentation.
− Clerically test.
− Gift Certificates
Objective: To verify and agree gift certificate balances to G/L account

X.
Scope: All restaurants.
Review the Gift Certificate (GC) procedures and tracking and perform
the following steps:
• Beginning with the GC account analysis, perform a roll

forward/back to determine the GC balance for each restaurant
(X% scope). Note all differences between physical GC counts
performed during the restaurant visits and Regional Accounting’s
analysis. Those restaurants not visited should be telephoned for a
physical GC balance.
• Ensure that adequate procedures and efficiencies are

implemented in the accounting and handling of gift certificates.
• Confirm that a system of internal controls over the physical

security and accounting of gift certificates is in place and operating
effectively.
• What procedures are followed to ensure gift certificates are

properly voided after they are redeemed?
Review the Market Manager’s Quarterly Cash Inspection Reports for

the most recent quarter and note whether the District Manager has
followed up on restaurant deficiencies. Ensure that the correct
inspection form is being used. Also note any unsatisfactory audit
issues and the inspection form that reoccur as an issue in the current
audit.
Determine if any equipment has been sold. If so, how was the cash
handled? How was it recorded in the General Ledger?
The following list of items must not be substitutes:

Description Vendor
• (insert description) (insert vendor)
The above items are felt to be of such significance to the overall
ABC concept that their specifications must be adhered to by both
Company operated and franchised restaurants.
Upon completion of the previously noted audit steps, compile a
draft report to determine the restaurants with possible exposure to
areas for restaurant audits. A scope of at least X percent – X
percent of the restaurants should be visited, if any specific
restaurants in the market appear to have a sever lack of controls
noted during your review at the regional office, you should
increase the scope to allow a more accurate coverage.
Post Audit
Prepare a draft of the report for the closing conference. Note any
restaurant(s) which had deficiencies in most audit areas.
Conduct a closing conference with the Market VP, Market Manager

and the Regional Accountant to answer any questions.
Upon your return to the Corporate Office, review the report for
distribution to the Market VP for their formal response. Review the
report for the following:
• Spelling, punctuation, tense
• Consistent capitalization and non-capitalization
• Proper dates
• Correct page numbers and exhibits
• Consistent titles/names throughout the report
• Proper titles, closing conference attendees
• Distribution correct
• Charts aligned and centered
• Paragraph alignment
• Underlining, bolding, italicizing consistent
• All exhibits agree and tie to report
• Restaurant numbers in order
Prepare the Executive Summary for (insert name).
Prepare work papers and files by including the following:
• Name and location of the market audited.
• Period of time the audit took place and audit team.
• Auditor’s initials, date, source and scope on the work papers.
• Second review of the work papers and report draft.
• Disclosure of all audit points.
• Complete references of work papers and reports.
Revise the work program each time a new audit point or step has
been located or if changes have occurred in the field.
Send an Audit Survey to the auditees for comments.

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RESTAURANT REGIONAL OFFICE INTERNAL CONTROL

AUDIT WORK PROGRAM

PROJECT TEAM (LIST MEMBERS)

Project Timing Date Comments

Report Issuance (Local)

Report Issuance (Worldwide)

Time Project Work Step Initial Index

Set-up a disk sub-directory for the audit. Title the sub-directory by

Prior to your audit trip contact the Controller, Supervisors, Corporate

Determine key exposure areas (i.e., operational scores, change in

Information to and from the Regional Accountant the week prior to

• Ensure the Regional Accountant will be available for assistance

• Obtain a listing of recent Restaurant Managers for introduction

• Obtain a complete listing of restaurants and verify that all

• Request a listing of the various depository bank charges/fees that

• Determine the Region’s system for filing I-9s. (i.e., by Restaurant,

• Request the most current period’s X Daily Cash Report and

General Information in Office.

• Review all policy and procedure changes, as well as specific laws

• Review the ABC Restaurant Performance Report, prepared by

• Obtain a copy of the Trial Balance by Restaurant, Regional Office,

Reports downloaded from the system.

• Current Employee List

• General Ledger balances for:

• Download a listing of all year-to-date journal entries posted by the

• Prepare the Introduction Letters and have them signed by (insert

• Prepare the following employee lists from the current employee

− I-9 list detailing District, Restaurant, Name, Social Security

• Obtain an Unapproved Vendor Report detailed by market and

• Obtain the current labor productivity report from Financial

• Determine the Senior Discount Policy from the Market Manager.

Send out the Pre-Audit Survey to the Market Manager.

Regional Office Internal Control Review

Cash and Sales Report Review

• Cash and Sales Analysis

Objective: To determine any material trends in certain Cash and

− Prepare analysis of:

• Actual cash variance per tender transactions (net of any accounts

• Detailed Compliance Testing

Objective: To ensure that all transactions are authorized, complete,

− Agree all weekly “opening” and “closing” activity readings, also

• Pay particular attention to those restaurants noted in the Cash and

• Agree all paid outs to a receipt, signed and approved by

• Verify cash paid outs between $X and $X (excluding alcohol and

• Verify cash paid outs between $X and $X are approved by the

− Review the bank statement for the corresponding period to

• Verify that the confirmation/control numbers from the wire transfer

− Note any material or consistent cashier cash variance, based

Objective: To ensure that I-9 forms are processed and maintained in

• Review of compliance of I-9 forms.

− Ensure that all employees listed on the Current Employee List

− During your review of I-9s, look for the following as a possible

Scope: Review the X most recent employees and the X employees

◦ Social security/alien registration cards appear to be

− Verify that a system to track any expiring document (i.e., work

Scope: Review of all minors (under 18) as listed on the current

• Review Local, State and Federal Laws on the employment of

− Employees under the age of 18 for further investigation of

• $X-$X (depending on the teen’s age) for each worker under 18

• $X minimum for each illegally employed minor who suffers a

• $X-$X for each illegally employed minor who suffers a permanent

• $X for an illegally employed minor who suffers fatal injury. For

• Is Regional Accounting’s system for tracking expired work permits

Objective: To ensure all payroll transactions are authorized,