Exhibit 3-6

Abernethy and Chapman

INTERNAL CONTROL STRUCTURE- PRELIMINARY ANALYSIS
Client: The Lakeside Company
System: Revenue and Cash Receipts Cycle Distributorship Cash Receipts
Date:
Prepared By:
List each document found in this system, the number of copies, and whether it is prepared
internally or externally.
Sales Invoice Five Copies
Bill of Lading Five Copies

Answer each of the following questions. For each no answer, comment on whether an internal
control weakness is indicated.
Question
1. Is each document
within this system
pre-numbered?
2. Is the authority for
completing each
document clearly
delineated?
3. Are all documents
subsequently
reviewed by an
independent party
within the company?
4. Are appropriate
procedures clearly
spelled out for
completing and
reviewing each
document?
5. Is the recordkeeping function
independent of the
custody function at all
points throughout the

YES

NO

Comment

Received by :
Treasurers office
Recorded by:
Controllers Office

system?
6. Are all
mathematical
computations
independently
verified?
7. Does recordkeeping begin at the
origin of the
transaction?
8. Are all transactions
authorized?
9. In the space below, any other specific internal control features that have been built into this
system.

10. In the space below, indicate any other specific internal control weaknesses that appear to be
present in this system.