INTERNAL CONTROL QUESTIONNAIRE

LEGEND:

SA – Strongly Agree
A – Agree
D – Disagree
SD – Strongly Disagree
N/A – Not Applicable

General Cycle
Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

G1. There is a formal organizational chart defining the
responsibilities of each employee in the company.
G2. There is a current and updated chart of accounts.
G3. The following responsibilities are performed by
different people:
a. Preparing bills, recording payments from
customers, collecting amounts due and
following-up of unpaid accounts.
b. Ordering, receiving and accounting for
payment of goods and services to suppliers.
c. Hiring, distributing and recording of payroll.

Cash Disbursements Cycle

Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

Executing
CD1. All expenditures are approved by authorized
persons.
CD2. All invoices or requests for disbursements are
supported by appropriate receipts or documents
that indicate receipt of the goods or services.
CD3. All disbursements except for petty cash are
made by cheques.
CD4. Cheques are pre-numbered and all numbers are
accounted for.
CD5. Supporting documents for cheques are
cancelled properly to avoid duplicate payment.
Recording and Custody
CD6. Accounting personnel are prohibited from
signing checks.
CD7. Checks are recorded in numerical sequences.
CD8. Disbursements are recorded properly and on a
timely basis.

Cash Receipts Cycle

Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

Executing
CR1. Cash collections are deposited intact on a daily
basis.
CR2. Cash sales are controlled by cash registers or
pre-numbered cash receipts forms.
CR3. All shortages or overages are investigated and,
 to the extent possible, corrected.
Recording and Custody
CR4. Physical security safeguards are maintained
where cash is stored and processed.
CD5. Periodic independent counts are made to cash
on hand.

Sales and Receivables

Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

Sales
S&R1. Price lists are used, reviewed and approved
periodically by an authorized person.
S&R2. There is a policy for credit approval.
S&R3. All sales orders are recorded on pre-numbered
forms.
S&R4. Sales invoices are compared to shipping
documents.
S&R5. Sales are recorded on a daily basis.
Receivables
S&R6. Official receipts are issued for all services or
goods provided to individuals or other
governmental units.
S&R7. Subsidiary accounts receivable and notes
receivable records are maintained and
reconciled at least monthly with the general
ledger control account.
S&R8. Statements of account balances are distributed
at least once a month.

Purchases and Accounts Payables

Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

Purchases
P&AP1. Requests for quotations are sent to suppliers
to ensure the best price for raw materials and
supplies.
P&AP2. Purchase orders or contracts are required to
be approved by authorized personnel before
issuance.
P&AP3. Purchase orders, receiving reports, and
vendor’s invoices are matched in preparing
vouchers.
P&AP4. Receiving reports for goods purchased are
submitted after an independent count.
Accounts Payables
P&AP5. Payments are on original invoices only – not
copies or faxes, otherwise they may be paid
more than once.
P&AP6. After payment is made, original invoices are
stamped or perforated to prevent reuse..
P&AP7. The person who approves new vendors is
different from the person responsible for the
payment process..
P&AP8. Vendors’ billings are checked more than once
a month.
P&AP9. Rapid increase in purchases from the same
supplier is checked.
 Inventory
Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

I1. There is a formal organizational chart defining the
responsibilities of ordering, accepting, approving,
processing and recording of the inventory.
I2. Goods are stored in locked areas with restricted
access.
I3. There are periodic independent comparisons of
inventory records with goods on hand.
I4. Steps are documented to ensure that goods
received are accurately counted.
I5. The person receiving the goods signs the
requisition as evidence of receipt.
I6. Receiving reports are used to record purchases tp
the perpetual inventory records.
I7. A physical inventory is taken at least annually.
I8. Adjustments to inventory records are approved by
a properly designated official.

Payroll
Control Policies and Procedures

INTERNAL CONTROL MEASURE (ICM) SA A D SD N/A

P1. Hirings are authorized by personnel department.
P2. Wage rates are determined by contract or legal
requirements and approved by a personnel officer.
P3. A time clock or other electromechanical system is
used.
P4. The time worked by hourly employees is always
approved by supervisory personnel.
P5. Payroll checks are signed and distributed by
treasurer’s office personnel.
P6. Terminated employees are interviewed as a
physical check on departures and as a final review
of the termination settlement to ensure that all
keys, equipment, credit cards, etc. are returned by
the terminating employee.