Operational Analysis Questionnaire

Accounts Payable

Document Control

Change Record

Date Author Change Reference

Reviewers

Name Position

No. Questions Answers

1 General
1.1 Overview
1.1.1 Describe at high-level your Accounts
Payable processes

1.2 Supplier Management

1.2.1 Do you have single or multiple bill-to
locations?
1.2.2 What is the basis for your vendor
category breakdown?
1.2.3 Do you have a single consolidated vendor
list?
1.2.4 Do you have vendors listed in your files
multiple times?
1.2.5 How do you handle vendors with multiple
addresses?
1.2.6 Do you have preferred vendors? How do
you identify them?
1.2.7 How do you handle vendor numbering?
1.2.8 Do you put employees as vendors? If
not, how do you pay employee
expenses?
1.2.9 Do you have a standard naming
convention for vendors when the name is
like "John Smith"? Is it "Smith John" or
"John Smith"?
1.2.10 Do you have shared vendors between
companies? How many?
1.2.11 What type of vendor analysis do you
perform?
1.2.12 Are vendors categorized for reporting
purposes?
1.2.13 Are vendors categorized for financial
tracking purposes?
1.2.14 Is there a requirement to define vendor
sites which can receive payments and
sites which cannot receive payments?
1.2.15 Who adds and maintains vendor in the
system?
1.2.16 How many “active” vendors are there?
(Let’s assume “active” is any vendor with
at least one invoice in last 12 months.

1.3 Employees
1.3.1 Is there a requirement to process
employee expense reports?
1.3.2 Is there a standard employee expense
claim form?
1.3.3 What is the current process to generate
expense payments to employees?
1.3.4 How frequently are employee expense
claims processed?
1.3.5 How many employee expense claims are
processed?
1.3.6 Are these expense claims assigned a
special pay priority - high or low?
(Before/after other vendor payments for
example.)
1.3.7 What is the current procedure for
employee advances?
1.3.8 How are these reconciled when the
expense claim is submitted?
1.3.9 Do your employees have company credit
cards?
1.3.10 How are company credit cards handled?

2 Invoice Processing
2.1 Purchase Orders
2.1.1 Do you wish to prevent purchase orders
being sent to Vendors that are on hold in
Accounts Payable?
2.1.2 Are there non-payment vendor sites, not
defined in Accounts Payable, that need to
be defined for Purchasing to order
goods/services?
2.1.3 Are the non-payment vendor sites, not
defined in Accounts Payable, that need to
be defined for Purchasing, "RFQ Only"
sites?
2.1.4 Are there payment terms, not defined in
Accounts Payable, that need to be
defined for Purchasing to order
goods/services?
2.1.5 Will tax names and rates, defined in
Accounts Payable have to be revised in
any way?

2.2 Invoicing
2.2.1 Do you require batch control to manage
invoice entry?
2.2.2 Who enters invoices and how often?
2.2.3 Do you receive invoices at a central
location?
2.2.4 How do you physically store invoices
once entered into the computer?
2.2.5 Are invoices billed to distinct companies,
cost centers or other?
2.2.6 How many invoices per period do you
enter?
2.2.7 Do you have security requirements on
who can enter data (invoice processing,
payment processing, and check
processing)?
2.2.8 How are invoices identified (numbered)?
2.2.9 How many liability accounts do you use?
2.2.10 Can you identify any frequently used
expense distributions within your current
system (for example, rent or telephone
payments)?
2.2.11 Do you have any recurring invoices?

2.3 Matching and Approval

2.3.1 Do you match your AP invoice with the
PO's?
2.3.2 How do you match purchase order
information to AP invoice information?
2.3.3 How do you match vendor information to
your fixed assets system when
purchasing assets?
2.3.4 Is there a requirement to match invoices
to related purchase orders?
2.3.5 Will some invoices never have purchase
orders?
2.3.6 Should invoices be matched completely,
partially or both?
2.3.7 Do you perform 2-, 3-, or 4-way
matching of invoices?
2.3.8 Do you currently have any tolerance
levels for matching? (Price Tolerance,
Quantity Ordered Tolerance, Quantity
Received Tolerance, or Tax Tolerance?)
2.3.9 Would you like to approve your invoices
on-line, by batch or have both options?
2.3.10 What is the internal approval process for
an invoice in your organization at
present?
2.3.11 Are there situations where an invoice
needs to be placed on hold and then
manually released?
2.3.12 Describe the approval process when
invoices need to be placed on hold and
manually released?
2.3.13 Where an invoice needs to be placed on
hold and then manually released, can
these invoices be "posted" to the General
Ledger?
2.3.14 Do you accrue your receipts to the
General Ledger?

3 Payment Processing
3.1 Payment Processing
3.1.1 What are the requirements for reporting
tax payments?
3.1.2 How do you record taxes within the GL?
3.1.3 Is there a requirement to support
multiple bank accounts?
3.1.4 Is there a requirement to support foreign
currency bank accounts?
3.1.5 What disbursement (document) types are
currently processed through these bank
accounts?
3.1.6 How are your current payment terms
structured?
3.1.7 Do you use percentage due or amount
due?
3.1.8 Are due dates calculated based on a
specific day of the month or on a number
of days from the payment terms date?

3.1.9 Is there a provision for discounts within

the current payment terms?
3.1.10 How are discount dates calculated -
based on a specific day of the month or
on a number of days from the payment
terms date?
3.1.11 Is there a requirement to use multiple
discount levels at present or in the
future?
3.1.12 How many different sites issue checks?
3.1.13 How many checks do you write/produce
per period?
3.1.14 Is there a requirement to use computer
generated checks?
3.1.15 What is your policy to cancel checks?
3.1.16 Is there a requirement to use Electronic
Funds Transfers?
3.1.17 Is there a requirement to use Wire
Transfers?
3.1.18 Is there a requirement to process
Automatic Payments?
3.1.19 Is there a requirement to process Manual
Payments? If so, is a separate bank
account used?
3.1.20 Is there a requirement to process Partial
Payments?
3.1.21 Is there a requirement to process Pre-
Payments?
3.1.22 Is there a requirement to process
Recurring Payments?
3.1.23 Is there a requirement to process ‘Quick
Checks’?
3.1.24 Do you have a priority system for
payments?
3.1.25 Would you use a priority system for
payments?
3.1.26 What is your current payment cycle?
(How often do you print checks?)
3.1.27 If recurring payments are used, what is
the normal period cycle for these
payments?
3.1.28 Are all invoices paid in local currency?
3.1.29 Is/will there be a requirement to use
multiple currencies?
3.1.30 Do check payments have to be approved
before they are run?
3.1.31 Do you have a minimum or maximum
payment amount per check?
3.1.32 Do you have a minimum or maximum
payment amount per run?
3.1.33 What is the current check layout for
computer generated checks? How many
formats do you have?
3.1.34 Do you print the check number on the
check/remittance or is it pre-printed?
3.1.35 Should a remittance advice note be
produced, and when?
3.1.36 How should an overflow situation be
handled?
3.1.37 Is there any special sequencing of checks
when printing?
3.1.38 Is there a dedicated printer for checks?
3.1.39 What type of printer is used for checks?
3.1.40 Where are the pre-printed checks stored?

3.1.41 Is there a requirement to restrict the

access to the check printing function?
3.1.42 What are the policy/procedures for
handling stop payments?
3.1.43 What are the policy /procedures for
handling void payments if they have
been recorded?
3.1.44 What are the policy /procedures for
handling void payments if they have not
been recorded?

3.2 Banks/Cash Management

3.2.1 Who do you bank with. List all of your
bank accounts and their purpose.
3.2.2 Describe your cash management (bank
reconciliation) process

4 Period Processing 
4.1 Open/Close Periods
4.1.1 How often do you "post" information to
your General Ledger?
4.1.2 Do you use Cash or Accrual Based
Accounting?
4.1.3 Do you post (or wish to post) in detail or
in summary to the General Ledger?
4.1.4 When do you start your AP close?
4.1.5 Do you have any documentation on your
AP close? Please provide.
4.1.6 Do you allow posting invoices back to
prior periods?
4.1.7 If you have multiple organizations, do
they all close at the same time or
separately?

5 Reporting
5.1 Reporting
 5.1.1 For the purpose of Invoice Aging Reports,
what aging periods are currently in use?

5.1.2 Is there a requirement to produce ‘Key

Indicators’ Reports to review productivity
and pinpoint problem areas?

5.1.3 Is there a need to define any additional

aging periods?
5.1.4 Please enclose a list of all reports used in
the Accounts Payable area Please
annotate the report list with each report's
name/number, description, the type of
users, frequency on which these reports
are generated.

6 Miscellaneous
6.1 What else needs to be discussed?
6.1.1 Other Applications used by AP.
6.1.2 Expede Interface

Issues and Action Items

Revisit
 Operational Analysis Questionnaire
Accounts Receivable

Document Control

Change Record

Date Auth Version Change Reference

or

Reviewers

Name Posit
ion

No. Questions

1 Customer Management
1.1 Customer Information
1.1.1 Who maintains customer information?
1.1.2 Do you default other information (payment terms, shipping, tax) at the
Customer Level?
1.1.3 Can this information be changed and updated at the time of invoice entry?
1.1.4 Do you have a central registry of customers which supports more than one
business units?
1.1.5 What types of customers do you have?
1.1.6 How do you group your customers for credit limits/credit checks?
1.1.7 How do you group your customers for statements?
1.1.8 How do you group your customers for interest charges for late payments?
1.1.9 How do you group your customers for payment rules?
1.1.10 How many customers do you have?
1.1.11 What type of payment terms do you provide?
1.1.12 Do you provide split term payment terms?
1.1.13 Do you provide discount payment terms?
1.1.14 Do you use customer agreements/contracts to manage specific price lists?
1.1.15 Do you use customer agreements/contracts to manage specific discounts?
1.1.16 Do you use customer agreements/contracts to manage specific payment
terms?
1.1.17 Do you use customer agreements/contracts to manage specific invoicing
policies?
1.1.18 How do you track customer contact people?
1.1.19 Do you automatically number new customers as they are created?
1.1.20 Do you automatically number customer business purposes as they are
created?
1.1.21 Do you track and record relationships between customers for example,
franchises, subsidiaries, and so on?
1.1.22 Do you create reciprocal customer relationships whenever you create a
relationship between customers for tracking purposes?
1.1.23 Do you send customer statements?
1.1.24 Do you have multiple "remit to" addresses?
1.1.25 How are multiple "remit to" addresses determined for each customer?
1.1.26 What credit information is tracked for each customer?
1.1.27 Do terms and conditions of customer agreements and/or payment terms
change based upon the status of their accounts?
1.1.28 How do you maintain/audit your customer data?
1.1.29 Do you have a prospect system separate from the receivables customers?
1.1.30 Who has access to your customer database?
1.1.31 Do you have the same customers repeated multiple times in the data files or
the same customer for different operating units?
1.1.32 How do you track customers with different or multiple bill-to and ship-to
addresses?

1.2 Sales
1.2.1 How do you maintain and assign salespeople to customers?
1.2.2 Do you track Sales Territory Information?
1.2.3 How is Sales Territory Information for tracking purposes derived? (for
example, customer, salesperson, and so on)
1.2.4 Does your sales order cycle involve product shipment?

2 Billing Process
2.1 Invoicing
2.1.1 Please describe you invoicing process.
2.1.2 How do you link the specific products/services that you sell with general
ledger accounts at invoice entry?
2.1.3 Do you regularly invoice customers for the same items?
2.1.4 Do you use standard invoice lines with default pricing and default accounting
information?
2.1.5 Do you ever use invoice forms and/or the invoice entry process for
transactions other than billing customers?
2.1.6 Do you use Customer Account Credit Memos?
2.1.7 How are Customer Account Credit Memos used? Why are Customer Account
Credit Memos used?
2.1.8 What items appear on Customer Account Credit Memos?
2.1.9 Do you enter invoices in batches? How are batch invoices defined?
2.1.10 Do you use batch controls, such as counts and amounts?
2.1.11 What are the units of measure you use when you bill customers for products
and/or services?
2.1.12 Do you require taxes to be established for use when preparing invoices?
2.1.13 Do you validate the tax rate against a Customer’s Ship To address when
preparing invoices?
2.1.14 Do you have any subsidiaries that bill customers in a foreign currency?
2.1.15 Are there any other foreign currency issues regarding invoice generation?
2.1.16 How many invoice types do you have?
2.1.17 How frequently do you invoice your customers?
2.1.18 How do you number your invoices?
2.1.19 How do you receive notice to create/generate an invoice to bill a customer?

2.2 Project Billing

2.2.1 Typically, how many project-related payments do you receive a month?
2.2.2 Do you use standard invoice lines with default accounting information?
2.2.3 Do you have any subsidiaries that bill customers in a foreign currency?
2.2.4 Are there any other foreign currency issues regarding invoices and/or
payments?

3 Payment Processing
3.1 Payments
3.1.1 Describe your cash applications process.
3.1.2 Do you enter your payments in batches? How are batches identified?
3.1.3 How do your customers generally pay invoices? (Single check, single
invoice/single check, multiple invoices/multiple checks)
3.1.4 Do you use batch control counts and amounts?
3.1.5 Do you use more than one bank account and/or cash account?
3.1.6 Do you have customers who pay other customers’ invoices?
3.1.7 Do you use lockboxes?
3.1.8 How many lockboxes do you use?
3.1.9 Do you receive deposits and/or prepayments?
3.1.10 Do you receive non-customer related payments?
3.1.11 How are non-customer related payments accounted for?
3.1.12 How do you handle payments without remittance information?
3.1.13 What are your policies and procedures about adjusting payments?
3.1.14 What are your policies and procedures about reversing payments?
3.1.15 How many payments do you receive in a month?
3.1.16 How many checks are returned by the bank in a period?
3.1.17 What are the reasons for checks being returned by the bank?
3.1.18 Who applies cash?
3.1.19 How is cash applied?
3.1.20 Do you create charge backs (Debit Items) for customer deductions?

3.2 Collections
3.2.1 How do you enter/manage a credit amount owed to the customer by your
company?
3.2.2 How do you enter/manage a credit amount owed to your company by the
customer
3.2.3 What does your aging look like?
3.2.4 Do you send dunning letters to customers?
3.2.5 Do collectors actively call customers on delinquent items?
3.2.6 What is the process for tracking actions to collect on delinquent accounts?
3.2.7 Is the process for tracking actions to collect on delinquent accounts
automated?
3.2.8 Do terms and conditions of customer agreements and/or payment terms
change based upon the status of their accounts?
3.2.9 Do you monitor performance of your collectors?
3.2.10 What metrics are used to monitor collections performance?
3.2.11 Do you do cash-flow requirements forecasting?
3.2.12 What sort of buckets do you use for cash-flow requirements forecasting? (For
example, 30, 60, 90...)

3.3 Reconciliation
3.3.1 Do you reconcile payments with the bank?
3.3.2 How do you reconcile payments with the bank?
3.3.3 How often do you reconcile payments with the bank?
3.3.4 How are bank reconciliation errors handled?

4 Accounting and Period End Processing

4.1 Revenue
4.1.1 Do you ever recognize revenue from a single transaction over multiple
periods?
4.1.2 When do you recognize revenue?
4.1.3 How many General Ledger revenue accounts do you distribute to?
4.1.4 When do you create or recognize outstanding receivables?
4.1.5 Do you distribute earned and unearned revenue? What are the GL accounts?
4.1.6 Do you have unbilled receivables?
4.1.7 Is revenue assignment associated with sales people information?
 4.1.8 Do you assign non-revenue credit to sales people?
4.1.9 Do you have special revenue recognition for long-term agreements?

4.2 Period Close

4.2.1 What is the process to open and close AR periods?
4.2.2 How are adjustments to closed periods handled?

5 Reporting
5.1 Reporting
Please enclose a list of all reports used in the Account Receivable
area Please annotate the report list with each report's
6 Miscellaneous
name/number,
6.1 What description,
else needs the type
to be of users, frequency on which
discussed?
these reports are generated.
6.1.1

Issues and Action Items

Answers
 Operational Analysis Questionnaire
Fixed Assets

Document Control

Change Record

Date Author

Reviewers

Name Position

No.

1
1.1
1.1.1
1.1.2
1.1.3

1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9

1.1.10

1.1.11

1.1.12
1.1.13
1.1.14
1.1.15

1.1.16
1.1.17

1.1.18
1.1.19
1.1.20
1.1.21
1.1.22
1.1.23
1.1.24
1.1.25
1.1.26

1.1.27
1.1.28
1.1.29

1.2
1.2.1

1.2.2

1.3
1.3.1
1.3.2

1.3.3

1.3.4

1.3.5

1.4
1.4.1
1.4.2
1.4.3
 2
2.1
2.1.1
2.1.2
2.1.3

2.1.4

2.2
2.2.1
2.2.2

2.2.3

2.2.4

2.2.5
2.2.6

2.2.7

2.2.8
2.2.9 
2.2.10

3 Depreciation and Period-End Processing 

3.1
3.1.1
3.1.2
3.1.3
3.1.4

3.1.5
3.1.6
3.1.7

3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5

4
4.1
4.1.1
4.1.2
4.1.3

4.1.4

4.1.5

4.1.6

4.1.7

4.1.8

4.1.9

4.1.10
Operational Analysis Questionnaire
Fixed Assets

Version Change
Reference

Questions Answers

Asset Setup
General
What system do you use presently to do your Fixed Assets?
What systems do you use to track and inventory your fixed assets?
Does your current system track asset possession by employee, department,
or cost center?
What property types do you use (Personal 1245, Real 1250, and so on)
How many different companies in your organization own fixed assets?
In what countries are your fixed assets located?
Who tracks financial and tax information in each country?
Explain the accounting structure and reporting methods used to consolidate
your asset cost and depreciation expenses?
Do you post your asset financial information in summary or detail to your
general ledger?
How many corporate depreciation books do you maintain? If more than one,
why?
How many different tax depreciation books do you maintain in each of your
companies? How are they used?
Do you adjust depreciation in your tax books?
Do you maintain any other types of depreciation or asset valuation books?
What are your capital budgeting requirements?
How often do you calculate depreciation for corporate accounting, tax, and
capital budgeting purposes?
How many fixed assets does Razorfish own? How are they numbered?
Do you need to track fixed assets that are not depreciated? What is your
expense/depreciation limit?
Do you track different information for different types of fixed assets?
What basic information about each asset do you store?
How do you number your fixed assets?
Do you have physical tags on your fixed assets?
Do you track leased assets?
What is your oldest date placed in service for your fixed assets?
Do you have standard depreciation methods for your fixed assets?
Do you associate your fixed assets with vendors?
Do you use multiple currencies when purchasing, depreciating, reporting or
posting financial information about your fixed assets?
Where are your fixed assets located?
How do you report property values for tax purposes?
Do you have special names for each location (aliases)?

Security
Do you have security requirements on who can enter data for Fixed Assets?
(for example, by company? by cost center?)
Do you have security reports on who can run Fixed Assets reports? (by
company, by cost center, and so on)

Asset Categories
How do you categorize your fixed assets now?
Are your asset categories unique for each combination of asset cost account
in your general ledger, depreciation method, useful life and prorate
convention?
Are fixed assets which use the same asset account in your general ledger,
ever split into more than one group for accounting or tax depreciation
purposes?
Do you group fixed assets which use different asset accounts for reporting
purposes?
Do you have a special name (alias) for each category?

Other
Which operations/processes do you want to streamline for Fixed Assets?
Which operations/processes do you want to eliminate for Fixed Assets?
Are there any time-intensive Fixed Assets operations/processes that need to
be addressed?
 Transaction Processing
Data Conversion
How is your corporate and tax information stored now?
Do you have your location information in electronic form?
What systems are you using to store asset, vendor, employee and location
information now?
What is the current accuracy of your asset information?

Transactions
How many fixed assets do you purchase each accounting period?
How often do you transfer large numbers of fixed assets from one person,
cost center, or location to another?
How often, and for what reasons, do you change fixed asset depreciation
method or life for a single asset?
How often do you change the useful life, depreciation method, or prorate
convention of all fixed assets in a category?
How many retirements do you do per period?
Do you amortize adjustments made in the prior period over the remaining
useful life of the asset or do you expense the catch- up depreciation in the
current period?
Do you want your fixed assets automatically added from your feeder
Accounts Payable system?
Do you ever retire fixed assets in the same period they were purchased?
How often do you perform physical inventories of your fixed assets?
Do you cycle count your assets?

nd Period-End Processing 
Depreciation
What are your prorate conventions?
What are your depreciation methods?
What are your useful lives?
How do you account for prior period additions, retirements or other
transactions in your general ledger?
Do you use ITC for any fixed assets still in service?
Do you depreciate leased items, or leasehold improvements?
Does any department or departments receive the depreciation expense for
assets used by another department? If so, do these expenses eventually get
redistributed to asset users?

Period Close
How do you close an accounting period for Fixed Assets?
Is the schedule to close an accounting period for Fixed Assets documented?
How long does it take to close an accounting period for Fixed Assets?
Is closing an accounting period for Fixed Assets a hard close or a soft close?
How are adjustments to closed periods for Fixed Assets handled?

Reporting
Asset Reporting
What are your monthly reporting requirements?
What business performance statistics do you monitor for Fixed Assets?
What are your Fixed Assets reporting requirements with respect to functional
vs. foreign currencies?
What are your Fixed Assets reporting requirements with respect to summary
or detail formats?
What reports do you currently generate to meet your Fixed Assets reporting
requirements? Provide examples of each. Include source (could be manual),
user, frequency, or number of copies.
Is there any Fixed Assets reporting requirement that your current set of
reports does not meet?
Are Fixed Assets reports standard across multiple Sets of Books, for
example, subsidiaries?
Are Fixed Assets reports standard across multiple levels within a Set of
Books, for example, divisions?
What account codes and/or descriptions are required on Fixed Assets
reports?
What Fixed Assets reports are grouped together on a regular basis and
printed in one print run?
Revisit
 Operational Analysis Questionnaire
General Ledger

Document Control

Change Record

Date Author Version

Reviewers

Name Position

No Question

1 General
1.1 About Your Business
1.1.1 What type of industry are you in?
1.1.2 What products and services do you provide?
1.1.3 Number of employees?
1.1.4 What business areas and/or operations are targeted for improvement?

1.1.5 Which of these business areas and/or operations is high, medium and
low priority?
1.1.6 Can you provide a systems flow diagram of connectivity between your
core business applications?
1.1.7 What is your organizational structure?
1.1.8 How many businesses are in Your Company?
1.1.9 What is the structure or relationships of these businesses?
1.1.10 On how many sites are these companies located? What are these sites?
1.1.11 Do all the locations have the same chart of accounts?
1.1.12 Do all the locations have the same calendar?
1.1.13 Do all the locations have the same functional currency?
1.1.14 Do you use more than one Set of Books?
1.1.15 Do all the businesses have assets?
1.1.16 Are assets assigned to cost centers.
1.1.17 What is your accounting calendar?

1.2 Security
1.2.1 Do you have any security policies around access to General Ledger? Is
this documented?

2 Financial
2.1 Chart of Accounts
2.1.1 What does your current chart of accounts look like?
2.1.2 Do you plan to have a new chart of accounts?
2.1.3 Are your account values in any order or range pattern?
2.1.4 What are the account parent or grandparent structures?
2.1.5 Do you use unique accounts to capture statistics?
2.1.6 Who is going to maintain the segment values once entered?
2.1.7 Is there a need for a mapping from an old COA to a new COA?
2.1.8 Are certain segment values only valid with specific other segment
values?

2.2 Consolidation
2.2.1 Do you require financial consolidations?
2.2.2 How often do you perform financial consolidations?
2.2.3 What is the COA mapping during the consolidation?
2.2.4 Do you perform consolidation between various businesses that use
different currencies?

2.3 Currency
2.3.1 Do you use multiple currencies in your business?
2.3.2 How many currencies do you use and what are they?
2.3.3 What is your policy on changing currency rates?
2.3.4 What is the primary currency you have?

2.4 Budget Preparation

2.4.1 Does Your Company prepare budgets?
2.4.2 What types of budgets do you prepare? (for example, revenue &
expenses, balance sheets, capital, project, and so on). Do you do any
budget allocations?
2.4.3 Do Your Company’s key performance indicators drive the budgets?

2.4.4 How many budgets do you prepare for an individual fiscal year?
2.4.5 Do you prepare more than one budget per Set of Books?
2.4.6 What is the range of accounting periods for each budget?
2.4.7 At what organization level (for example, cost center, division, or region)
do you budget?
2.4.8 Do budgets require approval? What levels of approvals are required?

2.4.9 How many budget "organizations" do you have (Budget Organization is

an entity, which “owns” the budget in Oracle General Ledger)?

2.4.10 What are the budget organizations and what is the convention or rule
2.4.11 behind
Have youtheir names? security procedures to prohibit access to certain
developed
2.4.12 budget organizations?
Will budget organization security be required in the future?
2.4.13 Do you create new budgets based on existing budgets (for example,
new budget = 10% decrease from previous budget)?
2.4.14 At what natural account level do you currently budget? Is this the same
level of detail as actuals are captured?
2.4.15 Is your budgeting process centralized or decentralized?
2.4.16 Are reorganizations likely to affect how budgets should be prepared
2.4.17 and/or
Do you reported?
only budget in dollars, or are statistics budgeted also (for
2.4.18 example,
Do headcount)?
you require consolidated budgets (budgeting across sets of books)?
2.4.19 Are all budgets prepared in the same currency?
2.4.20 Do you use Excel, or another spreadsheet program to prepare budgets?
2.4.21 Which spreadsheet products and which version do/will you use?
2.4.22 How do you close or "freeze" a budget once it is approved?

2.5 Forecasting
2.5.1 Do you derive any type of forecast from budgets?
2.5.2 Does Your Company prepare financial forecasts? What types of financial
forecasts does Your Company prepare?
2.5.3 Is the financial forecasting process documented?

2.6 Maintenance
2.6.1 How do you maintain your General Ledger data?
2.6.2 How do you audit your General Ledger data?

2.7 Performance Monitoring

2.7.1 How do you monitor profitability?
2.7.2 Do you monitor profitability/analysis by Organization (cost center,
division, region)?
2.7.3 Do you monitor profitability/analysis by Business Line or Function
2.7.4 Do you monitor profitability/analysis by Skill/Job?
2.7.5 Do you monitor profitability/analysis by Revenue Category?
2.7.6 Do you monitor profitability/analysis by Activity?
2.7.7 Do you monitor profitability/analysis by Employee?
2.7.9 Do you use projects to track Overhead activities and/or Product
Development efforts?
2.7.10 Is “activity-based costing” an issue that is important to Your Company?
2.7.11 Do you monitor profitability/analysis by Industry/Market Sector?
2.7.12 Do you monitor profitability/analysis by Customer/Customer Type?
2.7.13 How do you determine whether indirect labor costs, such as overhead,
are actually recovered through your billing practice?

3 Transaction Processing
 3.1 General Ledger Transactions
3.1.1 Do you track journal sources? What types?
3.1.2 Do you track journal categories? What ones?
3.1.3 Do you enter statistical accounts regularly? How often?
3.1.4 Do you use batches to enter journals?
3.1.5 Do you reverse journals on a regular basis? Explain.
3.1.6 Do you have standard journals that recur with the same accounting
3.1.7 information (but changing
Do you use control amounts)?
totals when Provide
entering examples.
journals?
3.1.8 How often do you post journals to your General Ledger balances?
3.1.9 What are the procedures you use to post these journals?
3.1.10 Who posts the journal batches? Who approves the posting?
3.1.11 Do you allow for posting out of balance journals into a suspense
3.1.12 account?
Do you import journals from spreadsheets
3.1.13 Do you have any input documents that you currently use?
3.1.14 Do you have any audit requirements that might be unique?

4 Period Processing 
4.1 Periods
4.1.1 When is the beginning of your year?
4.1.2 What is the period type? How many periods in your year?
4.1.3 Do all the companies have the same calendar? Explain.
4.1.4 Do you have a naming convention for the periods?
4.1.5 What accounting periods are in your quarters?

4.2 Period Close

4.2.1 What is your period-end reconciliation process?
4.2.2 When closing at year end do you use a 13th period?
4.2.3 How do you close an accounting period?
4.2.4 Is the schedule to close an accounting period documented?
4.2.5 How long does it take to close an accounting period?
4.2.6 How are adjustments to closed periods handled?
4.2.7 Who performs the tasks associated with closing an accounting period?
4.2.8 Where in your accounting cycle do you run standard reports and
4.2.9 statements?
Do sub-ledgers have their own calendar?

4.3 Period Open

4.3.1 How do you open an accounting period?
4.3.2 Is the schedule to open an accounting period documented?
4.3.3 How long does it take to open an accounting period ?
4.3.4 Who performs the tasks associated with opening an accounting period?

5 Reporting
5.1 Financial Reporting
5.1.1 Describe your Financial Reporting.
5.1.2 Provide samples of your standard financial reports - Balance Sheet,
5.1.3 Cash Floware
How long Statement, Income/Operating
reports kept Statement,
on-line or are they re-run ifTrial Balance,
needed etc
again?
5.1.4 Do you have online account balance lookup? If needed, which accounts
5.1.5 and how
Please often?a list of all reports used in the General Ledger area.
enclose
Please annotate the report list with each report's name/number,
description, the type of users, frequency on which these reports are
generated.
 6 Miscellaneous
6.1 What else needs to be discussed?
6.1.1 How do you handle taxes?

Issues and Action Items

 lysis Questionnaire
Ledger

Change Reference

Answer Revisit