ACCOUNTING INFORMATION SYSTEM

QUESTIONS

A. SALES ORDER and FINANCIAL REPORTING

1. Who initiates in getting sales?
2. Can you discuss your sales order processing, from the moment the customer inquiries until the property is
sold.
3. What are the monitoring methods for Sales order processing activities?
4. Who can access your sales order documents? Is there a specific person who can monitor those
documents?
5. Who records your sale? Do you have separate personnel who is responsible to record your sale in the
company book?
6. What are your sales order processing tracking, reconciliation and reporting.
7. Do you create a duplicate copy or soft copy of the sales order form from your customers?
8. How do you make sure that employee records accurately and on time?
9. Do you reconcile your records with your documents? If yes, how often and when?
10. How do you record your sales? Is there a separate book for your sales and your expenditures?
11. Are the accounting principles adopted specific to the circumstances of your company?
12. Is there unnecessary duplication of information within the annual report?
13. Do you prepare the basic reports like the balance sheet and the profit/loss statement.
14. What is the flow of making your financial report?
15. When do you usually update your inventory records? example like after sales, after billing the customer or
after assuring sale?

B. CASH DISBURSEMENT

1. Are all disbursements, except those from petty cash, made by pre-numbered checks?
2. Are voided checks preserved and filed after appropriate mutilation?
3. Is there a written prohibition against drawing checks payable to cash?
4. Is there a written prohibition against signing checks in advance?
5. Is a cash disbursement voucher prepared for each invoice or request for reimbursement that details the
date of check, check number, payee, amount of check, description of expense account (and restricted
fund) to be charged, authorization signature, and accompanying receipts?
6. Are all expenditures approved in advance by authorized persons?
7. Are signed checks mailed promptly?
8. Does the check signer review the cash disbursement voucher for the proper approved authorization and
supporting documentation of expenses?
9. Are invoices marked paid with the date and amount of the check?
10. Are requests for reimbursement and other invoices checked for mathematical accuracy and
reasonableness before approval?
11. Is a cash disbursement journal prepared monthly that details the date of check, check number, payee,
amount of check, and columnar description of expense account (and restricted fund) to be charged?
12. Is check-signing authority vested in persons at appropriately high levels in the organization?
13. Are the numbers of authorized signatures limited to the minimum practical number?
14. Do larger checks require two signatures?
15. Are bank statements and canceled checks received and reconciled by a person independent of the
authorization and check signing function?
16. Are unpaid invoices maintained in an unpaid invoice file?
17. Is a list of unpaid invoices regularly prepared and periodically reviewed?
18. Are invoices from unfamiliar or unusual vendors reviewed and approved for payment by authorized
personnel who are independent of the invoice processing function?
19. If the organization keeps an accounts payable register, are payments promptly recorded in the register to
avoid double payment?
20. If purchase orders are used, are all purchase transactions used with pre-numbered purchase orders?
21. Are advance payments to vendors and/or employees recorded as receivables and controlled in a manner
which assures that they will be offset against invoices or expense vouchers?
22. Are employees required to submit expense reports for all travel related expenses on a timely basis?

C. INTERNAL CONTROL
1. Are there certain documents that are being limited as to its access? What are some of these
documents?
2. Are there separate assigned personnel in-charge for the custody and recording of the cash receipts in
the accounting records?
3. When are transaction authorizations necessary in terms of cash receipts and in revenue processing?
Does it include authorizations for credit sales, refunds and cash pre-lists?
4. What are the common accounting documents and records used in processing revenue and cash
receipts?
5. What are current problems that are being experienced in the processing of cash receipts and
revenue?
6. Are your IT systems regularly updated and checked for updated regulations and procedures?
7. What are the different departments that handle the cash receipts and revenue process?
Narrative
1. As a real estate company, when will you recognize a sales order? Is it when a customer verbally places
an order or after such customer secures the order with a down payment or other agreed fees?
2. What can you say about the efficiency of the processing of cash receipts and revenue in the company?
Is it effective? If not, what can you recommend?
What process and supporting documents mark the end of the cash receipts and revenue process?

D. PAYROLL SYSTEM

1. Discuss to us your payroll system

2. What problems have you faced in the distribution of payroll
3. What is the internal control weakness of the payroll system?
4. What are the common accounting documents and records used in processing payroll?
5. Who is incharge to operate the system and perform various functions
6. What are the manual or automated procedures involved in collecting, processing and storing data?
7. What is the software used to process organizational data?