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DEFINITION OF INTERNAL CONTROL: INTERNAL CONTROL IS
DEFINED AS A PROCESS EFFECTED BY BOARD OF DIRECTORS,
SENIOR MANAGEMENT...
6. ARE THE EMPLOYEES AND OTHER STAFF HAPPY
   WITH THE INTERNAL CONTROL SYSTEM IN PLACE
   FOR THE COMPANY?


7. DO YOU TH...
13. ARE PERSONNEL POLICIES MAINTAINED AND
   DISTRIBUTED TO ALL PERSONNELS?


14. DOES YOUR ORGANISATION HAVE AN
  ORGANIS...
22. ARE PETTY CASH FUNDS MAINTAINED ON AN
   IMPREST BASIS?


23. IS RESPONSIBILITY FOR EACH PETTY CASH FUND
  ASSIGNED TO...
32. ARE ALL STAFF TIME RECORDS REVIEWED AND
      AUTHORISED BY AN APPROPRIATE SENIOR
      OFFICIAL?


   33.ARE COPIES O...
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INTERNAL CONTROL SYSTEM -QUESTIONNAIRE

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IT IS A QUESTIONNAIRE OF INTERNAL CONTROL SYSTEM

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Transcript of "INTERNAL CONTROL SYSTEM -QUESTIONNAIRE"

  1. 1. DEFINITION OF INTERNAL CONTROL: INTERNAL CONTROL IS DEFINED AS A PROCESS EFFECTED BY BOARD OF DIRECTORS, SENIOR MANAGEMENT AND OTHER MANAGERS WHICH IS DESIGNED TO PROVIDE REASONABLE ASSURANCE REGARDING THE ACHIEVEMENT OF FOLLOWING OBJECTIVES: • EFFECTIVENESS AND EFFICIENCY OF OPERATIONS. • RELIABILITY ON FINANCIAL REPORTING. • COMPLIANCE WITH LAWS AND REGULATIONS. QUESTIONNAIRE FOR INTERNAL CONTROL OF THE MANUFACTURING COMPANY 1. DO YOU THINK THIS MANUFACTURING COMPANY HAS GOOD INTERNAL CONTROL SYSTEM WHICH IS UPDATED WITH NEW TECHNOLOGIES? 2. ARE YOU SATISFIED WITH THE INTERNAL CONTROL SYSTEM OF THIS COMPANY? 3. HOW EFFECTIVE IS THE INTERNAL CONTROL SYSTEM OF THIS COMPANY? DO YOU FIND IT TO BE BENEFICIAL FOR THE COMPANY? 4. ARE THERE ANY CHANGES WHICH HAVE OCCURRED IN THE WORKING OF THE COMPANY SINCE THE INTERNAL CONTROL SYSTEM CAME INTO PLACE? 5. HAS THE INTERNAL CONTROL SYSTEM PROVED TO BE COST EFFECTIVE FOR THE COMPANY?
  2. 2. 6. ARE THE EMPLOYEES AND OTHER STAFF HAPPY WITH THE INTERNAL CONTROL SYSTEM IN PLACE FOR THE COMPANY? 7. DO YOU THINK THE INTERNAL CONTROL SYSTEM OF THE COMPANY IS FOOLPROOF ENOUGH THAT NO FRAUDS CAN BE COMMITTED? 8. WITH THE INTERNAL CONTROL SYSTEM IN PLACE, ARE THE RESOURCES OF THE COMPANY BEING USED TO THE OPTIMUM LEVEL SO THAT THERE IS MINIMUM WASTAGE OF RESOURCES? 9. IS THERE ANY SPECIFIC DEPARTMENT IN THIS COMPANY WHICH IS WORKING ON FURTHER IMPROVEMENT OF THE INTERNAL CONTROL SYSTEM? 10. DO YOU SEE INCREASE IN CO-ORDINATION BETWEEN ALL THE LEVELS OF MANAGEMENT PRESENT IN THE COMPANY BECAUSE OF THE INTERNAL CONTROL SYSTEM? 11. HAS THE ACCOUNTING PROCEDURE OF THE COMPANY BEING REVAMPED TO ACCOMMODATE THE CHANGES IN THE WORKING PATTERN OF THE COMPANY? 12. DOES YOUR ORGANISATION HAVE AN UP- TO -DATE ACCOUNTING POLICIES AND PROCEDURES MANUAL?
  3. 3. 13. ARE PERSONNEL POLICIES MAINTAINED AND DISTRIBUTED TO ALL PERSONNELS? 14. DOES YOUR ORGANISATION HAVE AN ORGANISATIONAL CHART THAT CLEARLY DEFINES LINES OF AUTHORITY AND RESPONSIBILITY? 15. ARE CURRENT JOB DESCRIPTIONS ON FILE FOR EACH EMPLOYEE IN THE ORGANISATION? 16. ARE DAILY RETURNS AND REPORTS RECEIVED FROM BRANCHES/FACTORIES FOR COLLECTIONS, SALES AND DESPATCHES, PRODUCTION AND RECEIPT OF GOODS? 17. IS AN INTERNAL AUDIT MANUAL IN USE? 18. IS THERE RECONCILIATION OF PROOFS OF COLLECTION WITH AMOUNTS BANKED? 19. IS PURCHASING CENTRALISED IN THE PURCHASE DEPARTMENT? 20. ARE PURCHASES MADE ONLY FROM APPROVED SUPPLIERS? 21. ARE PETTY CASH FUNDS KEPT IN SECURE STORAGE?
  4. 4. 22. ARE PETTY CASH FUNDS MAINTAINED ON AN IMPREST BASIS? 23. IS RESPONSIBILITY FOR EACH PETTY CASH FUND ASSIGNED TO A SPECIFIC RESPONSIBLE INDIVIDUAL? 24. IS THERE A PROHIBITION AGAINST PETTY CASH DISBURSEMENTS OVER A SPECIFIED AMOUNT? 25. IS A VOUCHER USED FOR ALL PETTY CASH DISBURSEMENTS? 26. IS THE VOCHER PRENUMBERED? 27. DO ALL PETTY CASH DISBURSEMENTS REQUIRE ORIGINAL RECEIPTS FOR REIMBURSEMENT? 28. IS THE CASHING OF EMPLOYEE PAYCHEQUES OUT OF THE PETTY CASH FUND PROHIBITED? 29. ARE PERSONS AUTHORISED TO APPROVE EXPENDITURES CLEARLY IDENTIFIED? 30. HAS THE ORGANIZATION’S DISBURSEMENT APPROVAL POLICY BEEN COMMUNICATED TO ALL APPROPRIATE STAFF? 31. ARE ALL EXPENDITURES APPROVED IN ADVANCE BY AN APPROPRIATELY AUTHORISED PERSON?
  5. 5. 32. ARE ALL STAFF TIME RECORDS REVIEWED AND AUTHORISED BY AN APPROPRIATE SENIOR OFFICIAL? 33.ARE COPIES OF TIMEKEEPING RECORDS RETAINED ON FILE? 34.ARE REPORTED OVERTIME HOURS VERIFIED FOR REASONABLENESS AND PROPER PRE-APPROVAL? 35.ARE ALL INVESTMENT TRANSACTIONS REVIEWED AND APPROVED BY THE GOVERNING BOARD OR AN AUTHORISED BOARD COMMITTEE? BY SREENIVAS S. IYER

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