The document defines internal control as a process overseen by a company's board of directors and senior management to reasonably ensure: effective and efficient operations, reliable financial reporting, and compliance with laws and regulations. It then provides 35 questions regarding internal controls for a manufacturing company, including questions about the effectiveness of the system, its ability to prevent fraud, optimization of resource use, accounting procedures, and controls over expenditures, payroll, investments and more. The source is listed as both internet resources and self-composed material.

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. 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. 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. 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. 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?
SOURCE: 1. FROM INTERNET.
2. SELF COMPOSED WITH RESOURCES.