Question: Discuss the purpose of the following questions that appear on

Discuss the purpose of the following questions that appear on an internal control questionnaire.
a. Does the company have an organization chart?
b. Are the duties of the principal accounting officer segregated from those of the treasurer?
c. Are employees in positions of trust bonded?
d. Are bank accounts reconciled regularly by the company?
e. Does the company maintain a ledger of its fixed assets?
f. Are journal entries approved by a responsible official?
g. Are aging schedules of accounts receivable prepared periodically and reviewed by a responsible person?
h. Does the company compare budgeted amounts with actual expenditures?
i. Are trial balances of the accounts receivable ledgers pre-pared and reconciled regularly?
j. Do the employees who maintain inventory records have physical access to the inventory?
k. Are the inventory records adjusted to physical counts at least once a year?
l. Are remittance advices that accompany receipts separated and given to the accounting department?
m. Are costs and expenses under budgetary control?
n. Is a postage meter used?
o. Are monthly statements of account mailed to all customers?
p. In reconciling bank accounts, do employees examine endorsements?
q. Has the bank (or banks) been instructed not to cash checks payable to the company?

  • CreatedFebruary 26, 2015
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