For each Yes/No question listed on the questionnaire, write a brief explanation (in the spaces provided below the problem) of why a No answer represents a control weakness. Question Yes No

5. Is a perpetual inventory maintained?

6. Are competitive bids used when ordering expensive items?

7. Are budgets set for service expenses and are variances investigated?

8. Are receiving dock employees trained to accept deliveries only when an approved purchase order exists?

9. Are invoices only approved for payment when accompanied by both purchase order and receiving report?

10. Is the bank account regularly reconciled by someone not involved in issuing checks?