OVERALL INTERNAL CHECKLIST B.

CASH FUNDS

A. GENERAL 1.) _____________ system

1.) ________ of accounts 2.) _____________ amount

2.) Accounting ________ 3.) Completeness of _____________

3.) ___________ to define responsibilities 4.) _____________responsible for fund

4.) ____________ direct to ledgers 5.) _____________to order of custodian

5.) __________ in ledgers 6.) _____________audits

6.) Review of _____________ 7.) No employee check _____________

7.) _____________ journal entries 8.) _____________secure

8.) Use of _____________ 9.) Custodian has no access to _____________

9_____________for all journal entries 10.) Custodian has no access to_____________

10.) Access to records limited to _____________ C. CASH RECEIPTS

11.) Rotation of _____________ 1.) Detail listing of _____________

12.) _____________ vacations 2.) _____________of checks

13.) Review of system_____________ 3.) Special handling of_____________

14.) Appropriate revision of _____________ 4.) Daily_____________

15.) Appropriate revision of _____________ 5.) Cash custodians_____________

16.) Separation of _____________from operations 6.) Cash custodian _____________

17.) Separation of record keeping from _____________ 7.) Bank accounts_____________

18.) Record _____________ 8.) Handling of _____________

19.) _____________ of employees 9.) Comparison of duplicate deposit slips with _____________

20.) A _____________policy 10.) Comparison of duplicate deposit slips with _____________

11.) Bank instructed not to _____________to company 13.) _____________for interbank transfers

12.) Control over cash from_____________ 14.) Checks _____________payable to cash

13.) Separation of cashier personnel from _____________ 15.) _____________of unused checks

14.) Separation of cashier personnel from _____________ 16.) Cancellation of_____________ documents

15.) Use of _____________ 17.) Control over _____________

16.) Cash register _____________ 18.) _____________of bank accounts

17.) _____________ cash receipts tickets 19.) _____________reconciling bank statement

18.) Outside salesmen _____________ 20.) _____________direct to person reconciling

19.) Daily reconciliation of _____________ 21.) No access to cash records or receipts by_____________

D. CASH DISBURSEMENTS E. INVESTMENTS

1.) Numbered _____________ 1.) Proper authorization of _____________

2.) _____________ support for check 2.) Under control of _____________

3.) _____________to sign checks 3.) Custodian _____________

4.) No signing of _____________ 4.) Custodian separate from ____________

5.) All checks _____________ for 5.) Custodian separate from _____________

6.) _____________listing of checks 6.) _____________ box

7.) _____________of voided checks 7.) Record of all safety_____________

8.) _____________approval for _____________ large checks 8.) Access _____________

9.) Proper authorization of persons _____________ 9.) Presence of _____________ required for access

10.) Control over _____________ 10.) Periodic reconciliation of _____________ with control

11.) Check listing compared with _____________ 11.) Record of all aspects of _____________

12.) Control over _____________ 12.) Availability of _____________ advices etc.

13.) Periodic _____________ audit 14.) Control over_____________

14.) _____________ in name of company 15.) Control over _____________

15.) _____________of collateral 16.) Sales reconciled with _____________and _____________

16.) _____________of collateral 17.) Sales reconciled with_____________

17.) _____________of collateral 18.) _____________statement to all customers

18.) Periodic appraisal of _____________ 19.) Periodic preparation of_____________

19.) Adequate records of investments for application of 20.) Control over collections of _____________

_____________ 21.) Control over accounts receivable write-offs

F. ACCOUNTS RECEIVABLE AND SALES (e.g _____________)

1.) Sales order _____________ 22.) Control over accounts receivable written off

2.) Credit _____________ ( e.g _____________)

3.) _____________and sales departments independent 23.) Independence of sales, _____________

4.) Control of _____________ , receipts, billing and _____________

5.) Sales _____________and sales invoice comparison G. NOTES RECEIVABLE

6.) _____________invoices prenumbered 1.) _____________ authorization of notes

7.) Names and addresses on_____________ 2.) _____________records of notes

8.) Review of sales_____________ 3.) Periodic detail to control _____________

9.) Control over _____________ 4.) Control over _____________

10.) _____________prenumbered 5.) Control over_____________

11.) _____________ of credit memoranda and receiving reports 6.) _____________ of notes

12.) _____________over credit memoranda 7.) Periodic count of _____________

13.) Control over _____________ 8.) Control over_____________

9.) Control over revenue from _____________ 20.) Cost system_____________ into general ledger

10.) _____________independent from cash and record keeping 21.) Periodic review of _____________ rates

H. INVENTORY COST OF SALES 22.) Use of _____________

1.) Periodic _____________ 23.) Use of _____________

2.) _____________inventory instructions 24.) Periodic _____________of inventory usage

3.) _____________by noncustodians 25.) Control over _____________ inventory transfers

4.) Control over _____________ 26.) _____________ prenumbered

5.) Control over _____________ 27.) Proper authorization for _____________

6.) Use of _____________records 28.) Review of _____________purchase orders

7.) Periodic comparison of_____________ and perpetual I. PREPAID EXPENSES AND DEFFERED CHARGES
records
1.) Proper authorization to _____________
8.) Investigation of _____________
2.) Authorization and support of _____________
9.) Control over_____________ inventory
3.) _____________ records
10.) Control over inventory stored at _____________
4.) Periodic review of amortization_____________
11.) Control over _____________left with customers
5.) Control over_____________
12.) Preparation of_____________ reports
6.) Periodic review of insurance_____________
13) _____________receiving reports
7.) Control over _____________
14.) Receiving reports in_____________ order
8.) _____________of company policies
15.) Independence of custodian from _____________ keeping
9.) Physical control of ____________
16.) Adequacy of _____________
J. INTANGIBLES
17.) Physical safeguards against _____________
1.) Authorization to_____________
18.) Physical safeguards against _____________
2.) Detailed _____________
19.) Adequacy of _____________
3.) Authorization to _____________ L. ACCOUNTS PAYABLE

4.) Periodic review of _____________ 1.) Designation of _____________

K.FIXED ASSETS 2.) Independence of accounts payable personnel from

1.) Detailed _____________records _____________, _____________, _____________functions

2.) Periodic comparison with_____________ 3.) Periodic comparison of detail and _____________

3.) Proper authorization for _____________ 4.) Control over _____________

4.) _____________ policies for acquisition 5.) _____________of vendors’ invoices

5.) Control over expenditures for_____________ 6.)Matching of _____________,_____________

6.) Use of_____________ orders , and _____________

7.) Individual asset _____________ 7.) Reconciliation of vendor statements with _____________

8.) Written authorization for_____________ 8.) Control over _____________memos

9.) Written authorization for_____________ 9.) Control over _____________

10.) Physical safeguard from _____________ 10.) Review of _____________receiving reports

11.) Control over _____________assets 11.) _____________of supporting documents at payment

12.) Written _____________expense policies 12.) _____________of debit balances

13.) _____________charged for asset and depreciation records 13.) Investigation of discounts _____________

14.) Written, detailed _____________records M. ACCRUED LIABILITIES AND OTHER EXPENSES

15.) Depreciation _____________for sales and retirements 1.) Proper authorization for _____________and
_____________
16.) Control over _____________
2.) Control over _____________
17.) _____________of insurance
3.) _____________meter
18.) Control over _____________containers
4.) _____________department

5.) Bids from _____________

6.) Verification of _____________ O. LONG-TERM LIABILITIES

7.) _____________cash system 1.) Authorization to _____________

8.) Detailed_____________ 2.) _____________in company name

9.) _____________charged 3.) Detailed records of _____________debt

10.) Independence from _____________and _____________ 4.) Reports of independent _____________

functions
5.) Reports of independent _____________
11.) Periodic comparison with _____________
6.) Otherwise adequate records of _____________
N.PAYROLL
7.) Control over _____________
1.) Authorization to_____________
8.) _____________independent of each other
2.) _____________data records
9.) Adequacy of records of --------------
3.) _____________records
10.) Periodic review of _____________compliance
4.) Time _____________
11.) Record keeping of _____________
5.) Supervisor review of _____________
12.) Record keeping of _____________
6.) Review of payroll _____________
P. STOCKHOLDERS’ EQUITY
7.) Comparison of time cards to _____________
1.) Use of _____________
8.) Imprest _____________account
2.) Use of _____________
9.) _____________for payroll records
3.) _____________ of detailed records
10.) Compliance with _____________
4.) Comparison of _____________report with records
11.) Distribution of payroll _____________
5.) Physical control over _____________certificates
12.) Control over _____________wages
6.) Physical control over _____________certificates
13.) _____________authorization
7.) Authorization for _____________
14.) Responsibility for profit sharing _____________
8.) _____________compliance for canceled certificates
9.) Independent dividend _____________

10.) Imprest dividend _____________

11.) Periodic reconciliation of _____________

12.) Adequacy of _____________

13.) Review of stock _____________and _____________

14.) Valuation provision for _____________

15.) Other _____________entries

16.) Other _____________entries