JII Internal Audit

Audit Program--Check Disbursements

October 2002

A Scan all check lists since inception of policy. Decide if:

1 checks issued are in sequence (no missing checks)
2 items are signed off by the correct individuals
3 batch listings and check registers are filed appropriately

B Pick a few check runs since the inception of the policy. Test the following:
1 Were expenses authorized by the correct individual
2 Was there an independent review of authorizations
3 Do the check numbers on the control check list agree to the check register
4 Does the check register agree to the file check copies and voucher packages
5 Do the invoices appear to have been recalculated/checked for accuracy
6 Do the invoice numbers on the batch control list agree to the vendor invoices
7 Were any invoices paid that were not originals
8 Inquire as to how the vendors received payment. In any case were checks NOT MAILED?
9 Is it possible to void a signed check and replace it with a check made out to a different vendor?
10 Did invoice numbers on batch control lists match original invoice numbers EXACTLY?
11 Search for evidence that a master vendor listing was reviewed

C Observe a check run in real time. Decide the following

1 Did it appear that the employee authorizing the expenses actually reviewed the expenses before signing off?
2 Is the check stock actually held, locked, by the office manager?
3 Is it the office manager that decides how many checks the clerk needs and marks down the sequence?
4 Does the person signing the checks compare the invoices to the batch list that was initially approved by another finance personnel?
5 Inquire of the payables clerks what the check signing authority levels are and where are they documented?

D Review the petty cash controls

1 Interview the person in charge of reconciling petty cash. Decide if it's actually happening on a monthly basis.
2 Spot check the cash drawer, count it, and tie the amount to the balance on hand.

E Review Wire Controls

1 Review the confirmations and reviews for all wires since E&Y's report
2 Verify that each wire is confirmed on a timely basis

F Review access to ACCPAC

1 Interview System Administrator
2 Understand the security module
3 Review each user's level of access for appropriateness
4 Verify that the controls in the security module actually work