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APPENDIX A
INTERNAL CONTROL QUESTIONNAIRE

No Ye N
Question
. s o
  CONTROL ENVIRONMENT    

1 Does the organization have a statement of mission and objectives?    

Does your organization have an organizational chart that clearly

2    
defines lines of authority and responsibility?
3 Are there written job descriptions for each employee?    
  ACCOUNTING SYSTEM    
Does your organization have an up-to-date accounting policies and
1    
procedures manual?
Is there a budgetary control system?    
2
a.       Is it being used properly?    
Do reports:    

a.       Adequately focus on management information requirements?    

3
b.      Provide timely and complete information needed both
   
internally and externally?
4 Does a functional records management program exist?    
Are all cash receipts are recorded through the use of pre-numbered
5 receipts (or cash registers) by an individual designated to receive    
cash?
6 Are cash receipt procedures in writing?    
Are cashiers’ daily cash reports subjected to supervisory review and
7    
approval?
Is there daily posting of cash receipts to subsidiary accounts
8    
receivable records?
9 Are all persons who handle cash adequately bonded?    
Are cash receipts recorded and reconciled to the general ledger
10    
monthly?
Are all cash disbursements, except those from petty cash, made by
11    
printed pre-numbered checks?
Has the organization’s disbursement approval policy been
12    
communicated to all appropriate staff?
13 Is there a written prohibition against checks payable to cash?    
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Are all invoices or requests for disbursements supported by

14 appropriate receipts or documentation that indicates receipt of the    
goods and services?
15 Are purchases made by requisition/purchase order only?    
Are pre-numbered receiving reports used and copies thereof
16    
forwarded to the accounting department?
  CONTROL PROCEDURES    

1 Are credit and collection policies in writing and properly approved?    

Do adequate procedures exist for follow-up and collection of

2    
delinquent accounts?
Are there controls to ensure that individuals with delinquent
3    
accounts are precluded from receiving additional credit?
Is there adequate segregation of duties between the approval and
   
payment functions as to:
a.       Approval of documents for payment?    
4 b.      Check preparation?    
c.       Check signing?    
d.      Access to cash?    
e.       Access to accounting records?    
Do written policies exist to enforce restrictions placed on property in
5 the custody or under the control of, but now owned by the    
institution?
Is there separation of duties between persons who handle the
   
inventories and those handling:
6 a.       Inventory records?    
b.      Sales billing?    
c.       Recording of purchases?    
7 Are purchasing policies defined by written procedures?    
Do policies provide for the assignment of responsibility for final
8    
purchasing decisions at the appropriate level?

Are the storerooms or storage areas properly safeguarded or

9    
controlled to prevent access to materials by unauthorized persons?

10 Are goods consigned in and out accounted for properly?    

11 Are stock records updated daily?    

Adapted from the Standardized Internal Control Questionnaire