The following questions appear in Figures 9-4 and 9-5:

1. Are imprinted and prenumbered checks used?

2. Is each check supported by an approved voucher?

3. Is supporting documentation mutilated after payment?

4. Are two signatures required on each check?

5. Does last check signer mail the check and remittance advice?

6. Are there prohibitions against issuing checks to cash or bearer?
7. Is numerical sequence of checks followed in journalizing?
8. Are bank accounts independently reconciled?
9. Is a signed purchase order required for each purchase?
10. Are goods counted, inspected, and compared with purchase orders upon receipt?
11. Is a signed receipt obtained from storeroom or other recipient upon receipt of goods from receiving?
12. Are purchase orders, receiving reports, and vendors' invoices matched in preparing vouchers?
13. Is access to storeroom limited to authorized personnel?
Required:

a. Identify the internal accounting control objective to which each question relates (i.e., executing, recording, or custody).

b. Identity the function and specific internal control objective to which the question pertains.

c. Indicate the internal accounting control principle that is involved.

d. Identify an error or irregularity that may result from a "No" answer to each question.

Transcribed Image Text:

INTERNAL CONTROL QUESTIONNAIRE Cycle: Expenditure Class of transactions: Cash disbursements Executing Transactions Are all disbursements (except for petty cash) made by check? Are imprinted and prenumbered checks used? Is a check-protection device used in printing the check amount? Is each check supported by an approved voucher? Is supporting documentation mutilated after payment? Are two signatures required on each check? Does last check signer mail the check and remittance advice? Are there prohibitions against issuing checks to cash or bearer? Is the signing of blank checks prohibited? Is the supply of unused checks controlled? Are voided checks retained and accounted for? Recording Transactions Are accounting personnel prohibited from signing checks? Is numerical sequence of checks followed in journalizing? Are all issued checks accounted for in journalizing? Maintaining Custody of Assets Are bank accounts independently reconciled? Figure 9-5. INTERNAL CONTROL QUESTIONNAIRE: CASH DISBURSEMENTS TRANSACTIONS