Internal Control Questionnaire Problem 1

Requirement:

Give an assessment of internal control based on the above questionnaire. Use low, moderate, high or "set internal control risk at the maximum."

Your assessment should be a short (one paragraph). Giving justification for your answer.

please see the attachment

INTERNAL CONTROL QUESTIONAIRES Cash Handling Questionnaire Question Yes No N/A or Un Tests Cash and Check Receipt Handling (answered by the controller) 1. For payments received by mail, is a mail log maintained by hand in ink to prevent alteration that lists the date of receipt, amount of check, etc.? X 2. Is the mail log prepared by someone independent of the cash receipts process? X 3. Are checks stamped with a restrictive endorsement immediately upon receipt? X 4. Is cash counted and verified when cashiers receive checks from the mailroom? X 5. Is cash, at all times, in the possession and control of only one person? X X 6. Is a receipt given for all transactions that are conducted in person? Question 92 Yes 7. Are duplicate copies of receipts retained? X 8. Are relevant documents issued in sequence? X 9. Are voided pre-numbered documents kept and accounted for? X No N/A or Unk Tests Question Yes No N/A Or Unk Tests Cash and Check Deposits X Weakness safeguard 4. Do you use a either a locking bank bag or a sealing plastic tamper proof bag for deposit? X Weakness safeguard 5. Do two people accompany the departmental deposit from the office to the nearest depository? X Weakness safeguard 1. Are receipts recorded promptly and deposited within 24 hours if greater than $500, or at least once weekly if less? 2. Are all funds received deposited with no funds being held back for change, petty cash, etc.? 3. Are deposit slips prepared in at least duplicate form? X X Company and Departmental Policies and Procedures X 1. Do you perform background checks and fingerprinting on all new employees who handle cash? 2. Do all personnel who handle cash have access to, and knowledge of, the applicable company policies? X 3. Are departmental policies and procedures current and in writing regarding how the department is to comply with Company requirements regarding the receipt, recording, safeguarding, deposit, and reconciliation of receipts? (Receipts include cash, checks, and credit card transactions.) X Management Oversight and Reconciliation Question 92 Yes No N/A or Unk Tests X 1. Are all resulting discrepancies investigated and resolved? 2. Does someone independent of the cash receipts process reconcile payment receipts to deposit slips on a daily basis? 3. Is the payment receipt to deposit reconciliation regularly reviewed by management? X 4. Does someone independent of the cash receipts process reconcile payment receipts to receipt records? X X X 5. Does someone independent of the cash receipt process reconcile receipts records (receipts, mail log, cash register) to the deposit slip? X 6. Is the receipt record to deposit slip reconciliation regularly reviewed by management? 7. Are visible indicators of management reviews (such as initials and dates) evident on reconciliations and other reports? X Question Yes No N/A or Unk Tests Safeguarding of Assets X 1. Are adequate physical facilities such as a safe or locking drawer provided for safeguarding cash? 2. Is cash always safeguarded when unattended? X 3. Are receipt books safeguarded when unattended? X 4. Are safe combinations and keys to lockboxes restricted to a minimum number of employees? X Internal Control Questionnaire Problem 1 Requirement: Give an assessment of internal control based on the above questionnaire. Use low, moderate, high or \"set internal control risk at the maximum.\" 92 Your assessment should be a short (one paragraph). Giving justification for your answer. 92