Is the Payroll properly classified for well defined (a) departments and (b) cost centres? Plagiarism Prevention 5. Are the receipts with respect to: (a) Cash at the counter, (b) Cheques accompanied by remittance advices, (c) Cash against money orders, and (d) Postal orders etc. 21. Pages in this booklet that have been incorporated elsewhere since December 2007 are watermarked and point to the relevant booklets of the Comptroller's Handbook. Or, just immediately before deliveries received? Cash receiving and cash accounting are separated. Adequate management review and analysis of relevant data such as inventory turnover, shrinkage, markdown, and sales trends. Search | AICPA 10. During the planning phase of an assurance audit, IACS may use an Internal Control Questionnaire (ICQ) to help evaluate internal controls in specific areas. What information is included? If you have any questions related to the items covered in the self-assessment, please contact Seth Kornetsky, Executive Director of Audit & Management Advisory Services at extension 7-2068 or via email at seth.kornetsky@tufts.edu. Are credit card numbers ever included in emails or attachments to emails? It helps auditors understand whether the systems at place work as intended. 11. Audit Process. Once auditors complete the questionnaire, they typically ask management to review and validate the responses. Does the Unit ever compare what they do have with what they should have? For example, a question might ask: Is a physical inventory count conducted annually? Theft and unauthorized use of stolen credit card numbers. Is there an adequate audit trail and reconciliation procedure for timely detection of shortages? if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[580,400],'accountinghub_online_com-medrectangle-4','ezslot_5',153,'0','0'])};__ez_fad_position('div-gpt-ad-accountinghub_online_com-medrectangle-4-0');Internal control evaluation questionnaires allow auditors to evaluate the effectiveness of a companys internal controls. Mission Statement The Risk Unit is responsible for evaluating loss exposures, assessing liability, handling claims, promoting internal controls and developing effective safety and health programs. The purpose of the internal control questionnaire is to help the audit team assess your company's internal control system. Leasing Vs Financing Whats the Difference? PDF An Audit of Internal Control Over Financial Reporting That Is - AICPA (b) Are adequate controls exercised for recording, etc.? Explicit written approval from the Information Security Officer is required to collect and/or store paper records containing payment card data. Adequate physical security over cash (during both storage and transfer). Does the Unit have procedures which accurately record revenue from all sources: cash, check, credit card charge, internal charge, etc.? AASHTO Internal Control Questionnaire for Consulting Engineers Internal Control Questionnaire for Consulting Engineers Version: 2016( 01- ) AASHTO Uniform Auditing & Accounting Guide (2015 Edition) - APPENDIX B Page B-2. 23. This booklet applies to the OCC's supervision of national banks. This booklet is a compilation of internal control questionnaires and verification procedures from various booklets of the Comptroller's Handbook. ICEQs does not detect whether a company has the necessary internal controls necessary. Based on this conclusion, auditors can make a decision whether the companys internal controls are effective or deficient. Are the adjustments in Asset Records made with proper authority? Gartner is a registered trademark of Gartner, Inc. and its affiliates. Does the company maintain a list of Title for all landed properties and buildings? DOC University of California | Office of The President Is the system compatible? 22. The tool covers control questions in areas of interest to audit leaders such as revenue, expenditure and general IT controls. Are surplus checks exercised by a senior level official (independent of cash or wages section) on the wages disbursement function? 37. materials were not needed, merchandise was not salable). What are the procedures followed for: (a) Return of excess of the materials issued to Jobs or Processes? Account Disable 12. Applications that store, process, or transmit payment card data need approval from the Information Security Officer before they can be upgraded or patched. (c) If any of the charges excluded, is it in accordance with the Rules indicated above? Requirement that the check be made out to Miami University, and be reviewed upon receipt for the following: payer's name, local address, and telephone number. Are all cash sales supported by invoices? If the unit needs to store electronic payment card data for a longer period of time, approval from the Assistant Vice President responsible for the operations of the unit in question, the Chief Investment Officer, and the Information Security Officer allows the electronic payment card data to be stored up to 180 days. Are description and quantities received duly checked against Purchase Orders and with Goods Inspection Reports for quality and conditions? (a) Advised of their Gross earnings, Deductions and Net earnings? Most include general questions pertaining to the companys mission, control environment and compliance situation. Intellectual property (such as patents, copyrights and customer lists). (b) If any of the above Risks not covered, was it in accordance with the managements policy? Content Filtration 6. Are the competitive quotations obtained from two or more suppliers before placing Purchase orders for the same material? Are there approved schemes of Fringe benefits to employees? Are all employees who handle or have any direct or indirect access to cash adequately covered by guarantee bonds? 2. Do such verification reports indicate the damaged and obsolete items of Assets? Is credit card information stored in a customer database? This ICQ is used to evaluate internal controls associated with how revenue is generated, received, recorded, safeguarded, summarized, deposited, and reported. In case of discrepancies disclosed by such reports, what kind of action is taken? (a) Are copies of Purchase Orders and all revisions, if any, sent to the Accounts and Receiving departments ? 29. We offer one-on-one guidance tailored to your mission-critical priorities. Is there any arrangement to review the adequacy of Insurance coverage? An example of data being processed may be a unique identifier stored in a cookie. 26. 20. If so, is there any list? Internal Control Questionnaires: How To See The Complete Picture. Under this approach, the auditor meets with company personnel to discuss a particular element of the internal control environment. Download theSelf-Assessment Questionnaire. Is there any approved list of officials authorised in this behalf? (f) Is Job-wise Materials Issue Analysis Sheet prepared periodically for costing jobs in-progress? Internal Control Questionnaires | Audit Process - Miami University The consent submitted will only be used for data processing originating from this website. Are the Records contemplated at 4 above maintained by those who are independent of the stores personnel? 33. Are check-in and check-out times of employees adequately supervised by a competent official? PDF Internal Control Questionnaire - United States Department of Justice Also, verification that the date is current, the written amount agrees with the numerical amount, and that the check is signed. The IIA 26. Who are generally assigned the task of verification? A COSO internal control questionnaire is a document auditors use to help determine an organization's compliance with internal control system requirements issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO): Internal Control-Integrated Framework. There are several advantages and disadvantages to internal control evaluation questionnaires. Is payment to absentee employees made on letters of authorisation duly endorsed by an official having knowledge of absenteeism of the concerned employees? Are Purchase Orders serially pre-numbered? Is the receiving department denied authority to issue Purchase Orders or to approve Invoices? If not, what is the periodicity? b&. Are physical safeguards over the inventory adequate for its nature? Through these, auditors can evaluate whether a companys internal control systems are effective. 13. Periodic management review of revenue data for trends such as: unexplained variations in sales or sales of certain product lines, changes in ratios such as inventory turnover or shrinkage, comparison of budgeted to actual revenue, etc. Has security been reviewed by IT Services? (iii) Are the standard cost rates reviewed periodically? AccountingNotes.net. The insight gained from the questionnaire also can add value to your business by revealing holes in the control system that may need to be patched to prevent fraud, waste and abuse. Reconciling with stocks and issues? 24. Is credit card information stored in an electronic spreadsheet? There are several tools that auditors can use to evaluate a companys internal control systems. Credit card transactions must be made in person, by telephone, by mail or via a secure University approved internet application. the entity's strategic risk management and internal control system. Does the company keep the Title Deeds of properties in a safe custody? Audit Walkthroughs: The Why and How - CPA Hall Talk Does the receiving department deliver or supervise the delivery of each item received at the concerned stores or the user department location? Adequate physical security over cash (during both storage and transfer). Uploader Agreement. 13. (a) Subject to separate Control account in the General Ledger ? (c) Are advance payments verified and/or entered on the Invoices before being sent to the concerned departments? (a) Are purchases made only from approved? The audit team might request the company's organization chart to ensure that the appropriate individuals are selected to participate. Internal Control Questionnaires | Internal Audit | Marquette University Printed customer receipts that are distributed outside the department must show only the last four digits of the credit card number. (b) If so, are these being sent well in advance? 21. In most circumstances, internal auditors use ICEQs as a method of evaluating the companys internal controls. By asking key questions, IACS often uses an ICQ as a starting point and then supplements it with other information gathering and control evaluation techniques, such as flowcharting and documentation review. Third parties stocks? (e) Is a separate Cash Voucher made out at the time of disbursing unpaid wages? Fire, Flood, Earthquake, Riot, Civil commotion, War, Sabotage? What is the scheme of approval in case of: (a) Purchases from employees, directors and companies in which directors are interested? What is the scheme of Internal Checks in operation to ensure about correct recording in stores? Theft and unauthorized use of stolen credit card numbers. Is the Payroll cross-referenced to such voucher payments? 4. The head of internal audit should report . Refunds and voids processed through the system are reconciled to the above independent authorizations. (b) Transfers from one job to another? Are Stock Records, perpetual or otherwise, maintained by way of the following classifications: Raw materials, Component parts, Indirect materials, Stores and spares, Tools and implements, Sub-assemblies, Work-in-process, Finished Goods, etc. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. By asking key questions, IACS often uses an ICQ as a starting point and then supplements it with other information gathering and control . Adequate management review and analysis of relevant data such as inventory turnover, shrinkage, markdown, and sales trends. 18. How Is It Important for Banks? If paper records are accidentally created containing payment card data, that data will be destroyed with either a cross cut shredder or a confetti shredder. Is there an adequate audit trail and reconciliation procedure for timely detection of shortages? Cashiers do not have access to the total key of their registers. Therefore, controls need to exist for auditors to evaluate them using ICEQs. 12. 13. 24. Do the suppliers always attach relative Purchase Orders with their Invoices? Loss of revenue through inventory shrinkage (theft of goods). 28. Do you distribute receipts outside the department? Webcast: Take Control of Your Audit - Avoid Common Internal Control Missteps Comparison of credits on the Organization's accounting report with the validated deposit slips. By asking key questions, IACS often uses an ICQ as a starting point and then supplements it with other information gathering and control evaluation techniques, such as flowcharting and documentation review. 3. There also may be sections dedicated to mission-critical or fraud-prone elements of the companys operations, such as: Questionnaires usually dont take long to complete, because most questions are closed-ended, requiring only yes-or-no answers. (ii) If not, what studies have been made by the management in these areas ? Loss from poor purchasing decisions (i.e. 10. ICEQs help auditors form an opinion on whether a clients internal control system is reliable. The questionnaire will also help you identify certain areas that are working effectively and others that can be improved. That way, they can develop an understanding of the companys internal controls. Is the statement referred to in (38) above reconciled with the General Ledger Control Account? AOS 85-1 (6/15) INTERNAL CONTROL QUESTIONNAIRE . They may use it as a part of their risk assessment process. 12. ICEQs allow auditors to assess whether internal controls work as intended. Risk that theft will continue if not detected in a timely way. Importance of Internal Control Questionnaire (ICQs), Limitation of Internal Control Questionnaires (ICQs). PDF Part 6 - Internal Control - Aicpa Repairs to building, Repairs to plant, other repairs, etc.? Are the persons engaged in salaries and wages disbursement independent of the preparation of payroll? 1. In other words, the . In 1992, the Committee of Sponsoring Organizations (COSO)1 of the National Commission on Fraudulent Financial Reporting (also known as the Treadway Commission) published a document called: Internal Control - Integrated Framework, which defined internal control as "a process, effected by an entity's board of directors, management and other person. Does the credit card number have to be shared with any other departments? Gartner research, which includes in-depth proprietary studies, peer and industry best practices, trend analysis and quantitative modeling, enables us to offer innovative approaches that can help you drive stronger, more sustainable business performance. (b) Are all such items thoroughly examined and provisions made for the liability in respect of them? For that, auditors can use walkthrough tests or enquiries. 10. The fact that revenues are not recorded is not detected. Are the new Assets acquired during the year also covered by Policies? Is the official authorising Payroll different from the person who carried on test checks or supervised preparation? We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Loss from paying excessive prices for inventory. PDF Evaluation of the internal audit function - KPMG This is a sample of questions in preparation for an internal control audit. 1. Cash receiving and refunding cash duties are separated and refunds are independently authorized. (c) Storage spaces fencings? (c) Who are the officials associated with the determination of rates? Delegation of authority to receive cash to a specific person(s). The tool covers control questions in areas of interest to audit leaders such as revenue, expenditure and general IT controls. For instance, a question might ask for a list of controls that limit physical access to the companys inventory. Heres an overview of the types of questions that may be included and how the questionnaire may be used during an audit. (c) Are the piece-meal issues against Requisition Notes reconciled with the bill of materials? Requirement that the check be made out to Miami University, and be reviewed upon receipt for the following: payer's name, local address, and telephone number. Are all Invoices properly stamped as evidence of being checked for. Purchasing controls (bids, approvals, limits). Results of investigation recorded? : With those approvals, electronic payment card data can be stored for up to 60 days. Adequate supervision over cashiers, including cash handling, cash register balancing, and monitoring overs and shorts. 22. Report a Violation 11. Prohibited Content 3. Is there any Budget for capital expenditure? ICEQs can be time-consuming for auditors to use. Privacy Policy 9. Are the receipts listing and their distribution to (i) the cashier along with cash and cheques, and (ii) the accounts receivable and the general ledger departments for reconciliation and clerical verification, etc. INTERNAL CONTROL QUESTIONNAIRE*Fundamentals of Auditing|Free Online Lessons If you have any questions related to the items covered in the self-assessment, please contact Seth Kornetsky, Executive Director of Audit & Management Advisory Services at extension 7-2068 or via email at seth.kornetsky@tufts.edu. Balancing of physical count to control totals. Does it provide for verification or confirmation of the Assets with third parties? 15. If not, is it approved by an official at a senior level? 20. The purpose of the internal control questionnaire is to help the audit team assess your companys internal control system. Is there a well-laid out written Manual specifying procedures for inventory control? Written instructions are available describing procedures. (b) Stocking arrangements of stores their identification by location codes, stores codes? Does the Accounts department match the suppliers Invoices with the Goods Receipt Notes and Purchase Orders? Is there any arrangement for continuous stocktaking? How frequently does the Company prepare an indirect cost rate schedule S A P analysis (Scarce Available Plenty)? Are the different modes of disbursements: (ii) cash against departmentalised payrolls, and. Loss of sales and/or purchase of excess inventory due to poor physical organization of goods. 29. The insight gained from the questionnaire also can add value to your business by . & The internal control questions provided here should be used as a tool in assessing this system. If not, is there any separate Inspection department? All such records must be stored in a secure fashion, and must be destroyed with either a cross cut shredder or a confetti shredder as soon as the data is no longer needed. Balancing of physical count to control totals. 37. 30. Internal Control Questionnaires - Sensiba This booklet provides internal control questionnaires for a range of topics from operations to finance. Internal audit and internal control. For example, they can use internal controls questionnaires (ICQ) or internal controls evaluation questionnaires (ICEQ). Receiving reports, or other documents documenting incoming shipments of goods. Similarly, ICEQs can be a part of the test of controls that auditors perform. This ICQ is used to evaluate internal controls associated with the confidentiality, integrity, and security of University payment card transactions. Bad publicity due to lack of stewardship. (a) Are the following Risks covered by appropriate Insurance Policies in respect of plant and machinery and buildings, etc. Are excess expenditures scrutinized before supplementary sanctions are obtained and/or made? PDF AASHTO Internal Control Questionnaire (ICQ) for Consulting Engineers - ADOT DOC Internal Control Questionnaire - University of California, Berkeley 33. This is not true. However, they are different from each other. adequately streamlined? Does the entity have a mission statement, objectives and goals? > #` d bjbjmm C & (a) What are the norms fixed for Stock Levels ? Instructions for the trustee: The purpose of the Internal Control Questionnaire (ICQ) is to provide the United States Trustee with an understanding of the internal controls and financial record keeping and reporting procedures implemented by the chapter 7 trustee. Terms of Service 7. International Professional Practices Framework (IPPF), Certification in Risk Management Assurance, Stakeholder, Board, C-suite, and Audit Committee, 2023 Annual Business Meeting Announcement, Emerging Business Models and the Role of Internal Audit. & PDF Internal Audit Checklist- 15-3-17 - Institute of Chartered Accountants To access it and other valuable resources, become a member today or log in! (a) What procedures are followed in regard to the approval of: (b) Does the procedure provide for verification by the Department officer only or also with Time Offices official?