INTERNAL CONTROL ISSUES CHECKLIST

EACH OF THE FOLLOWING ITEMS SHOULD BE ADDRESSED FOR EACH PROCESS OR FUNCTION IN THE ORGANIZATION
(SOME MAY BE ADDRESSED WITH A "NOT APPLICABLE")

1. LEGAL AUTHORITY

• OTHER LEGAL REQUIREMENTS

2. DOCUMENTATION OF POLICIES AND PROCEDURES INCLUDING:

• IDENTIFICATION OF "PRODUCT" OR OUTPUTS
• IDENTIFICATION OF CUSTOMERS
• REQUIREMENTS STATEMENTS
• IDENTIFICATION OF PROCESS INPUTS AND REQUIREMENTS
• IDENTIFICATION OF SUPPLIERS AND METHOD OF SUPPLY
• PROCESS FLOW AND TASK DESCRIPTIONS
• DELEGATIONS OF AUTHORITY
• ASSIGNMENT OF RESPONSIBILITIES
• SEPARATION OF DUTIES (AUTHORIZING, PROCESSING, RECORDING, REVIEWING)

3. SAFEGUARDING OF ASSETS - ACQUISITION, ACCESS, USE, CUSTODY, DISPOSITION

• CASH
• PHYSICAL ASSETS
• INFORMATION (RECORDS)

4. ADEQUACY OF RECORDS

5. ACCURACY OF RECORDS

6. PLANNING AND BUDGETING INCLUDING CONTINGENCY, LONG TERM AND SHORT TERM PLANNING

7. ADEQUACY AND ACCURACY OF PERFORMANCE MEASURES

• HOW DO YOU KNOW THE JOB IS GETTING DONE?
• HOW DO YOU KNOW THE JOB IS GETTING DONE RIGHT?

8 PERSONNEL

• POSITION DESCRIPTIONS
• QUALIFICATIONS AND REQUIREMENTS
• PERFORMANCE MEASUREMENT
• TRAINING

9. PRIOR AUDIT FINDINGS; CORRECTIVE ACTION TAKEN AND RESULTS