Question

Prepare an internal control questionnaire to be used in evaluating the internal control over cash receipts and cash disbursements. The internal control questionnaire should elicit a yes or not response to each question.

Answer 1

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.?

2. Is the mail log prepared by someone independent of the cash receipts process?

3. Are checks stamped with a restrictive endorsement immediately upon receipt - by the cashier before putting the check in the cash drawer or by the person opening the mail?

4. Is cash counted and verified when cashiers receive their drawers?

5. Is only one cashier able to access each cash drawer at any given time so that cash will at all times be in the possession and control of only one person?

6. Are cash drawers assigned to one person and not shared across shifts / employees?

7. Is a receipt given for all transactions that are conducted in person - whether by cash register or pre-numbered receipt?

8. Are duplicate copies of receipts retained?

9. Are manual receipts issued from a bound book that has prenumbered slips?

10. Are receipts issued in sequence?

11. Are receipt books regularly reviewed for missing receipt numbers by someone other than a cashier?

12. Are voided pre-numbered documents kept in the bound receipt book?

13. Is a change fund (this is apart from a petty cash fund) issued by Financial Services used to make change for transactions?

14. If applicable, are cash register summary reports reconciled to the cash count at the close of a shift?

15. Are the following cash register controls used:

a. Locked-in-totals?

b. Over- or under-ring vouchers signed by supervisor?

c. Voided copies of receipts retained for audit purposes?

16. Do cash register procedures reflect proper daily checkout and documentation?

17. Are locked-in audit copies of receipts used where appropriate?

18. Are cashiers provided separate cash drawers to establish accountability?

18. . Are cash drawers locked during a cashier’s absence?

19. Are receipts recorded promptly and deposited within 24 hours if greater than $500, or at least once weekly if less?

20. Are all funds received deposited with no funds being held back for change, petty cash, etc.?

21.. Are deposit slips prepared in at least duplicate form?

22. Do you use a either a locking bank bag or a sealing plastic tamper proof bag for deposit?

23. Do two people accompany the departmental deposit from the office to the nearest depository?

24. Do you perform background checks and fingerprinting on all new employees who handle cash?

25. Do all personnel who handle cash have access to, and knowledge of, the applicable university policies?

26. Are departmental policies and procedures current and in writing regarding how the department is to comply with University requirements regarding the receipt, recording, safeguarding, deposit, and reconciliation of receipts? (Receipts include cash, checks, and credit card transactions.)

27. Are cash funds periodically counted on a surprise basis by an independent employee?

28. Are all cashier overages and shortages recorded in a log that is regularly reviewed by BOMs?

29. Are cash overages and shortages recorded in the financial system?

30. Does management investigate all substantial variations from norms such as cash register voids, no sales, refunds, errors, revenue levels, etc.?

31. Does someone independent of the cash receipts process reconcile payment receipts to receipt records (receipts, mail log, cash register) on a daily basis?

32. Is the payment receipt to receipt record reconciliation regularly reviewed by management?

33. Are adequate physical facilities such as a safe or locking drawer provided for safeguarding cash?

34. Is cash always safeguarded when unattended – including end of shift, lunch, bathroom breaks, etc.?

35. Are receipt books safeguarded when unattended?

36. Are safe combinations and keys to lockboxes restricted to a minimum number of employees?