General:
1. Does the entity have adequate written statements and explanations of its accounting policies and procedures?
(Written accounting policies and procedures may include such matters as:
Chart of accounts accompanied by explanations of the items to be included in the various accounts.
Identification and description of the principal accounting records, recurring standard entries, and requirements for supporting documentation. For example, this may include information about the general ledger, source journals, subsidiary ledgers, and detail records for each significant class of transactions.
Expression of the assignment of responsibilities and delegation of authority, including identification of the individual positions that have authority to approve various types of recurring and non-recurring entries.
Explanations of documentation and approval requirements for various types of recurring and non-recurring transactions and journal entries. Documentation requirements, for example, would include the basis and supporting computations required for adjustments and write-offs.
Instructions for determining an adequate cutoff and closing of accounts for each reporting period.)
2. Are accounting policy and procedure manuals updated as necessary?
3. Are manuals distributed to appropriate personnel?
4. Do procedures exist to ensure that only authorized persons can alter or establish a new accounting principle, policy, or procedure to be used by the entity?
5. Does the principal accounting officer of the entity have adequate authority over accounting employees and principal accounting records at all locations?
6. Are the principal accounting, treasury, and custody functions segregated?
7. Are the responsibilities for maintaining the general ledger segregated from those for maintaining subsidiary ledgers?
8. Are the responsibilities for maintaining the general ledger and custody of assets segregated?
9. Is access to the general ledger and related records restricted to those who are assigned general ledger responsibilities?
10. Are there adequate facilities for custody of the general ledger and related records?
(Examples of such facilities include fire resistant locked cabinets, vaults, physical barriers, separate rooms, limited access to work areas, alarms, and other detection devices.)
11. Is appropriate insurance coverage maintained in amounts required by statutes or entity policy?
(Such insurance may include loss of records coverage and fidelity bonding of employees in positions of trust.)
12. Are the preparation and approval functions for journal entries segregated?
13. Are all journal entries reviewed and approved by designated individuals at appropriate levels in the entity?
(The levels at which journal entries are reviewed and approved will usually vary depending on whether the entries are recurring, or non-recurring, routine or unusual, accumulation of routine transactions, or adjustments of balances requiring estimates and judgments.)
14. Are all journal entries adequately explained and supported?
(Explanation and support for an entry should be sufficient to enable the person responsible for its review and approval to reasonably perform this function.)
15. Do all journal entries include approval in accordance with management's general or specific authorization?
16. Are all journal entries subject to controls over completeness of processing?
(Examples of controls over completeness of processing include pre-numbering of journal vouchers and accounting for all numbers used, accumulation of control totals of dollar amounts debited and credited, and standard identification numbers for recurring entries.)
17. Do all journal entries include adequate identification of the accounts in which they are to be recorded? | ___
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