Introduction to this document

Internal control checklist

One of the keys to improving profits is reducing leakage through inefficient processes and managing undue risks in the business. As an accountant it’s your responsibility to establish and maintain internal controls.

Key questions

Well-designed and monitored internal controls can protect against errors, omissions, delay and fraud. Use our Internal Control Checklist to highlight areas where controls in your business could be introduced or improved.

The areas we have focused on are: (1) sales; (2) cash receipts; (3) disbursements; (4) purchases; and (5) payroll. In each section we have phrased the questions in such a way that all you have to answer is “Yes” or “No”. However, we have left space for you to make comments if it’s actually a “Yes, but....” or “No, but ....” type of situation.

Once you have answered all the questions review your “No” answers to see if you now can introduce the procedures which will turn your answer to a “Yes”.

Turn questions into action

If you are drafting accounting procedures from scratch, simply change the questions on our internal control checklist into actions.

For example, using the sales questions you can easily get to:

  • review customer statements monthly
  • reconcile the total of the debtors ledger balances to the control account balance monthly
  • prepare an ageing schedule of customers' accounts monthly
  • no write-offs or other adjustments to be made to customer accounts without authorisation from the accountant etc.