Internal Control System Checklist

Topics: Internal control, Audit, Financial statements Pages: 3 (751 words) Published: April 16, 2013
Internal Control System Checklist
Monday December 03, 2010
Dr. YouKnew


Internal control systems are purposed to aid in managing an array of risks, while monitoring the integrity and reliability of operational and financial data. Internal control systems ensure the proactively of audits, at the same time as serving to ensure that policies and procedures are enforced to protect the company’s financial information, limiting accounting inaccuracies and fraud. The following checklist is a tool to ensure that the objectives of internal control systems are met.

Internal Control System Checklist
Ethical Governance and Standards
Ethical standards are the groundwork for internal control systems, where integrity is the basic principle. Business ethics show characteristics of acceptable business conduct, while ethics in internal control systems ensures that these standards are communicated, executed, reinforced, and monitored. When considering the following checklist for evaluating internal controls, three phases of the control evaluation are also applied. The three phases are understanding, assessment, and testing.

I.Ethics & GovernanceYESNOComments
Are the ethical standards exemplified by the board of directors? Are ethical standards reviewed with new employees either in orientation or by pamphlet? Are the ethical standards woven into employee evaluations? Are handbooks provided for ongoing review of ethical standards? Is there a process in place to review and correct bad ethical calls? Are ethical standards woven into business standards?

Are fraudulent attempts in reporting communicated as intolerable to employees and management? Electronic Data Processing
Electronic data processing guarantees against improper human intervention with computer processing and other transactions in a given organization. Computer programs help prevent access to certain information across departments and roles. Within...
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