Questionnaire Checklist for Basic Activities in Expenditure Cycle
12) Questionnaire Checklist for Basic Activities in Expenditure Cycle.
Is data encrypted?
No. If data is not encrypted then someone who is not authorized can obtain the personal information of suppliers.
Is there a recovery mode and is data regularly backed up?
No. If a recovery mode and data backup is not in place then data could be lost permanently.
Is access restricted to the master file of suppliers?
No. If access is not restricted then unauthorized personnel could add fictitious suppliers and commit fraud.
Are competitive supplier bids taken?
No. Then it likely that you may overpay for materials and products.
Are there proper data entry controls in place?
No. If the proper entry controls are not in place then errors can occur in supplier receivables and payables, which can cause an overpayment.
Are all invoices filed in a timely manner?
No. If invoices are not filed by the due date then discounts will be lost.
Is a perpetual inventory system used?
No. Then it likely that inventory efficiency will suffer and cause shortages/overages.
Are there physical inventory checks?
No. Then it is likely that spillage, theft, and etc. can occur. Also, physical checks/counts should be taken to increase the effectiveness of a perpetual system.
Is access to physical inventory restricted?
No. Without restrictions to physical inventory, opportunity for theft increase.
Are deliveries inspected for quality?
No. If deliveries are not inspected then it can increase the number of defected products and/or decrease customer repurchases.
Did the receiving department have training on how to account for deliveries and when to accept them?
No. If the employees do not properly account for deliveries then you could be paying for products not received. And if they accept deliveries absent purchase orders, then you could have idle inventory and increased carrying costs.
Are budgets created?
No. Without budgets the opportunity to commit fraud increase as
Is data encrypted?
No. If data is not encrypted then someone who is not authorized can obtain the personal information of suppliers.
Is there a recovery mode and is data regularly backed up?
No. If a recovery mode and data backup is not in place then data could be lost permanently.
Is access restricted to the master file of suppliers?
No. If access is not restricted then unauthorized personnel could add fictitious suppliers and commit fraud.
Are competitive supplier bids taken?
No. Then it likely that you may overpay for materials and products.
Are there proper data entry controls in place?
No. If the proper entry controls are not in place then errors can occur in supplier receivables and payables, which can cause an overpayment.
Are all invoices filed in a timely manner?
No. If invoices are not filed by the due date then discounts will be lost.
Is a perpetual inventory system used?
No. Then it likely that inventory efficiency will suffer and cause shortages/overages.
Are there physical inventory checks?
No. Then it is likely that spillage, theft, and etc. can occur. Also, physical checks/counts should be taken to increase the effectiveness of a perpetual system.
Is access to physical inventory restricted?
No. Without restrictions to physical inventory, opportunity for theft increase.
Are deliveries inspected for quality?
No. If deliveries are not inspected then it can increase the number of defected products and/or decrease customer repurchases.
Did the receiving department have training on how to account for deliveries and when to accept them?
No. If the employees do not properly account for deliveries then you could be paying for products not received. And if they accept deliveries absent purchase orders, then you could have idle inventory and increased carrying costs.
Are budgets created?
No. Without budgets the opportunity to commit fraud increase as