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P R O F E S S I O N A L . . C O N T R O L L E R S
CHECKLIST FOR ASSESSING ACCOUNTING SYSTEM
(Advice to Colleagues)
by Adrian W. Hollander, C.P.A., CISA, CIA, CBA, CFSA,
President of COMPLUS Inc. – Professional Controllers
Agenda for first day’s work – Testing the effectiveness of the existing bookkeeping system should be the first step. The result will probably be a "to do" list for future work. To be of service to management, financial records must be accurate and reports must be reliable. Consider the following:
- o .. Determine status of financial/management information.
- o .. Most recent financial statements
- o .. Other routine management information report
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- o .. Discuss divisions of management accountability.
- o .. Organization chart
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- o .. Determine the condition of cash management records.
- o .. Checkbook balance (daily cash) computation
- o .. Bank reconciliations
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- o .. Determine the condition of accounts receivable records.
- o .. Accounts Receivable Aging
- o .. Reconciliation to General Ledger
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- o .. Determine the condition of accounts payable records.
- o .. Accounts Payable Aging
- o .. Reconciliation to General Ledger
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- o .. Determine the condition of inventory records.
- o .. Stock status report
- o .. Reconciliation to General Ledger
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- o .. Determine the status of unbilled work.
- o .. What jobs are completed and not billed?
- o .. What jobs are in-process?
- o .. What jobs are in backlog?
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- o .. Discuss procedures for assuring that sold work is performed and billed.
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- o .. Discuss procedures for assuring that disbursements are for authorized goods and services, and that they have been received or provided.
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- o .. Discuss procedures for assuring job profit.
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- o .. Identify all transaction journal sources.
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