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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
 
o .. Discuss divisions of management accountability.
o .. Organization chart
 
o .. Determine the condition of cash management records.
o .. Checkbook balance (daily cash) computation
o .. Bank reconciliations
 
o .. Determine the condition of accounts receivable records.
o .. Accounts Receivable Aging
o .. Reconciliation to General Ledger
 
o .. Determine the condition of accounts payable records.
o .. Accounts Payable Aging
o .. Reconciliation to General Ledger
 
o .. Determine the condition of inventory records.
o .. Stock status report
o .. Reconciliation to General Ledger
 
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?
 
o .. Discuss procedures for assuring that sold work is performed and billed.
 
o .. Discuss procedures for assuring that disbursements are for authorized goods and services, and that they have been received or provided.
 
o .. Discuss procedures for assuring job profit.
 
o .. Identify all transaction journal sources.
 

 

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