Internal Control Examples

RobertA

ACCA F8考试：Internal Control Examples
1 Requisitions
Orders should be requisitioned by the user department and authorised by the head of department.
Sequential numbering should be checked for completeness.
A buyer should coordinate requisitions (to secure value for money).
An economic order quantity (EOQ) inventory system or checks on physical quantities held (to prevent overstocking).
2 Purchase Orders
Purchase orders should be raised in an order ("buyer") department which is independent of all other departments.
Purchase orders must be authorised order forms which are sequentially pre-numbered. Orders must be authorised and the sequence periodically checked for completeness.
Pending (unfulfilled) orders should be reviewed regularly to ensure that purchasing requirements are met.
3 Goods Received
Goods should be inspected when received (product description, quantity and quality) before being accepted.
Documentation accompanying goods received (e.g. the supplier's despatch note) should be matched to a purchase order to confirm that the goods were ordered.
4 Purchase Invoices
Invoices should be recorded promptly (e.g. in purchase daybook) and sequentially numbered on receipt.
Invoices should be arithmetically checked and matched to the GRN and purchase order.
Performance of these checks should be evidenced on each invoice (e.g. by initials in a "grid stamp").
5 Recording
Batch control over input (i.e. a control total of a batch of invoices is pre-determined and agreed after processing) to ensure accuracy and completeness.
Maintenance of a purchase ledger control account, monthly reconciliation to a list of trade payable balances and independent review thereof.
Monthly reconciliation of balances in the trade payables ledger to suppliers' statements to ensure complete and accuracy of postings of invoices.
6 Cash Payments
The person who signs cheques or bank drafts should not be involved in the authorisation, recording and custodial functions.
Two signatures should be required for larger payments.
All cheques should be issued in sequential order and their sequence should be controlled.
Unused cheque books should be kept under lock and key.
Spoiled or cancelled cheques should be retained.
No cheque or other payment order should be raised without supporting documentation, including the invoice, GRN, and purchase order.
Invoices and requisitions should be stamped "PAID".
The payments system should be supervised by a responsible official who oversees and reviews monthly bank reconciliations.
7 Overall Controls
The buyer should be independent of the bookkeeping functions, inventory handling and recording and payment functions (i.e. segregation of duties).