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The Internal Control Questionnaire

The Internal Control Questionnaire - Yes the company does...

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The Internal Control Questionnaire – Control Environment 1. Has the Client Prepared an Organization Chart? No, Apple Blossom Cologne Company did not prepare an Organization chart and the reason they gave for this was that their company is small and all the employees know their responsibilities. Apple Blossom Cologne Company did present information about their employees, the title they hold, who they report to, and the jobs they do in their Permanent File Materials 2. Is there an audit committee of the board of directors? No, since the company is small management doesn’t believe that a formal audit committee is necessary. The Controller and Treasurer both take on the responsibility to monitor the financial progress of the company, while Larry Lancaster and James Martin act as liaisons with our firm. 3. Is a budget prepared for control purposes, showing variances from planned performances?
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Unformatted text preview: Yes, the company does have a monthly budget, which are closely scrutinized, exceptions investigated, and explanations obtained for significant variances. 4. Are accounting procedures set out in writing? No, Apple Blossom relies on our external audit to assure that accounting policies and procedures are accurate. 5. Is there an internal audit function? No, Apple Blossom does not have an internal audit department. The controller, treasurer, and production supervisor closely scrutinize all financial and nonfinancial operations. 6. Are all personnel who have accounting responsibilities required to take annual vacation? No, 7. Are output devices in a secure area that limits access only to those authorized? No, the printers are available to anyone, but there are restrictions for employees to see information which is not needed for them to complete their daily tasks....
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