Checklist DB 1
[1-1] Responsibilities for general ledger maintenance are separate from those of subsidiary ledger control.[1-2] Journal entry preparation is segregated from the approval function.[1-3] Custody of assets is distinct from accounting responsibilities.[1-4] Different personnel are assigned to review and approve financial reports from those preparing them.[1-5] In electronic processing environments, separation of duties is maintained through system access controls.[2-1] Written procedures ensure that only authorized personnel can modify accounting principles or policies.[2-2] A formal organization chart defines reporting lines and responsibilities, ensuring clarity in accounting functions.[2-3] The principal accounting employee oversees accounting records at all locations.[2-4] Regular reconciliations of the general ledger with subsidiary ledgers and other records ensure accuracy.[2-5] Source documents (e.g., invoices, contracts) are maintained to provide an audit trail.[2-6] The usefulness and reliability of internal financial reports are regularly evaluated.[2-7] All journal entries are reviewed, approved, and documented with adequate descriptions or supporting documents.[3-1] Monthly and quarterly reconciliations of accounts are conducted to ensure the accuracy of balances.[3-2] Regular reviews of key estimates (e.g., reserves, allowances) are performed to ensure they reflect current conditions.
[4-1] Procedures for period-end closing ensure that all relevant transactions are recorded within the reporting period.
[4-2] A formal closing schedule is followed to ensure timely and orderly closing of accounts.
[4-3] Valuation reserves and key estimates are reviewed and approved during the closing process.
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