http://www.business.vic.gov.au/busvicwr/_assets/main/lib60208/sbv_checklist_financial_controls.pdf
▌Checklist for Financial Checks
Topics covered
For complete financial management of your business, you need to consider putting financial checks in place to make sure you have a good control over your finances.
A financial check (known as financial controls) is a procedure used to detect and/or prevent errors, theft or fraud, or policy non-compliance in a financial transaction process. Financial checks procedures can be applied by either an individual or as part of an automated process within a financial system.
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Owners of well-managed businesses would answer “yes” to most of the following questions. 1. Basic checks |
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Tick when each is done and keep this checklist as a record
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Is a chart of accounts used?
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Is it detailed enough to give adequate management information?
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Is a double entry bookkeeping system used?
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Someone approves journal entries?
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Do you use budgets and cash projections which are:
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Do you understand the form and contents of the financial statements?
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Are comparative financial statements produced?
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Are the books and records kept up-to-date and balanced?
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Who is responsible for producing financial information?
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Are reasonable due dates imposed?
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Are annual vacations required?
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Are storage facilities safe from fire, etc.?
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Is access to accounting records restricted when appropriate?
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Is insurance coverage regularly reviewed?
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Is there a records retention schedule used?
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2. Revenue
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Tick when each is done and keep this checklist as a record
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Is there a policy for credit approval?
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Are credit files kept current?
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Are credit checks done regularly?
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Are sales orders approved for price, terms, credit and account balance
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Are all sales orders recorded on pre-numbered forms and are all numbers accounted for?
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Do you review the monthly statements for outstanding balances?
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Is accounts receivable subsidiary ledger balanced monthly to control account?
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Is an aging schedule of customers’ accounts prepared monthly?
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Do you authorise write-offs and other adjustments to customer accounts?
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