Financial Close Process Controls Questionaires

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					FINANCIAL CLOSE PROCESS CONTROLS

                                                                                                                                                                                                                                                          Type of
                                                                                                                                                                                                                                                        Deficiency
                                                                                                                                                  Controls                       Controls         Describe the basis for                             (Efficiency, Fin.
                                                                              Does this control    Describe specific activities, programs or      properly                      operating        effectiveness conclusion                               Reporting,       Management Action Plan to
#    Business Activity           Point of Focus/ Control Objective                 exist?         controls in place that satisfy the objective   designed?   Test Procedures   effectively? (including evidence of operation)   Deficiencies Noted    Compliance)          Address Deficiencies
                          Accounting policies exist, are kept current, and
 1 Financial Close        are communicated to the appropriate personnel.
                          Procedures are in place to ensure that all
                          transactions are recorded in accordance with
 2 Financial Close        GAAP.
                          Close procedures, including due dates,
                          responsibilities, disclosure updates, and
                          account classifications are defined,
 3 Financial Close        communicated, and implemented.
                          The standard corporate reporting format is
 4 Financial Close        utilized.
                          Access to accounting and reporting applications
 5 Financial Close        is limited to the appropriate individuals.
                          Journal entry input is restricted to authorized
 6 Financial Close        personnel.
                          There is a checklist of the standard closing
                          journal entries made at month-end, quarter-end,
 7 Financial Close        and year-end.
                          Pre-numbered vouchers are used to ensure that
                          all non-recurring entries are processed only
 8 Financial Close        once in the system.
                          Manual journal entries have adequate supporting
                          documentation and are approved by the
 9 Financial Close        appropriate level of management.
                          Standardized journal entries are used for
10 Financial Close        recurring journal entries.
                          All non-recurring entries are supported by
                          adequate documentation, reviewed before
                          approval and the appropriate management is
11 Financial Close        required to approve these entries.
                          Journal entries are supported and authorized
12 Financial Close        before being posted.
                          Appropriate management is required to approve
13 Financial Close        significant or unusual journal entries.
                          System logic prevents journal entries for which
14 Financial Close        debits do not equal credits.
                          The system will not allow journal entries to be
15 Financial Close        recorded to a closed accounting period.
                          System logic will not allow duplicate journal
16 Financial Close        entry numbers.
                          A procedure detailing the calculation of specific
                          accruals and recording rules exists and is
17 Financial Close        consistently applied.
                          Write-offs and reserves are clearly defined,
                          consistently applied, and monitored in
18 Financial Close        accordance with company policy.
                          All account balances are reconciled prior to
                          closing the books, including confirming that
                          balances agree with related parties (including
                          reconciling subsidiary balances to GL
19 Financial Close        balances).
                          Significant variances in reconciliations are
20 Financial Close        investigated and resolved timely.
                          Fluctuation analysis of actual to budget or prior
21 Financial Close        periods is performed.




Source: www.knowledgeleader.com                                                                                                                                                                                                                                                                      Page 1
                                                                                                                                                                                                                                                          Type of
                                                                                                                                                                                                                                                        Deficiency
                                                                                                                                                  Controls                       Controls         Describe the basis for                             (Efficiency, Fin.
                                                                              Does this control    Describe specific activities, programs or      properly                      operating        effectiveness conclusion                               Reporting,       Management Action Plan to
#    Business Activity           Point of Focus/ Control Objective                 exist?         controls in place that satisfy the objective   designed?   Test Procedures   effectively? (including evidence of operation)   Deficiencies Noted    Compliance)          Address Deficiencies
                          The financial reporting package is reviewed by
                          management before submission to Corporate
                          (the financial statements, or sections thereof,
                          are reviewed by someone independent of the
22 Financial Close        preparer).
                          Duties are appropriately segregated in the
23 Financial Close        closing process.
                          Access/authorization controls are in place to
24 Financial Close        maintain the integrity of the chart of accounts.
                          A procedure is in place to identify and
                          communicate transactions/events that have
                          significant financial accounting and/or reporting
25 Financial Close        implications to the accounting department.
                          All of the critical financial data is captured as
                          close as possible to the source, accurately
                          processed and reported on a timely basis for
                          analysis, evaluation, and use in financial
26 Financial Close        reporting.
                          There are adequate controls over processing
27 Financial Close        programs and transaction files.
                          Policies and procedures are in place for all
28 Financial Close        critical processes.
                          There is ongoing monitoring in the normal
                          course of operations by managers and process
                          owners to assess the effectiveness of the
29 Financial Close        financial reporting process.




Source: www.knowledgeleader.com                                                                                                                                                                                                                                                                      Page 2

				
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