Retailer Invoice Template - Excel by mwm12224


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									                                                                     Office of Internal Audit
                                                                         Audit Program

Audit Objective: To provide assurance that internal controls are operating as intended, and evaluate accuracy of recording financial transactions.
I. The scope of this audit will include a review of FY and current fiscal year XX to-date transactions for accuracy, timeliness, compliance with policies and an
assessment of internal controls.

II. PRELIMINARY                                                                                                W/P               Done By              Date
   A. Draft entrance conference for audit manager's signature. Include the following: audit scope,
   purpose of the audit engagement, and request data to be supplied by auditee prior to entrance
   B. Review previous audit work in department files and review web site information (check for
   compliance with accessibility requirements.)
   C. Identify statutory authority and/or other regulatory agencies; review requirements.
   D. Review preliminary materials provided by auditee
   E. Review web site materials; print at discretion.
       1. For the unit under audit.
       2. From related professional organization web sites for hot topics, trends, publication of
   standards, compliance issues.
   F. Focus reports: Identify relevant accounts, and pull transactions for period under review.
   G. Review funding structure and financial records – chart of accounts, FRS, Budget Office
   materials, financial statements
   H. Prepare Internal Control Questionnaire and submit for audit manager's approval.
    I. Conduct entrance interview(s); administer internal controls questionnaire.
    J. Based upon preliminary reviews, information and materials obtained at the entrance conference,
   and items of special interest to management at the entrance conference, document risks, audit
   objectives and prepare an audit program.
    K. Submit the budget and audit program to the Audit Manager for approval.
   L. Approval of audit program by audit manager for approval.
   M. Approval of audit program by audit manager.

  1. Each audit will be conducted on the basis of the account description form and approved audit
  2. Internal control must be reviewed throughout the audit consider the five components of internal
   a.) control environment - management of the auditable unit
   b.) risk assessment - identification and analysis of relevant risks to the achievement of the unit
   c.) control activities - policies and procedures that help ensure that necessary actions are taken to
  address risks
   d.) information and communication - identification and communication of information necessary
  to operate control activities
   e.) monitoring activities- continuous process that assesses the quality of the internal control
  3. Adequate working papers must be prepared and properly supported.
    a.) Summary of audit findings, recommendations and responses, file section # 500, should be
    b.) Results and conclusions of statistical sampling plan should be written.
    c.) All recommendations must be supported by adequate documentation.
  4. Test compliance with lottery Administrative Procedures and other operating procedures
  including federal and state regulations where applicable.
  5. Review implementation of prior audit recommendations.
  6. Review all areas audited for operational/ procedural recommendations and prepare adequate

  7. Assess purpose and relationship of the activity within the organizational mission and goals.
  8. Financial reports should be reconciled to fund ledger balances and thoroughly reviewed.
    a) Compare gross profit percent with known mark-ups if applicable.
    b) Reversion provision of account balance should be in accordance with account description
    c) Perform ratio analysis, as necessary.
    d) Financial viability of the operation should be assessed.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                                                                                Audit Program
    e) A fund ledger comparative statement of revenue and expenditures should be prepared,
  comparing the period under audit with the prior period.
    f) Obtain explanations for fluctuations in revenue/expenditures between years.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                              Audit Program
  B. PERSONNEL/PAYROLL MANAGEMENT AND ORGANIZATION STRUCTURE                                           W/P   Done By       Date
  1. Time-keeping and Time and Effort Reporting
      a. Review time records and management practices for accuracy, completeness and compliance
  with policies. Include both SPA and EPA employees in sample.
  2. Organizational Structure
     a. Review org. chart and job descriptions
     b. Review personnel evaluations process documentation. Are guidelines followed?
     c. Review personnel classifications and related actions for appropriateness and operational

  3. Assess temporary pay action (1410, 1450, 1110, 1310) controls maintained over payroll charges
  and payroll checks. Indicate the persons and their positions involved in payroll processing.
     a. Trace charges from original time documents to the payroll distribution summary for a test
  month (for hourly employees).
     b. Review personnel charged to the account for reasonableness and appropriate cost-center
  4. Review personnel files maintained by HR for completeness (noting the following; work plans,
  evaluations, W-4, I-9, any actions taken, job descriptions, etc.).
  5. Review the addresses of all employees within this division for duplicate addresses indicating a
  duplicate payment to one individual for payroll related expenses.

  C. FINANCIAL MANAGEMENT AND CONTROLS                                                                 W/P   Done By       Date
  1. Interview staff with fiscal/budget responsibility. Discuss and analyze budget development
  (authority, processing, records) and reconciliation (fiscal review, analysis, and reporting). Can
  utilize e-print usage reports in analyzing the reconciliation process.
  2. Test sample of budget transactions for appropriate documentation, authorization, and
  3. Review financial statements and compare to previous years.
  4. Explain major transfers to/from other accounts.
     a. Test Debt Service transfers against bond agreements.

    b. For transfers funding Special Projects, assess costing, scheduling and overruns management.

  5. Determine if fund ledger entries are being verified against appropriate documentation monthly.
  6. Review journal entries: Analyze for appropriateness and effective practices and controls.

  D. PETTY CASH                                                                                        W/P   Done By       Date
  1. Count and reconcile petty cash funds, change funds and undeposited receipts, if any. (Note:
  Petty cash can be counted anytime during the audit.)

   a. Count in presence of custodian, obtain signature for receipt of funds and prepare in ink.

    b. List any employees' or postdated checks and personal checks of custodian, loans or IOU's.
    c. Document undeposited receipts.
    d. Examine supporting documentation for expenditures not reimbursed, including those said to
  be in process at Accounts Payable.
    e. Ascertain if there is any other cash on hand.
  2. Verify cash fund with Cashier's Office.
  3. Determine if amount of petty cash and/or change fund is reasonable and necessary.
  4. Review physical security related to cash and undeposited receipts.
  5. Trace any deposits counted to deposit receipts.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                                                        Audit Program
  E. REVENUES                                                                                             W/P   Done By       Date
  1. Identify all revenue sources from ACL file; extract current year revenue transactions and
  summarize by account number and object code.
  2. Interview responsible person for detail of processing all revenue sources.
  3. Review written procedures on cash receipting/revenue management.
  4. Test and evaluate adequacy of various revenue and reconciliation processes. In the case of
  student fees; review supporting documentation, posting to student account, feed to FRS, and
  reconciliation processes.
  5. Review refund records, determine if properly approved and processed.
  6. Review accounts receivable and past due processes.
  7. If special services are performed for outside parties on an extensive and/or continuing bases,
  determine if a contract exists and has been signed by appropriate officer(s). Determine provisions
  of the contract have been reviewed by management, legal, etc.
  8. Trace detailed receipt documents for two separate two week periods, from two different
  months. For these two months prepare summary and reconciliation of receipts to deposits to the
  fund ledger. (Alternative: Follow your specific approved statistical sampling plan, and specific
  approved method to verify the frame from which samples are taken by FOCUS report or ACL, as
  applicable). Review ledgers for balance of audit period for unusual items.
    a. Trace receipts from original source documents to a cash journal, if applicable, and
  subsequently to the fund ledger.
    b. If cash journal does not exist, then trace duplicate deposit slips with supporting detail to the
  fund ledger.

   c. Overrings/voids should be initialed by an individual independent of the cashiering function.
   d. Schedule overages or shortages for your test period
    e. Funds should be deposited in accordance with the Administration Procedures.
    f. Receipts not recorded on cash register or prenumbered documents should be explained
    g. Determine that appropriate sales tax was collected and deposited. Review appropriate
  9. Review the numerical sequence of forms used and on hand, except where large quantities are
  involved in which case a sample group should be tested.
  10. Interdepartmental Sales: Trace and reconcile detailed receipt documents to interdepartmental
  invoices on fund ledger for one month. Trace representative sample of IDI's to the account
  charged. Review/test interdepartmental charges for May/June for the possibility of advance
  11. If gifts and grants have been received, see that appropriate gift and grant procedures and forms
  have been followed.
  12. Tickets
    a. If tickets are sold, you must account for all tickets either through revenue or as unsold.
    b. Tickets ordered can be verified by reference to ticket manifest or invoice vouchers.
    c. Obtain a certified copy of the ticket manifest directly from the vendor.
    d. Review ticket taking procedures.
    e. Review disposition of unused tickets and method of handling complimentary tickets.
     f. Review physical protection afforded tickets.
  13. If statistical sampling was used, prepare summary and conclusions, including comparison of
  actual occurrence rate with planned occurrence rate.
  14. Pricing Test
    a. Compare prices charged with price list, for a sample of invoices (for ex: room rentals,
  equipment rentals). The extent of this test will depend; in part, on whether sale prices are
  verified in connection with inventories and/or expenditures.
    b. Determine date of price lists, i.e., when prices were last changed.
    c. Evaluate adequacy of prices, for each category of sales in total.
  15. Shipping
    a. Determine separation of duties between preparing invoices and handling and shipping of
  merchandise or services.
    b. Trace sample of shipping records to sales invoices and a sample of sales invoices to inventory
  16. Schedule and explain sources of income.
  17. Schedule and support all interfund transfers for the period under audit.
  18. Determine that revenue is being reconciled to the fund ledger monthly.
  19. If special services are performed for outside parties on an extensive and/or continuing basis,
  determine if a contract exists and has been signed by appropriate officer(s). Review the provisions
  of the contract and compliance thereto.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                                                           Audit Program
  F. FIXED ASSETS AND INVENTORY                                                                        W/P   Done By       Date
  1. Determine whether operation under audit has verified the most recent June 30 equipment
  inventory listing.
  2. Trace sample of equipment from the last listing to the actual equipment and from equipment to
  the listing.
  3. Check disposition of any equipment disposed of during the past year including items surplused,
  transferred, or sold to other departments. Review for proper forms and signatures.
  4. Review any substantial disposal items coded "Stolen or Missing". Determine that security was
  5. Review any substantial disposal items coded "Stolen or Missing" in prior years to see if assets
  were followed up on and accounted for (removed) properly.
  6. Review physical security afforded equipment.
  7. Determine whether there are any significant inventories per OSC guidelines; assess for
  appropriate management.

  8. Review any significant leases and determine if properly recorded (e.g. capital v. operating).

  G. SECURITY, SAFETY AND ACCESSIBILITY                                                                W/P   Done By       Date
  1. Review all active NCAS, ES accounts for this department.
  2. Review Security reports to determine appropriate screen access.

  3. Review the department’s procedures for retrieving lottery property and removing computer
  access when an employee leaves lottery (keys, procurement card, lottery equipement.)
  4. Review security afforded information systems, if in- house, critical to the operations of the
  department and/or key to decision making. Determine:
  a. Personal computing equipment is secure.
  b. Critical files and programs are identified and have backup procedures.
  c. Capability exists to recreate lost data through proper retention of source documents.
  d. Passwords or other controls exist to protect program and sensitive data files.
  e. Data entry is authorized (i.e., signatures on sources documents) and accuracy of input is
  f. Applications are well-documented, including all systems changes/updates.
  5. Review security reports relating to incidents.
  6. Review Business Continuity Plan.

  H. EXPENDITURES AND TRANSFERS                                                                        W/P   Done By       Date
  1. Use ACL to analyze data for period under review. Investigate any unusual transactions.
  2. Choose a representative sample of expenditures from various accounts. Review for proper
  documentation, authorization, coding, and compliance with policies and procedures. Include
  PO’s, check requests, and IDI’s in sample:
    a. Travel
    b. IDI’s (debits)
    c. Procurement card
    d. Entertainment and Food
    e. Contracted Services
    f. Misc. Other Supplies/Services
  3. Review processing activity for reasonableness and effectiveness. Note areas where
  improvements are needed.
  4. Review one month’s phone bill, noting any unusual calls by time or duration. Obtain
  explanation if needed.
  5. Review utility charges, noting trends, rate schedules, review for reasonableness, and possible
  savings. Obtain explanation if needed.
  6. Using ACL, note unusual preference for particular vendors, for possible follow-up in
  7. Indicate in an audit memo what control is maintained over payroll charges and payroll checks to
  ensure that services were received for amounts paid. Indicate the persons and their positions
  involved in payroll processing.
    a. Trace charges from original time documents to the payroll distribution summary for a test
    b. Review personnel charged to the account for reasonableness and appropriate cost-center
  8. Budgeted Accounts
    a. These accounts should be audited in connection with your regular audit if they are related to
  the accounts under audit.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                                                        Audit Program
   b. Determine the basis of charging salaries and other between clearing and budgeted funds.

  9. Where applicable, review the expenses to ensure that costs are properly allocated/recharged.
  10. Review & explain major transfers of expenditures to/from other accounts.
  11. Determine that amounts appearing in transfer column have been properly approved.

   b. Any transfer of budgeted funds should agree with budget authorization by the Budget Office.

  12. Determine if fund ledger entries are being verified against appropriate documentation monthly.

  I. PROGRAMS For each program selected:                                                               W/P   Done By       Date
  1. Interview coordinator about processes.
  2. Review contracts for valid dates, proper signatures, etc.

  3. Select a sample of activity to verify documentation is complete, follows adopted processes, has
  adequate controls. Include both summer and semester programs in sample.
  4. Review any retailer or player surveys in department files.
  6. Evaluate process for compliance with applicable regulations.
  7. Review any agreements or contracts with other agencies or entities; contractors, consultants,

  III. CONCLUSION                                                                                      W/P   Done By       Date
  A. Submit workpapers and summary of findings for review.
  B. Clear review items and draft comprehensive audit memo indicating tests performed, with audit
  report of findings and recommendations attached.
  C. Exit with department and obtain their responses along with any necessary revisions.
  D. Incorporate responses into report for final distribution to department and senior/executive

  E. Update file for any changes to/or additional reports necessary for performance of next audit.
  F. Determine that all permanent file documents are returned to the file after completion of the
  G. Note audit follow-up date, within a three- to six-month period, if required.

C:\Docstoc\Working\pdf\ec104dd2-931e-4e9a-8a6c-66bb6ea7c56e.xls                                                        Audit Program

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