Self Assessment of Internal Control
Control Environment
Self Assessment
of Internal Control Questionnaire
Objectives and Risks
Objectives |
Risks |
Management attitude recognizes the importance of and
commitment to the establishment and maintenance of a strong system
of internal control as communicated to employees through actions
and words.
|
-Employees unaware of internal control.
-Lack of approved policies and procedures to be followed by personnel.
|
Organizational structure units are clearly defined
to perform the necessary functions and determine that appropriate
reporting relationships have been established.
|
-Organization chart will not be current.
- Employees unaware of reporting relationship in the organizational
structure.
-Duplication of functions by units.
|
Personnel are qualified and properly trained for the
functions in order for control and procedures to operate in the
manner intended.
|
-Personnel not qualified to perform tasks assigned.
-Personnel not adequately trained.
-Lack of continuing education for personnel.
-Job descriptions not coordinated with actual job performances.
|
| Delegation of authority or limitation of authority
exists to provide assurances that responsibilities are effectively
discharged. |
-One employee controls all phases of a transaction.
-Management goals are not communicated to staff employees.
-Duplication of functions by employees.
|
| Policies and procedures that are documented provide
a basis for reviews, follow-up evaluations and audits. |
-Functions are not performed uniformly among units.
-Statutory requirements not being met.
-Lack of support for functions and transactions performed.
|
Budgetary and reporting practices provide benchmarks
by which management can measure accomplishments.
|
-Management does not have guidelines to measure
performance.
-Management can not communicate expectations to the organizational
units.
-Unusual transactions or events will not be detected.
-Management can not determine if goals are being achieved.
|
Organizational checks and balances provide authority
for certain functions that minimize the potential for waste, loss
or misuse of assets.
|
-These functions will not perform their responsibilities; therefore
the potential for waste, fraud and abuse is present. |
