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OFFICE UNITS

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  • Department IC Plan
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  • What are Internal Controls?
  • What is Effective?
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  • Self Assessment
    • Control Environment
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Self Assessment of Internal Control

Inventory Cycle

Self Assessment of Internal Control Questionnaire

Objectives and Risks

Objectives	Risks
All transactions are approved by authorized individuals.	-Purchase unauthorized materials acquired in excess of need, at inappropriate prices, or on unfavorable terms.
All inventory items are subject to effective custodial accountability procedures and physical safeguards.	-Theft by employees or outsiders; inadequate insurance coverage.
All receipts and withdrawals of inventory are properly recorded and the records reflect actual quantities on hand.	-No basis for comparing actual usage with expected usage; inability to determine material reorder points.
All transactions are properly accumulated, classified and summarized in the accounts.	-Misstated financial statements; concealment of shortages.

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