Is the custody of checks after signature and before mailing handled by an employee independent of all payable, disbursing, cash, and general ledger functions? a. For each of the preceding questions, state the transaction-related audit objective(s) being fulfilled if the control is in effect.
Questions 1 through 9 are typically found in questionnaires used by auditors to obtain an understanding of internal control in the acquisition and payment cycle. In using the questionnaire for a client, a “yes” response to a question indicates a possible internal control, whereas a “no” indicates a potential deficiency. 1. Is the purchasing function […]