Pinnacle: Accounts Receivable and Master File
Key Controls | Transaction-Related Audit Objective | Test of Control | Substantive Test of Transaction | 1. Segregation of the purchasing, receiving, and cash disbursements functions. | Job responsibilities are correctly divided amongst personnel (classification). | Employ different personnel and have sign offs to ensure that no one person is performing multiple functions to prevent any types of fraud. | Trace a purchase order (PO) from fulfillment to initiation to determine if the proper stakeholders approved the PO and if the order was fulfilled correctly. | 2. Independent reconciliation of the monthly bank statements | Compare accounts for discrepancies (posting and summarization). | Examine and ensure that all in house and bank data coincides to prevent and /or correct possible errors. | Obtain originals of the statements pertaining to six months of the audit period and reconcile. Compare the reconciliation with the one on file. Confirm who completed the independent reconciliation and his/her credentials. | 3. Use of pre-numbered voucher packages, properly accounted for | Voucher packages are correctly classified (classification). | Voucher packages will be organized in advance so that there is no or less confusion and more efficiency. | Trace selected group of pre-numbered vouchers back to the tracking log | 4. Use of pre-numbered checks, properly accounted for | Checks are correctly classified (classification). | Checks will be organized in advanced so that there is no or less confusion and more efficiency. | Trace selected group of pre-numbered cashed checks back to the journal | 5. Use of pre-numbered receiving reports, properly accounted for | Receiving reports are correctly classified (classification). | Receiving reports will be organized in advance so that there is no or less confusion and more efficiency. | Trace selected group of pre-numbered receiving reports back to file log | 6. Internal verification of