Internal Audit Questionaire
Company Name
Person Completing Form
First Name
Last Name
Title
1. Alarm System Security
If your company has an alarm/monitoring system, please complete the following:
i. What type of system is in place (video surveillance, motion detectors, etc)?
ii. Are there any areas that are not protected?
iii. Does each person or service provider have a unique access code?
iv. Do you receive open/close reports from your alarm system provider? If so, who reviews the open/close reports?
2. Inventory Management Process
a. Is inventory kept in a secure location that is locked when employees are not present?
b. Does your company participate in the WIN Cycle Count Program?
c. Are periodic cycle counts taken and adjustments made to the quantity on hand via the “CC” adjustment feature in WISE? Who normally does these counts?
d. How often are average cost changes made to inventory items?
e. Has your WGS Office ever questioned any inventory cost changes you have made?
f. Is there any material stored at your company that is NOT included in your WISE inventory data? If so, where did the material come from and do you have any lists of the material?
g. Are there any processing errors in the inventory management cycle? If so, how are they resolved?
3. Cash / Deposit Process
a. Who collects the funds for deposit and who is the backup (if any)?
b. Who scans the checks in and who is the backup (if any)? If checks are not scanned, please provide detail surrounding the process.
c. Who prepares the deposit and who is the backup (if any)?
d. Who takes the deposit to the bank and who is the backup (if any)?
e. Is the bank deposit ticket “O-180” printed and compared to the deposit ticket total?
f. Is the “Payments Received Journal” form (AR21) prepared and printed daily?
g. Are cash receipts prepared daily and reviewed by the local company president or someone independent of the preparer on the O-180-A?
h. What thresholds, if any, are in place with respect to when cash deposits and subsequent trips to the bank are made?
i. What are the funded amounts of each cash box and the petty cash? (Box/Custodian and Funded Amount of Each)
j. How often are the cash boxes reconciled?
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4. Sales Orders
a. What process does your company follow with respect to sales orders (be sure to include how often sales orders are confirmed and who is responsible for confirming)?
b. Which employees have the ability to delete sales orders in WISE?
c. What process does your company follow regarding customer packing slips whether a counter sale, delivery or drop at a job site?
d. How are your signed customers packing slips filed?
e. Is there a periodic review of the open sales order report (if so, by whom, frequency and what items are followed up on)?
f. Is there a periodic review of the lost sales report within Wise (if so, by whom, frequency and what items are followed up on)?
g. Is there a periodic review of the A/R aging report? What process does the local company follow with respect to the review of the report (i.e. follow up with customers over X days, including who reviews and the frequency)?
h. Are there any sales orders held and not confirmed once the material is provided to the customer? Please have all sales orders held available for review during the audit as these can alter inventory counts between the system and physical.
i. What is the current process around customer statements at your company (do you use central print, what is the monthly closing day established for your company, who mails if it is maintained internal and when)?
j. Are any customer statements not forwarded to customers (credit balance, select customers…)?
k. Is there a periodic review of the daily sales reports? If so by whom and what do they look for or follow up on?
l. Are board actions obtained to approve write-offs of customer accounts which are deemed uncollectable?
m. Are there any processing errors in the sales cycle? If so, how are they resolved?
5. Purchasing / Receiving
a. Who purchases material for your company (stock, non-stock and special order)?
b. Who is responsible for maintaining the open PO’s (please include how they are filed)? Does this person also perform a review of open PO’s and follow up on them as necessary?
c. Who is responsible for physically receiving material within the warehouse and comparing the quantities received to the packing slip to the quantities ordered on the PO? Does this person also initial the vendor packing slip or complete the “receiving PO” by entering the quantities in the boxes and initialing as directed at the bottom?
d. Who keys in the receiving into WISE once the material arrives and appropriate comparisons of order vs. receipt?
e. Who processes the VIR once the invoice comes in?
f. During the VIR process are the PO, packing slip, and invoice matched?
g. Is the receiving document number entered before the VIR process begins?
h. Once the VIR is complete, how is the paperwork filed?
i. Does the local company president review the paid invoice register at month end (whether in mainframe or within Winzone)? What happens with any unusual or suspicious looking payments?
j. How often does the local company president review P-Card activity? What happens with any unusual or suspicious looking payments?
k. Are non-inventory or non-routine purchases approved at the appropriate levels? (Win companies: WGS President $1,000-$2,000, WGS President and Area Leader $2,000-$5,000, and Board Action if >$5,000) (Noland Companies: WGS President $1,000-$2,000, Local Company Board Action $2,000-$15,000, Noland Company Board of Directors >$15,000)
l. Are there any processing errors in the purchasing cycle? If so, how are they resolved?
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6. WISE Accounts
What generic accounts have been set up in WISE, along with employee accounts? List any account that is not specific to a particular customer (i.e. 300 Cash Sale Account…).
7. Bill and Hold Material
a. Do you have any accounts with Bill and Hold material (material that has been billed to the customer but is still being stored by the company)? If so, are you in compliance with A-520 (Bill and Hold Revenue Recognition)?
b. List ALL accounts with Bill and Hold material. Indicate if an agreement has been signed by the customer.
c. Has all Bill and Hold material been segregated from inventory and tagged as customer property or with a copy of the sales order? *If applicable, please have copies of the sales orders and the agreements available for review by the auditor.
d. *If applicable, please have copies of the sales orders and the agreements available for review by the auditor.
8.Consigned Stock
a. Do you have any accounts with Consigned Stock material (material that has been provided to the customer but has not been billed to the customer)?
c. If applicable, is the Consigned Stock material in “hold” status or is the material still included in your on hand quantities?
d. *If applicable, please have copies of the sales orders and the agreements available for review by the auditor.
9. WCMS
a. What level of service do your receive from WCMS (Credit)?
Level 1 (as needed)
Level 3 (full service)
b. Who is your primary contact at WCMS?
c. If level 3, are there any concerns that Internal Audit needs to be aware of?
10. Exceeding Credit Limit Accounts
a. Within Wise, if you go to 9 (Accounts Receivable) and then 20 (Inquiry-Credit Limits); complete a print screen of this page, then proceed to “b”. (Screen Print may be requested during the audit)
b. How are you working to reduce these amounts (WCMS, in house)? If working with customer, provide documentation of follow-ups.
c. Are you in compliance with Credit Policies & Procedures, mainly R-410 (Credit Management)?
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11. Payroll
a. List all employees, their job titles and status (if they are salaried, hourly, or contract/temporary labor). Then, just for outside salespersons, please estimate the amount of time the employee spends inside the office using approximate %’s. Additionally, please indicate (yes/no) if the employee uses a forklift at any time or drives for company business whether personal or company owned.
b. Does the local company president review and approve hours worked prior to transmitting information to the payroll department?
c. Does the local company president approve pay rates and initiate pay rate changes on the Winzone?
d. Are all Department of Labor regulations complied with? If not, what violations have been identified?
e. Are there any processing errors in the payroll cycle? If so, how are they resolved?
f. Please have copies of the time card data from WISE prepared for all hourly employees from the past three complete pay periods (6 weeks) for the audit.
12. Scrap Material
a. How do you dispose of scrap material?
b. Is scrap left by customers handled differently than damaged inventory items?
c. What happens to the proceeds from scrapped materials?
13. Company Vehicles
a. List all company vehicles VIN #’s, Make/Model, License plate number, and Drivers Alert Decal number.
b. Are Drivers Alert Decals requested for all new vehicles or to replace worn or damaged decals on existing vehicles?
14. Win Group Compliance Hotline
a. Are employees aware of the toll-free number that can be called to report unethical, illegal and irresponsible acts?
b. Is the Corporate provided poster informing employees of the toll-free number displayed?
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15. Potential Conflicts of Interest
a. Are any employees associated with any of your vendors outside of the typically business relationship?
b. Are any employees associated with any or your customers outside of the typical business relationship?
c. Are any employees associated with any of your service providers outside of the typical business relationship?
d. If you lease your facility, are any employees associated with your landlord outside of the typical business relationship?
e. Are there any other potential conflicts of interest that you are aware of?
16. Access to Customers property
Have any customers provided keys or codes to you or any of your employees to allow unsupervised access to their buildings or facilities? If so, please indicate the customer and describe the type of access provided (do NOT list specific alarm/lock codes that may have been provided).
17. Is there anything that you would like to make Internal Audit aware of?
a. Areas of concern?
b. Past problems that may still exist?
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