The following are statements for internal controls that were answered \"no\" by

Question

The following are statements for internal controls that were answered "no" by a controller.

1. Based on the "no" reposne to each statement, what weight would you give each of the responses ( Use a scale of 1 – 5 with “1” being “not serious” and “5” being “very serious.”)?

2. Which Internal Contorl is violated: Performance review, Information Processing, Physical Control or Segregation of Duties?

3. Based on the Total all of the weights, evaluate the complete questionnaire responses and rate the total internal control risk for cash as “low”, “moderate,” or “high.”

Question

Response

Which IC control is violated

Weight Given

Are disputed liabilities handled by person(s) other than those receiving payment and record keeping functions?

Segregation of Duties

Low

Are controls maintained that provide assurances that customer database and, where appropriate, usage records are accurately maintained to ensure that amounts due are billed?

Medium

Is there adequate control over the mailing of statements to prevent interception prior to mailing?

Medium

Are statements of account balance mailed on a timely basis, where appropriate?

Medium

Question

Response

Which IC control is violated

Weight Given

Are disputed liabilities handled by person(s) other than those receiving payment and record keeping functions?

Segregation of Duties

Low

Are controls maintained that provide assurances that customer database and, where appropriate, usage records are accurately maintained to ensure that amounts due are billed?

Medium

Is there adequate control over the mailing of statements to prevent interception prior to mailing?

Medium

Are statements of account balance mailed on a timely basis, where appropriate?

Medium

Explanation / Answer

Question Response Which IC control is violated Weight Given Are disputed liabilities handled by person(s) other than those receiving payment and record keeping functions? 2 Segregation of Duties Low Are controls maintained that provide assurances that customer database and, where appropriate, usage records are accurately maintained to ensure that amounts due are billed? 4 Information Processing Medium Is there adequate control over the mailing of statements to prevent interception prior to mailing? 3 Information Processing Medium Are statements of account balance mailed on a timely basis, where appropriate? 2 Information Processing Low

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