Eta, CPA, has been engaged to audit the financial statements of Hellenic Books,

Question

Eta, CPA, has been engaged to audit the financial statements of Hellenic Books, Inc. Hellenic Books maintains a large revolving cash fund exclusively for the purpose of buying used books from students for cash. The cash fund is active all year because the nearby universities offer a large variety of courses with varying starting and completion dates throughout the year. Receipts are prepared for each purchase, and reimbursement vouchers are periodically submitted. REQUIRED: Construct an internal control questionnaire to be used in the evaluation of the internal control of Hellenic Books' buying segment's revolving cash fund. The internal control questionnaire should elicit a YES or NO response. Do not discuss the internal controls over books that are purchased.

Explanation / Answer

Answer:

The questionnaire for Hellenic Books: The questionnaire is the process of capturing the voice of customer or voice of the business from the process owner or the subject expert based on the type of voices to be captured for the project analysis and investigations.

The questionnaires are mainly for capturing the feedback of inputs from the process owner or subject expert or customers or owners who can provide the required information for the project.

Questionnaires are defined as the set of questions to be prepared for a project, which will be used during the survey process or interview process for capturing the required information from the target customers/consumer/stakeholder on a particular project. These questions will help to collect the voice of the customers for the improvement project.

We need to construct an internal control questionnaire which can be used in the evaluation of the internal control of Hellenic Books buying segments cash fund as below

·        Did the Hellenic books has the process of purchase demand for the upcoming session – Yes / No ?

·        Did the Hellenic books has the demand review process with stakeholders – Yes / No ?

·        Did the Hellenic books has sufficient controls over the purchase against the demand plan – Yes / No?

·        At Hellenic books, do they have the review control before purchase plan – Yes / No ?

·        At Hellenic books, do they have the review control after books purchased – Yes / No ?

·        Did the Hellenic books, maintains the sufficient fund for the books purchase – Yes / No ?

·        Did the Hellenic books, reviews the fund consumption vs plan of consumption at periodic intervals – Yes / No ?

·        At Hellenic books, did the book purchase fund is reviewed and approved by the business owner – yes / No ?

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