Internal Control Questionnaire

This is a comprehensive series of questions concerning internal control. This is the most widely used form for collecting information about the existence, operation and efficiency of internal control in an organisation. An important advantage of the questionnaire approach is that oversight or ommission of significant internal control review procedures is less likely to occur with this method. With a proper questionnaire, all internal control evaluation can be completed at one time or in sections. The review can more easily be made on an interim basis. The questionnaire form also provides an orderly means of disclosing control defects. It is the general practice to review the internal control system annually and record the review in detail. In the questionnaire, generally questions are so framed that a ‘Yes’ answer denotes satisfactory position and a ‘No’ answer suggests weakness. provision is made for an explanation or further details of ‘No’ answers. In respect of questions not relevant to the business, ‘Not Applicable’ reply is given. The questionnaire is usually issued to the client and the client is requested to get it filled the concerned executives and employees. If on a perusal of the answers, inconsistencies or apparent incongruities are noticed, the matter is further discussed auditor’s staff with the client’s employees for a clear picture. The concerned auditor then prepares a report of deficiencies and recommendations for improvement.

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