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Comprehensive checklist for evaluating internal controls

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Prepare a comprehensive checklist for evaluating internal controls for a company (real or fictitious). Apply the checklist to outline phases of the control evaluation "Comprehensive" means a complete checklist. You must include company-level controls, significant processes, major classes of transactions, and significant accounts for a particular company. Your company should have more than one major class of transactions. (Examples: revenue & collection, accounts payable, production, payroll)

Use the checklist to outline phases of the internal control evaluation. You may use the (1) components of internal control, or (2) relevant assertions as headers within your checklist.

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This solution discusses a Comprehensive checklist for evaluating internal controls. We thoroughly discuss each part of the checklist for internal control.

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Here is how I would handle a checklist for internal controls for a company. The best company to use would be a manufacturing company because there are so many main accounts and processes that are involved, like inventory, A/P. payroll, A/R, etc.

Company-level controls:
1. Is the internal structure of the company set up in a way where management override would be accomplished with minimal effort?
2. Does management conduct thorough risk assessments at periodic intervals, and are the risk assessments documented and used for application in the internal control environment?
3. Is there a code of conduct, and has it been received by every manager and employee?
4. Does the IT system limit access to programs, data, and other applications on an as-needed basis?
5. Do all employees have a copy of the policies and procedures manuals, and have all employees indicated that they understand the information and directives in these manuals?
6. Has the tone-setting at the top (also called tone at ...

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