Checklist for Assessing Accounting System
Agenda for first day’s work – Testing the effectiveness of the existing bookkeeping system should be the first step. The result will probably be a "to do" list for future work. To be of service to management, financial records must be accurate and reports must be reliable. Consider the following:
- o .. Determine status of financial/management information.
- o .. Discuss divisions of management accountability.
- o .. Determine the condition of cash management records.
- o .. Determine the condition of accounts receivable records.
- o .. Determine the condition of accounts payable records.
- o .. Determine the condition of inventory records.
- o .. Determine the status of unbilled work.
- o .. Discuss procedures for assuring that sold work is performed and billed.
- o .. Discuss procedures for assuring that disbursements are for authorized goods and services, and that they have been received or provided.
- o .. Discuss procedures for assuring job profit.
- o .. Identify all transaction journal sources.