When was the last time you gave your business an internal checkup? For any business, having internal accounting controls in place are vital and should be a part of everyday procedures. They should help prevent fraud and employee theft or detect it early.

Here’s a checklist of what you should look at when reviewing your internal control procedures. Please note, this is not an all-inclusive list and it isn’t a substitute for completing a thorough internal control analysis.


  • Are cash handling and cash record keeping duties segregated?
  • Are all expenditures authorized and documented?
  • Do you conduct unannounced checks of petty cash and other cash accounts?
  • Do you prohibit any single employee from handling a transaction from start to finish?
  • Do you deposit all receipts intact to the bank daily?
  • Do you prepare bank reconciliations?


  • Do you have proper segregation of duties to prevent an employee from pocketing cash from a sale without reporting the sale?
  • If you don’t have enough employees for adequate segregation of duties, do you have an active role in monitoring the sales activities?

Accounts Receivable

  • Are different employees responsible for different duties associated with accounts receivable?
  • Do you account for and physically control returned merchandise?
  • Do you bill customers promptly?
  • Is an accounts receivable aging schedule prepared regularly?
  • Do customers receive monthly statements?


  • Are inventories physically counted at least annually?
  • Is central control over inventories maintained?
  • Are perpetual inventory records maintained?
  • Is inventory adequately insured?
  • Do you maintain safeguards against theft and pilferage?

Fixed Assets

  • Are fixed assets acquired only with proper authorization?
  • Do you take regular inventory of fixed assets?
  • Are discrepancies between physical counts and accounting records resolved?
  • Are fixed assets adequately insured?
  • Are small tools and supplies properly safeguarded?


  • Is there proper authorization for the creation of any debt?
  • Are liabilities promptly recorded?
  • Are accounts payable checked for accuracy?
  • Are bills paid only when the merchandise has actually been received?
  • Do you take advantage of vendor discounts?


  • Are designated officers the only ones allowed to sign stock certificates?
  • Are stock certificates prenumbered and carefully accounted for?

Have questions or need guidance? Contact us today!