Payroll – check payment report/s to ensure no additional employees or collusion between staff members.
Payroll- check cheques paid are recorded in payroll system correctly.
Payroll - ensure PAYE reconciles.
Ensure all third party payments for packaged employees are currently recorded for FBT liability where applicable.
Ensure no terminated employees are on current payroll.
Financial Management Systems – Accounts Payable
Accounts Payable – ensure authorization procedure is being followed. Analyse that preferred suppliers are commercial, ensure all goods and services paid have been received.
Accounts Payable - Ensure no cash cheques have been paid- except for petty cash
Accounts Payable - Test data to ensuring expense classifications are correct.
Financial Management Systems – Accounts Receivable
Accounts Receivable – ensure invoices are being raised correctly, sight source data (payroll report).
Accounts Receivable –ensure all payments are being processed correctly and banked promptly – ensure no delays to cash flow.
Accounts Receivable – examine unpaid accounts and action taken – give advice and assist where necessary. Attempt to identify any clients who show signs of becoming slow payers (eg. Timing between payments becoming greater or unwilling to be bound to terms of payment). Potential bad debt cases should be identified as soon as possible to minimize the amounts that could be lost (Consult immediately with executive management).
Review all accounts outstanding greater than 30 days and ensure action is being taken.
Balance Sheet Items
Review the bank reconciliation – including sighting a copy of the bank statement
Petty Cash reconciliation – ensuring the amounts reimbursed balance with the nominal balance to be held..
The debtors accounts – including any amounts not contained in aged debtors report. This will also include analysis of amounts outstanding greater than 30 days with reports on action taken.
Examine Fixed asset reconciliation to ensure all items of capital are included, ensure there are no obsolete items being depreciated (eg. Obsolete computer hardware/ upgraded software applications)
Ensure pre-paid expenses relate to future periods – sight documentation to ensure that should not be expended.
Ensure income which is due but has not been invoiced or received, is raised as accrued income–sight supporting documentation that this amount will be definitely paid. Sight a reconciliation that all training subsidies as received for trainees/apprentices. Ensure all accrued interest on term deposits or interest on loans is reflected in the accounting records.
Ensure pre-paid income is Prepaid i.e. Sight supporting documentation
Review the creditors report to ensure all expenses are current and credit notes have been processed where applicable.
Ensure all expenses are included as accrued expenses if the amounts have not been included in the accounts payable ledger. Examine accrued expenses to ensure liability had arisen at balance date (ie. Sight documentation).
Ensure all contingent liabilities are raised including Year 2000 compliance requirements.
Examine payroll reports to substantiate wages/deductions/superannuation and taxation balances.
Examine Leave liability reports to ensure provisions are correct and current for period including long service leave which is accrued after 5 years service.
Ensure all balance sheet general ledger accounts are reconciled.
Financial Management Systems – Fixed Assets
Ensure all asset registers are up to date by comparing the written down values with the general ledger.
Identify assets with a code and label. This reference should be recorded on fixed asset register and physical asset to allow for clear identification.
Ensure taxation and statutory compliance is being met.
This includes minute book and registers recorded.
Taxes for consideration include income taxation, payroll tax, stamp duty.
Assets (Contents & Building if applicable at replacement cost)