Back-office checklist

A checklist of things to look out for when conducting an internal audit of an office that handles cash:

  • Perform a count and reconciliation of all the funds in the accounting office.

  • Observe if the cash office door is double bolted and was the alarm set (if vacant)?

  • Were you asked to sign in? Review the list of persons signing in.

  • Review a random sample of charge card transactions for the previous business day and verify that each one was processed in accordance with existing policies and procedures (swiped through card reader or manually entered).

  • Review the till audits for the prior five days. Record the dates and till numbers. (Were they random and frequent?)

  • Make note of any non-company funds located in cash office or safe.

  • Document any petty cash vouchers/slips, which lack proper completion. (I.e. attached receipts and receipt/approval signatures.)

  • Are the cash office personnel are using the coin/currency counters?

  • Observe the preparation of the cash deposit. Verify that bank deposits are made in accordance with related procedure.

  • Reconcile deposit slips with corresponding documentation.

  • Review a random sample of cheques accepted during the previous business day to verify that each one was processed in accordance with existing policies and procedures.

  • Obtain the cash refund and credit vouchers for ten random days and verify that they were completed in accordance with company policy and procedures.

  • Verify that the total on cash pickup sheet agrees to store settlement sheet.

  • Obtain the daily overs/short reports for the previous 7-10 days and verify that all cashier variances are recorded by cashier, register, amount, and date in O/S book. (Confirm with the cashier.)

  • Review the authorized person’s list for the cash office. Is it current and visible?

  • Discuss changes to list of employees relating to POS system, door keypad, and/or outside door hand scanner. Note timeliness, missing employees, or bogus numbers?