Financial Audit Checklist

Accounting Requirements

• Are proper books and records kept of all transactions?
• Do the accounts comply with requirements for external scrutiny?
• Are accounts formally approved at an annual meeting?

Organizational Structure

• Is a plan held showing organizational structure?
• Are lines of authority and reporting laid down in writing and communicated to all staff?
• Are all staff and volunteers given proper training?
• Is professional advice taken where appropriate?

Budgets

• Are annual budgets prepared and approved to cover both income and expenditure?
• Is performance measured against budgets at regular intervals?

Banking and Custody Procedures

• Are incoming receipts banked promptly and regularly?
• Is the safe custody ensured for all valuables held on premises?
• Are keys of safe or cash box signed for?
• Is insurance held to cover contents of safe or cash box?
• Is all incoming money banked and no amounts held over for petty cash feeding/replenishment?
• Is a written statement of banking and custody procedures available to all staff and volunteers?
• Is money belonging held separately from that of any individual staff member?
• Are there controls over receipt books?

Checks of Income Records

• Are regular checks made to ensure records are accurate?
• Are regular checks made to ensure no discrepancies between records?
• Are checks made by someone other than the original recording officer?
• Are any restrictions placed on donated income identified and observed?
• Controls over expenditure
• Are all expenditures properly authorized?
• Is there supporting documentation required and maintained for all expenditures?
• Are check books kept in secure place with access only by nominated persons?
• Is the preparation of payments undertaken by someone other than the authorizing officer?
• Is a written statement of policy and practice on payment procedures available to all staff and volunteers?

Controls over purchases

• Are invoices checked against orders made?
• Is the quality and quantity of goods supplied checked against orders made?
• Is inventory of stock taken regularly?
• Are authority levels for placing orders documented?
• Are payments only made against original invoices?

Staff and Salaries

• Are Personnel records kept and held separately from wage records?
• Are wage/salary levels properly authorized and recorded?
• Are checks made to verify existence of employees?
• Are cash payments avoided wherever possible?
• Are staff employed in compliance with state/federal regulations?
• Are background checks completed, particularly for staff assigned financial duties?

Bank accounts

• Are secure records held of all accounts?
• Are regular bank reconciliations carried out?
• Are instructions to open or close accounts properly authorized and/or reported?
• Are checks made to ensure that there are no dormant accounts?
• Are bank statements regularly inspected by officers not assigned bookkeeping duties?
• Are cross checks made between bank records and the income and expenditure records?