You are in the process of evaluating the internal controls of a company by focusing on controls operating for creditors from whom various goods are being purchased by the company. In this respect, you want to collect inf

You are contemplating using internal control questionnaire as method for evaluating internal controls. The internal auditor considering the size and nature of its business and based on the discussions with the management designs a set of questions, which when answered will document a number of aspects of the internal control system. This questionnaire is popularly known as internal control questionnaire (ICQ) and can be very useful in documenting and assisting the evaluation of controls. A set of questions regarding controls operating for creditors are given below: Is there a proper segregation of duties among employees receiving the goods, preparing vouchers, approving vouchers and authorizing the payment? Are purchase order issued by accounts department on the requisition of goods from the various department? Are suppliers' invoices routed direct to the Accounts Department? Are they entered in a Bill register before submitting them to other departments for check and/or approval? Are advance and partial payments entered on the invoices before they are submitted to other departments? Does the system ensure that all suppliers invoices received in original are duly processed only after proper approvals? In respect of raw material and supplies, are reconciliations made of quantities and/or values received as shown by purchase invoices with receipt into stock records? Does the Accounts Department match the invoices of supplies with Goods Received Notes and purchase orders? Do all invoices bear evidence of being checked for prices, freight, terms, etc.? Are all advance payments duly authorized by persons competent to authorize such payments and old advances are reviewed and action taken regularly either to get back the advance or get the materials supplied? Are duplicate invoices marked immediately on receipt to avoid payment against them? Are all supplier's statements compared with ledger accounts? Is there any follow-up action to investigate difference, if any, between the suppliers' statements and the ledger accounts? Is a list of unpaid creditors prepared and reconciled periodically and reasons obtained for non-payment which are outstanding to be paid for a long time? Are all statutory requirements in the form of TDS and GST has been complied with? Are retention money has been deducted as per the terms of purchase order?