ABSOLUTE HEALTH, a hospital network offering end-to-end healthcare services, has pioneered the quality revolution in the field of healthcare delivery in the country, making quality healthcare affordable and accessible to

CS Professional · Internal and Forensic Audit · PYQS · June 2024
ABSOLUTE HEALTH, a hospital network offering end-to-end healthcare services, has pioneered the quality revolution in the field of healthcare delivery in the country, making quality healthcare affordable and accessible to everyone. Today, ABSOLUTE HEALTH stands among the top 10 hospitals in India with top-notch healthcare delivery systems, evidence-based medicine, high-end facilities and quality-oriented practices. Beyond healthcare delivery, ABSOLUTE HEALTH also has a clear-cut focus on academics with 23 different academic programs under its academic wing. ABSOLUTE HEALTH touches upon all aspects of wellness and healthcare, with a fine fusion of cardinal principles of holistic care and hospitality with the three-pronged approach of courtesy, compassion, and competence. As a part of good corporate governance, management has implemented strong internal controls over cash disbursements (pertaining to lower-level staff salaries, purchases up to ₹10000, propriety aspect while doing purchases, proper recording and classification of payments etc.) Analysis of SAP generated report for the last month indicates the following: Instances of payment of personal credit card bills of two employees working in accounts department. Charging personal expenses on company card bills. Matter was taken up by the internal audit department of the company and one of the team members have been asked to prepare checklist for identifying the control system working and its weakness in disbursement area before starting the actual audit. You are required to assist the audit team member in preparing cash disbursement checklist or questionnaire for the said area.

Answer & Explanation:

CASH DISBURSEMENTS YES NO NOT SURE N/A 1. Are the following duties performed by separate individuals? Preparing vouchers/checks Approving vouchers/authorizing disbursements Reconciling disbursement Maintaining custody of cash 2. Are disbursements made only from authorized expenditure accounts, trust funds, revolving funds or bank accounts and, except for petty cash payments, paid only through online vouchers, pre- numbered warrants/ checks, and/ or journal entries? 3. Are controls in place to ensure that all disbursements are reasonable, necessary and made in accordance with state and federal regulations and County polices (as defined in the MAPP, MOUs, County Administrative Code, letter orders, OMB Circular A-87, etc.)? 4. Are cash advances prohibited except as authorized under special circumstances by the Board of Supervisors? 5. Are all disbursements supported by properly approved, original vendor invoices, employee claims, and/or contractor invoices and, if appropriate, contracts, purchase orders and receiving reports? 6. Are controls in place to ensure that only authorized personnel approve vouchers and sign warrants/checks? 7. Do voucher approvers or check/warrant signers review the supporting documentation before approving the voucher or signing the check? 8. Is periodically surprise physical cash verification conduct or not? 9. Are adequate controls maintained over unused, returned and voided checks/warrants and signature stamps, plates and files? 10. Are all disbursements properly recorded, classified and summarized in a cash disbursements journal?

Topics: Internal Audit

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