Internal Control System Questionnaire

Introduction:
An internal control system refers to the process by which organizations maintain environments that encourage incorruptibility and deter fraudulent activities by managements and employees. Internal control systems are evaluated during the planning phase of an independent financial statement audit. This is the system is also known as detection and prevention of fraud in an organization.
The
“Questionnaire Method” is one of various techniques to measure internal control system of any organization, institutes or business firms.

What is Internal Control System?
Internal control system integrated framework and it broadly defined as a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations reporting and compliance.
Internal control system as defined in an “Accounting” and “Auditing” is a process for assuring achievement of an organization’s objectives in operational effectiveness efficiency reliable financial reporting and compliance with law regulations and policies. A broad concept internal control involves everything that controls risk to an organization.

Evaluation of Internal Control System
There are basically four important techniques to evaluation of internal control those are

Narrative Method
Questionnarie
Method
Flow Charting
Method
Narrative Method

The Questionnaire Method
A questionnaire lists a series of question about specific internal control structure component. An internal control questionnaire is a document which an auditor provides to employees of a company before performing an audit. The questionnaire is useful to determine which areas the audit should focus on. When employees answer the questions, the auditor knows whether the company is keeping accurate records overall, and has evidence that shows that who is responsible for which documents. The company receives the benefits of having a cheaper, faster