Company Name: ______________________________________________________________

Part I – Demographic Profile

Gender:  Male  Female

Educational Attainment:  Elementary  Junior High School

 Senior High School  Tertiary

Previous Work Experience:  Yes  No

Origin of SME:  Established  Inherited

 Other: ____________________________

Source of Capital:  Personal Savings  Joint Venture with colleagues

 Family Investment  Third Party Investment
 Bank  Other: _____________________

Months/Years of Existence: _________________

Part II – Please place a check mark () on the box below that corresponds your ratings of the
factors indicated below.

5 - Strongly Agree 4 – Agree 3 – Undecided 2 – Disagree 1 – Strongly Disagree

A. CASH
5 – SA 4–A 3–U 2–D 1 – SD
1. The idle cash is invested in highly liquid, short-term
investments instead of holding idle precautionary
cash balances.
2. The cash is counted and verified when cashiers
receive their drawers.
3. There is adequate provision made for obsolete and
inactive items in inventories.
4. There is only one cashier able to access each cash
drawer at any given time so that cash will at all
times be in the possession and control of only one
person.
5. The cash drawers are assigned to one person and
not shared across shifts / employees.
6. There are duplicate copies of receipts retained.
7. The receipts are issued in sequence.
8. The voided pre-numbered documents are kept in the
bound receipt book.
9. All of the funds received are deposited with no
funds being held back for change, petty cash, etc.
10. The deposit slips are prepared in at least duplicate
form.
11. There are background checks and fingerprinting
performed on all new employees who handle cash.
12. The policies and procedures with regards to cash
support the internal control.
13. The cash funds are periodically counted on a
surprise basis by an independent employee.
14. The management investigates all substantial
variations from norms such as cash register voids,
no sales, refunds, errors, revenue levels, etc.
15. Someone independent of the cash receipts processes
reconcile payment receipts to deposit slips on a
daily basis.
16. Someone independent of the cash receipts processes
reconcile payment receipts to receipt records
(receipts, mail log, cash register) on a daily basis.
17. There are adequate physical facilities such as a safe
or locking drawer provided for safeguarding cash.
18. The receipt books are safeguarded when
unattended.
19. There are safe combinations and keys to lockboxes
restricted to a minimum number of employees.

B. ACCOUNTS RECEIVABLE
5 – SA 4 – A 3–U 2–D 1 – SD
1. The credit terms are shortened.
2. There are cash discounts offered to customers for
prompt payment.
3. The mailing time of payments is sped up from
customers to the firm.
4. The float, which is the time during which payments
received by the firm remain uncollected funds, is
minimized.
5. There are consideration of character, capacity,
capital and conditions of the debtor in establishing
credit standards .
6. There is an established local collection office.
7. The policies and procedures of accounts receivable
support internal control.
8. The responsibilities for maintaining detailed
accounts receivable records are segregated from
collections, disbursement, and general ledger
posting functions.
9. The controls in the system exist that provide
assurances that individual receivable records are
posted only from authorized source documents.
10. The controls maintained that provide assurances
that customer database and, where appropriate,
usage records are accurately maintained to ensure
that amounts due are billed.
11. The billings are controlled and properly accounted
for.
12. The aggregate collections on accounts receivable
are reconciled against postings to individual
receivable accounts.
13. The letters of credit are reviewed for accuracy.
14. The aged accounts receivable balances are
periodically reviewed by supervisory personnel.
15. The adequate procedures exist for follow-up and
collection of delinquent accounts.
16. There are controls to insure that individuals with
delinquent accounts are precluded from receiving
additional credit.
17. The delinquent accounts are reviewed and
considered for charge-off on a timely basis.
18. The write-offs or other reductions of receivables,
including noncash credits, credit memos, and
allowances, are formally approved by senior
officials not involved in the collection and
recording function.
19. There are procedures that ensure that interest and
penalties are properly charged on delinquent
accounts.
20. The redit balances periodically reviewed.

C. INVENTORY
5 – SA 4–A 3–U 2–D 1 – SD
1. The receiving, issuing, accounting and storing
responsibilities are properly segregated.
2. The management has taken the appropriate steps to
safeguard goods against risk of loss by theft (e.g.,
goods kept in locked buildings, rooms, or cages,
access to which is granted only to authorized
personnel).
3. The inventory records are reconciled (and
differences explained) to Advantage reports on a
regular basis. (Current inventory is adjusted at year-
end by fiscal year-end physical counts.)
4. The departments compare quantities received
against receiving reports, etc.
5. The material is released from storerooms only on
the basis of requisitions which are approved by a
 responsible official of the department.
6. The adequate provision is made for obsolete and
inactive items in inventories.
7. The management monitors and approve the write-
offs of obsolete and inactive inventories.
8. All classes of inventory items are physically
counted annually (triennially if there are perpetual
records).
9. The procedures for physical counts provide for:
a. Adequate written instructions
b. Adequate supervision
c. Clearly marking damaged and obsolete inventory
d. Use of pre-numbered tags which are accounted
for
e. The counting of the items and access to the tags
only by employees who are not responsible for
custody of the particular items
f. The rechecking of counts and descriptions (dual
counts) where perpetual records are not maintained
and where variations from the perpetual records are
significant
g. Careful investigation of significant overages and
shortages
h. Prompt adjustment of records for inventory
discrepancies after approval by a responsible
official other than stores personnel
i. Recording counts on permanent inventory count
sheets
j. The signing and dating of inventory count sheets
by the person supervising the count
k. Properly accounting for goods that are consigned
in and out
10. There are adequate provisions made for cut-off of
receipts and issues.
11. The adequate insurance coverage is provided.

D. ACCOUNTS PAYABLE
5 – SA 4 – A 3–U 2–D 1 – SD
1. There are safe combinations and keys to lockboxes
restricted to a minimum number of employees.
2. A procurement policy exists. It includes policies
and procedures for acquiring capital items, routine
and non-operating purchases, contracts, employee
business travel expenses both local and out of town
and petty cash uses.
3. There is a schedule of payment approval authorities.
It is adequate to ensure proper approval for
procurement payment and timely payment
processing.
4. The invoices match with receiving reports and
purchase orders.
5. The accounts payable department is a corporate
function or do other subsidiaries process accounts
payable transactions.
6. The check stock is inventoried upon receipt
periodically.
7. The invoices are entered into the accounts payable
system upon receipt.
8. The copies of invoices are stamped to indicate
duplicate items.