Control Environment Self-Evaluation Questionnaire

Have you considered necessary control activities for each of your operations? For example:

1. Do you and your employees evaluate performance with regard to established objectives? Are these evaluations based on previously agreed upon standards?
2. Are all new programs or activities formally authorized in advance?
3. Are you currently operating within budget? Did you complete last year within budget?
4. Are important financial and operating reports routinely reviewed and shared with your key personnel?
5. Are key reconciliations prepared and reviewed?
6. Do you or your key managers review and approve all financial transactions?
7. Do you track the location and use of all equipment? Is missing equipment investigated? Are there additional controls for equipment checked out to individuals or taken off campus?
8. Do you provide adequate physical security for cash and other assets subject to theft?
9. Do you provide adequate guidance and training for personnel who have responsibility for cash and similar assets?
10. Are individuals who control assets prohibited from also recording transactions related to those assets? For example, is the cashier not allowed to handle record keeping for accounts receivable?

Please list the primary control activities you rely upon in managing your organization.

Information and Communication

1. Do you receive relevant information regarding legislation, regulatory developments, economic changes, or similar external factors that may affect your organization?
2. Is key information about your organization’s operations identified and regularly reported?
   1. Do managers receive sufficient information to carry out their responsibilities?
   2. Is the information understandable and usable?
   3. Is information available in a timely manner?
   1. Is there follow-up communications with the complainant?
   2. Is management aware of the nature and volume of complaints?

   Monitoring

   1. Do you routinely evaluate the overall effectiveness of your internal control system?
   2. How do you monitor the control environment?
      1. Do you assess employee attitudes?
      2. Do you review your organization structure for effectiveness?
      3. Do you review and evaluate policies and procedures?
      1. Do you spot-check transactions, records, and reconciliations to ensure they meet your expectations?
      2. Do you randomly compare assets on hand (cash, inventories, etc.) to recorded amounts and investigate discrepancies?
      1. Do you question financial and management reports that appear unusual or inconsistent?
      2. Does management encourage employees to provide feedback on whether controls operate effectively?
      3. Are there performance evaluations, at least annually, where employees and supervisors discuss expectations, goals and performance?