18 methods for internal control of income and expenses;
Sales and revenue control:
1 ⃣ Only goods are exported from the warehouse or services are performed for which a license to issue, remittance of warehouse / work has been issued.
2 ⃣ documents related to the delivery of goods or services from customers in an appropriate manner
3. The documents related to sending or delivering the goods are used to record in the warehouse records.
4. The invoices are adjusted with the printed order number and based on the contents of the documents related to sending goods or providing services.
5⃣ Before presenting the invoices to the customer, the following controls are carried out by persons independent of the invoice adjusters:
Controlling the prices listed in the invoice with the concluded contract or the approved price list
Control of invoice calculations
Control other conditions such as discounts and payment methods
6. Cash, checks and receivable documents are matched with the relevant documents upon receipt and the relevant receipt with a printed sequence number is issued in a proper manner.
7. All funds of receivable checks are deposited to the company’s bank account at the beginning of the day or handed over to the bank for collection, and all documents with a term are delivered to the relevant official and the corresponding receipt is received.
8⃣ During regular periods, for example, every 15 days, bank statements related to all bank accounts are obtained and by independent persons from the persons responsible for receiving and paying and the persons responsible for registering the book with the items listed in the company’s books, and the nature and reasons of all said items, non-conforming items determined and the results are reviewed and approved by one of the responsible officials of the company.
Control of purchases and expenses:
1 ⃣ No purchase or receipt of services is done without licenses to purchase or receive services.
2. During the delivery of goods or services, sufficient and appropriate documents are prepared to document the specifications, quantities or quality of the goods.
3. There are appropriate controls to ensure that all documents will be considered.
4⃣ There are appropriate controls to ensure that invoices are received against all documents related to goods or services.
5. The quantities, specifications and quality of goods/services received in the invoices are matched with the documents related to the receipt of the goods.
6⃣ Issuance of checks is done only against payment order sheets with printed numbers that are issued on the basis of documents and documents related to the company’s transactions and approved by a responsible authority.
7⃣ At the same time as the check is issued, the attached documents and documents will be properly canceled to prevent reuse.
8. Checks and bank transfers are issued by persons independent of the payment authorization issuer.
9⃣ At the time of delivery of the check to the beneficiary, a valid receipt is received and the undelivered checks are properly stored.
Before the payment of the statement of expenses, a person independent of the producer will check and approve the claims and documents of the attached documents, and they will be properly invalidated to prevent reuse.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://telegram.me/joinchat/BnzBsTuioTuSPky30-nUbg