General
· Procedures and policies should be established for general accounting and month end reporting.
Monthly Reports
· Month-end reporting requirements and their due dates should be clearly communicated.
· Monthly management accounts and reports should be reviewed by senior management.
· Foreign currency transactions and balances should be translated at approved rates.
· Suspense items should be investigated and reviewed by senior management.
· Journal vouchers should be supported and approved prior to processing.
Chart of Accounts
· Creation of new accounts and changes to existing accounts should be authorised by the Financial Manager, and all Functional Managers and Divisional Directors informed immediately.
· Dormant accounts should be reviewed and deleted/deactivated annually.
Reconciliation
· Reconciliations should be prepared for all key control accounts including Stock Ledger, Payroll, Fixed Assets and Cash Book.
· Inter-company balances should be confirmed and reconciled on a monthly basis. All reconciling items should be checked and cleared.
Segregation of Duties
· There should be segregation of duties between the following functions:
– Cash handling
– Maintenance of GL data
Delegation of Authority (DOA)
The documented DOA should cover the authority to:
– Create and edit of GL
– Sign cheques and payment instructions