Initial File Review Checklist

Review
File Maintenance
Questions and Details
Software
Review Software, Licensing, Billing and Product Support
Product/Version:_________________________________________
Serial # ________________________________________________
Registered Owner of Product_______________________________
Owner of Subscription_____________________________________
Subscription Billing_______________________________________
Software Support_________________________________________
User Access
How many users have access? (Online/Remote/Internal)
_______________________________________________________
(Ensure owner has Full or Read Only Access for all areas of file)
Who has administrator/advisor access? (Password?)
Who has access to payroll?
Create specific user for Bookkeeper
Computers
Type of Network (Stand Alone, Peer to Peer, Server, Cloud)
Location of File:___________________________________
Backup Regime: Device and Frequency:
Weekly/Monthly/Quarterly/Annual
File Auditor
Run File Auditor for information (If applicable)
Check Location of File (local)______________________________
Check Company File Year/Locked Periods___________________
Check Last Date Backup file_____________________________
Linked Accounts
Check Accounts used for linked accounts for:
 Banks – Electronic Clearing and Undeposited Funds
 Sales - Customer Deposit, Receivables, Discount, Freight
 Purchases – Supplier Deposit, Payables, Discount, Freight
 Payroll - Wages, Superannuation, Cash and Electronic
Payment
Preferences
Check Preferences
 System – Links to other programs, Jobs/Categories assigned,
Payroll defaults
 Reporting – Ageing and Default Forms
 Sales – Default Layout options, Credit Limit, Default Terms
 Purchases – Default Layout Options, Default Terms
 Inventory – Yes or No
 Security - Audit Trail, Locked Periods
 GST Status – Cash or Accrual
 PAYGW Registration – Monthly/Quarterly
 TPAR – Yes or No
________________________________________________________________________________
YBB-Initial File Review Checklist (Nov 2015)
© The Institute of Certified Bookkeepers
Page 1
Recurring /
Memorised /
Rules Transactions
Check Recurring/Memorised/Bank Feed Rules Transactions
Review List Direct Debits, Bank Loans and Financed Loans
Review Frequency, Alerts and Transaction ID
General Journals
Check if General Journals are used
If yes Check the type of journals used
IF no suggest use for private % split monthly (if applicable)
Card Maintenance
Cards Review
Check for duplicate cards.
Review client’s use of Customer, Supplier and Employee
Card/Contact fields
Review Customer selling details (sale layout, income account, and
receipt memo, sales person, shipping method, credit limit and hold).
Review Supplier buying details (purchase layout, expense account,
purchase comment, shipping method)
Check Supplier payment details (random check against supplier
invoices)
Check for split bank accounts for both Suppliers and Employees
Terms
Review Customer terms used and ensure default is correct (Discuss
with client of their terms for customers)
Review Supplier terms used and ensure default is correct (Check
Terms with Supplier Statements)
Account Maintenance
Chart
CHECK comparison of Chart to Accountants Financials
CHECK Chart for obsolete accounts
CHECK Headings and Subtotals
Tax Codes Assigned
CHECK Tax Codes assigned to accounts
CHECK Tax Codes are linked to correct BAS Fields
Account Balances
CHECK Balances are same for last tax return lodged from
Accountant
CHECK Bank Feeds transactions are clear or assigned
CHECK Bank Accounts – Last Date Reconciled (Incl. Bank Loans)
CHECK Bank Accounts – Unreconciled Transactions
CHECK PayPal, EFTPOS, AMEX Accounts Values
CHECK Electronic Clearing Accounts – Zero Balance or valid amount
CHECK Trade Debtors = Receivables Summary Report
CHECK Trade Creditors = Payables Summary Report
CHECK Stock on Hand = Inventory Summary Report
CHECK Credit cards – last reconciled
Loans
CHECK Finance Loans e.g. Hire Purchase on Cars
REVIEW Finance documents and Check GST
CHECK Other Loans – Directors Loans with private expenses used
by owner and check NO GST used on personal expenses
________________________________________________________________________________
YBB-Initial File Review Checklist (Nov 2015)
© The Institute of Certified Bookkeepers
Page 2
Banking
Authority Online
Banking
CHECK who is authorised to transfer money/pay bills
CHECK who is authorised to pay employees
CHECK security process for Online Payments e.g. Token, SMS used
CHECK internet banking access and all users have separate login
Authority Signing
Cheques
CHECK process for Cheque Payments e.g. Two signatories required
CHECK records e.g. Cheque Butts filled in correctly
Cash
REVIEW process of End of Day Till Reconciliation
CHECK who has access to petty cash/till
CHECK who banks cash
CHECK bank deposit records
Sales
Receivables
CHECK Outstanding Debtors
 DISPLAY Receivables Summary report and review 60-90 days
outstanding invoices.
 REVIEW any old/bad debts, check whether write-offs required
 REVIEW Credits - should credits be applied to current sales or
cleared as they are incorrect?
Sales Orders /
Layby And Gift
Voucher Payments
CHECK Outstanding Sales Orders
 Ensure they are current
 If old orders with balances, move to an invoice at current date
(Discuss with client)
 Check PAID orders – Customer Deposits Liability Balance
match outstanding Customer Orders payments
CHECK Laybys and Gift Vouchers Payments
 Ensure they are current
 Ensure they marry to register or report of POS system
Customer Statements
CHECK frequency of producing statement
CHECK layout of statement and form of delivery (email, post, fax)
Purchases
Payables
CHECK Outstanding Creditors
 DISPLAY Payables Summary report and review 60-90 days
outstanding invoices.
 REVIEW any old amounts; check whether any outstanding
amounts should be credited.
 REVIEW Returns and Debits - should credits be applied to
current sales or cleared as they are incorrect?
CHECK process for review supplier statements
REVIEW Clients’ Credit Application Process (If applicable)
Purchase Orders
CHECK Outstanding Purchase Orders
 Ensure they are current
 If old orders with balances, move to an invoice at current date
(Discuss with client)
 Check PAID orders against Supplier Deposit Asset balance
________________________________________________________________________________
YBB-Initial File Review Checklist (Nov 2015)
© The Institute of Certified Bookkeepers
Page 3
Capital Acquisitions
REVIEW various expense accounts that the client may have used for
capital purchases and capital acquisition threshold used
Inventory
Stock Setup
CHECK which stock system is used - Perpetual or Physical Stock
System?
Stock Balances
CHECK Stock Value and Average/Fixed/FIFO on Stock Items
CHECK Stock items Structure/Reporting
CHECK Receipts of stock without a bill against relevant liability
Stock Maintenance
CHECK operation of maintaining stock levels and distribution
CHECK frequency of stock take
Payroll
Employees Setup
CHECK Employee Cards
 REVIEW Employee Details, Start Date and Notes
 REVIEW Standard pay, Timesheets or status
 REVIEW Employee rate of pay against Award/Contract
 REVIEW Employees Tax scales and TFN Declaration Form
 ENSURE Tax File Numbers are entered, addresses and
termination dates (if applicable)
REVIEW Employees payment method and cycle
REVIEW Employees hard copy documents
Payroll Setup
CHECK General Payroll Information
 Confirm the current payroll year, normal hours worked per
week, Tax Table revision date, rounding cents and
Superannuation Fund Default
CHECK Payroll Categories
 Display the Payroll Summary Report to determine what payroll
categories the client uses. Check and review the setup of
each. Pay special attention to post and pre-tax treatment.
CHECK Deductions used and ensure correct tax treatment
CHECK Salary Sacrifice if used and review liability accounts
CHECK Payroll Tax threshold if not registered
Entitlements
CHECK calculating correctly:
 Holiday leave entitlement should be linked to holiday pay
 Personal leave entitlement should be linked to sick pay
CHECK setup to ensure hours are correctly accrued in line with
employee’s Award/Contract
REVIEW lifetime balances report and note any leave balances that
look unusual. For example: negative balances
Superannuation
CHECK Employer Super Default Fund
REVIEW Employee Super Choice Form
CHECK SGC category (Superannuation Guarantee Expenses)
 Ensure % rate is correct
 REVIEW Payroll Categories exempt from SGC
 REVIEW pay transactions to ensure super is calculating correctly
 REVIEW whether client pays superannuation monthly or quarterly
________________________________________________________________________________
YBB-Initial File Review Checklist (Nov 2015)
© The Institute of Certified Bookkeepers
Page 4
CHECK if Salary Sacrifice Superannuation is used
 Check setup of salary sacrifice and under Superannuation Tab
 Ensure PAYG is exempt
 Check SGC% calculation on Salary Sacrifice
CHECK Unpaid Superannuation
 Check business owner’s knowledge of unpaid superannuation
 Check if a SGC Charge Statement has been or to be lodged
Reconciliations
PRINT Payroll Summary to date to:
 CHECK Payroll Gross Wages = Wages and Salaries Expense
 CHECK PAYG Withholding Liability ensuring IAS/BAS payment
cleared liability
 CHECK Superannuation Liability ensuring last payment cleared
Liability
GST
BAS Setup
CHECK setup for
 GST Cash or Accrual and Frequency (Monthly/Quarterly/Annual)
 PAYGI %
 PAYGW (Monthly/Quarterly)
 Fuel Tax
 WET
 Fringe Benefits
Review BAS Lodged
CHECK BAS lodged for current year against
 GST Summary
 Payroll Summary
 Profit and Loss Income against T1
CHECK BAS payments have been entered correctly
 GST payment to GST Collected and Paid
 PAYGW to PAYG Withholding Liability
 PAYGI to Provision for Income Tax
 Fuel Tax/WET/FBT to relevant accounts
 Reconcile GST and PAYGW Accounts
CHECK Rounding Account Used
Reporting/Forms
Standard Reports
CHECK Custom/Standard Reports Setup
 Reports required each Month
 What format – emailed or printed
CHECK Custom Forms used
________________________________________________________________________________
YBB-Initial File Review Checklist (Nov 2015)
© The Institute of Certified Bookkeepers
Page 5