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	Year end:	Reviewed by:
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	Subject: Control Environment Checklist
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	Objective	To ensure that basic controls are in place and that financial records are properly prepared.	Y/N/NA	Comment
		Bank reconciliation regularly performed, agrees to bank statements and nominal ledger.
		Use of bespoke software to prepare accounting and payroll records.
		Cash counts regularly performed
		Bank covenants have not been breached.
		Surplus cash is properly invested.
		Systems are in place for identifying related party transactions, such as separately identifiable directors’ loan accounts, inter-company loan accounts, etc
		Duties for approving, recording and reconciling transactions are segregated.
		Employees have relevant skills to perform their work.
		Management are involved in day to day management.
		There is no reason to question the integrity of management.
		Senior management have systems in place for formal approval of transactions.
		Management perform regular reviews of key controls.
		Management implement controls recommended by the auditors/accountants.
		There have been no changes in key staff during the year.
		Closing balances in the last financial statement agree to opening balances in the general ledger.
		There has not been a change in ownership during the year.