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ORGANIZATION NAME INTERNAL CONTROL QUESTIONNAIRE PURPOSE: Internal controls help determine the effectiveness of a business process or the systems. The following list of questions is meant as a systematic and objective tool to assess regulatory or policy effectiveness and compliance in the workplace. Department: Level 1 Strongly disagree Level 2 Disagree Discussed with: Level 3 Neutral Level Date: Level 4 Agree Level 5 Strongly agree Comments

Question Control Environment A. Risk management philosophy 1. Management communicates clearly to the employees the level of integrity they expects from them. 2. Written code of conduct or other formal policies are in place and are required to be followed by employees. 3. There are incentives or disincentives to follow the code of conduct (or other similar formal policies). 4. The company culture encourages whistle-blowing. Control Environment B. Commitment to Competence 1. Employees have a clear understanding of their job scope. 2. Employees are competent in the skills required in performing their job scope. 3. Management frequently reviews the performance of employees and provides feedbacks where relevant. Control Environment D. Organization Structure 1. There is a clearly defined line of authority and responsibilities. 2. The company has many hierarchies. Control Environment E. Assignment of Authority and Responsibility 1. Employees are empowered to exercise their own judgments. 2. Employees are held accountable for their mistakes made in performing their

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Question duties. 3. Management makes clear to the employees the level of authority possessed by key personnel in the company. 4. Management assigns responsibilities based on the level of competency possessed by the employee. Control Environment F. Human Resource and Policies 1. Employees are hired based on their abilities. 2. When hiring new employees, integrity and ethical values are some of the key things that management looks for. 3. The employee compensation scheme is linked to performance. 4. Formal training is provided for new employees joining the company. 5. Formal employment policies are in put into place by management. Risk Assessment A. Goals and objectives 1. The mission and vision of the company is clearly communicated throughout the whole company. 2. Objectives and targets set are realistic and achievable. 3. Employees participate in the setting of objectives. 4. Management proactively plans for and anticipates changes in the business environment. 5. Critical success factors are identified and communicated throughout the company. 6. There are measures in place to monitor the achievements of objectives and targets. Risk Assessment B. Risk There is a formal risk management programme

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ICQ.doc