MONTH-END WALKTHROUGH QUESTIONNAIRE

Control #

Month-End Close Walkthrough

The accounting manager prepares the monthly

close calendars and the assistant controller
prepares the quarterly close calendar.

The revenue manager reviews the accounts

receivable posting journal before posting to the
general ledger and the assistant controller reviews
and signs the accounts receivable reconciliation.

The account manager retrieves all accounts

payable data and generates the general ledger
posting journals and posts them to the general
ledger. The assistant controller reviews and
approves the accounts payable aging to the
general ledger reconciliation.

All manual routine journal entries prepared by the

payable specialist, payroll specialist or billing
specialist are reviewed and approved by either the
accounting manager or the revenue manager.

Non-standard journal entries are prepared by the

accounting manager and approved by the assistant
controller and/or VP of finance and
accounting/controller before posting.

The accounting manager reviews the journal entry

log to ensure completeness of all items identified.

ERP System A journal entry system controls:

sequentially ordered journal entries, valid user and
password, validation rules for department code and
cost centers, balanced entries, valid accounts
used.

The assistant controller and controller review the

consolidated flux in detail.

The CFO performs a second-level review of the

U.S. consolidated flux analysis.

10

The financial statement allocations are pre-set in

ERP System A.

11

The director of corporate financial planning and

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Walkthrough
Step
Conducted

Is the
Control
Working
Properly?

Control #

Month-End Close Walkthrough

Walkthrough
Step
Conducted

Is the
Control
Working
Properly?

analysis reconciles the ERP System A income

statement with the ERP System B income
statement reports to ensure that the allocations are
consistent.
12

The assistant controller reviews and initials all

reconciliations prepared by the accounting
manager and by the revenue manager.

13

The reconciliation log is used to track all balance

sheet account reconciliations.

14

The accounting manager prepares the common

stock rollforward to tie out all share activities in the
general ledger for the month to supporting reports.

15

The consolidated financial statements (balance

sheet and income statements) are distributed to
the controller and CFO for review and approval.

16

The accounting manager agrees the balances in

the consolidating balance sheet to the individual
source document balance sheets where anomalies
in the consolidation are noted (for example, nonzero balances on consolidating investment
accounts).

17

The assistant controller and/or the controller review

the consolidating balance sheet to ensure:
consolidating investment accounts are zero,
intercompany accounts are zero, and intercompany
reconciliations are reviewed

18

The assistant controller and/or the controller review

the consolidating balance sheet to compare
consolidated balances with prior quarter
consolidated balances and explain significant
fluctuations.

19

The assistant controller or controller reviews the

reconciliations for all significant and/or highexposure balances, including; cash, accounts
receivable, due Company N, accruals, restructure
liability, goodwill rollforward.

20

The assistant controller and/or controller reviews

the rollforward of equity to the by-site income
statement.

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Control #

Month-End Close Walkthrough

21

The assistant controller reviews the retained

earning rollforward prepared by the accounting
manager.

22

The VP of investor relations sends the draft press

release to the assistant controller, director of
corporate financial planning and analysis, and
controller for review and approval. All numeric data
is tied out to the companys consolidated balance
sheet and income statement.

23

The earning release is reviewed by the public

accountants and in-house and external legal
counsel for appropriate disclosure.

24

Once the 10Q/10Ks financial data is tied out by the

assistant controller, it is sent to the independent
auditors, general counsel, controller, CFO and
CEO for review, comments and approval.

25

The 10Q/10K is submitted to the audit committee

for review and approval.

26

As part of the budgeting process, the company

performs a budget-to-actual review on a monthly
basis.

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Walkthrough
Step
Conducted

Is the
Control
Working
Properly?