CA Aditi is in the process of evaluating the internal controls of a company by focussing on controls operating for creditors from whom various goods…

(a) CA Aditi is contemplating using internal control questionnaire as method for evaluating internal controls. A set of questions regarding controls operating for creditors are given as under: - (i) (a) Are suppliers' invoices routed direct to the Accounts Department? (b) Are they entered in a Bill register before submitting them to other departments for check and/or approval? (c) Are advance and partial payments entered on the invoices before they are submitted to other departments? (ii) Does the system ensure that all invoices are duly processed? (iii) In respect of raw material and supplies, are reconciliations made of quantities and/or values received as shown by purchase invoices with receipt into stock records? (iv) Does the Accounts Department match the invoices of supplies with Goods Received Notes and purchase orders? (v) Do all invoices bear evidence of being checked for prices, freight, terms etc.? (vi) Are all advance payments duly authorized by persons competent to authorize such payments? (vii) Are duplicate invoices marked immediately on receipt to avoid payment against them? (viii) Are all supplier's statements compared with ledger accounts? (ix) Is there any follow-up action to investigate difference, if any, between the suppliers' statements and the ledger accounts? (x) Is a list of unpaid creditors prepared and reconciled periodically?