This questionnaire serves as a guide to determining the severity of deficiencies cited during the internal control testing process.
Sample questions include: Do the deficient controls affect significant accounts and disclosures? What is the nature of the accounts affected by the control failure? If evidence that the control was performed is not in place (e.g., lack of a signature on a reconciliation or control report), would you still be able to determine if the control was performed? Is there a compensating control, such as management oversight, in the business that compensates/mitigates your control deficiency? Was it tested and what were the results?