INTERNAL AUDIT CHECKLISTI General

Particulars Checked By Remarks

A Permanent InformationName of Auditee -Organisation Type -Period under Audit -Unit Head -Audit Team -

B Documentation1 Proper filing of all documents2 Proper coding of all files3 Proper indexation of all documents in each file4

5

6

C Secretarial1

2

3

4

5

Original documents related to land, building, fixed asset and vehicle etc are kept in the custody of the Unit Head.

Unit head ensures proper security and safety measures for original and important documents to avoid theft, fire, rain or any other peril of whatsoever nature.

All important documents and correspondence are stored in soft format (PDF-Scanned Format) with proper listing

All the secretarial documents and the documents related to Registrar of Companies (ROC) are kept at the registered office of the Company.

All types of resolutions to be passed are drafted by the Secretarial department only.

The original signed copy of the resolutions passed are kept by the secretarial department at the registered office and the copy of the same are sent to the Unit Head for his records.

It is the responsibility of the Unit Head to intimate all the concerned departments about the change in designations or change in directorship /signing authorities or any other relevant change that need to be informed time to time on behalf of the company.

Minutes book and statutory registers to be kept and updated by the Secretarial staff. at the registered office.

D Safety And Security Measures 1

2

3 A list of phone numbers of all the employees is displayed at each desk. 4 First aid kit is kept at easily accessible places 5

6 Safety training to labour and official persons. 7 Emergency medical training to staff by doctors. 8

9

10

E Legal1

2

3

4

F Outdoor & Vehicle1

2 The duty pass duly signed is listed and documented in a separate file3 Separate log book is maintained for each vehicle, which is timely updated4 The log book is checked, verified and signed by the Unit Head on daily basis

Fire safety measures such as fire extinguishers, fire alarms and sign boards for “NO SMOKING” zone are kept

Doctor, Fire brigade, Police, bus and railway inquiry and higher management contact numbers are displayed at each desk.

All the drawers are properly locked and a bunch of duplicate keys is kept with the unit head.

Detail of Work stations is displayed at each desk in a proper format so that the complete information about the employees' name & designation can be shown.

Hardware security- no person is allowed to carry the system or take files from the system with prior permission of Immediate Boss.

All the important files/documents kept in soft copy is secured through unique file password.

All the original documents related to Intellectual Property Rights (IPR) i.e. Trademarks, copyrights, patents, ISO certificates. are kept with the Unit Head.

The original documents, notices etc filed by the legal advisor / advocate are kept by the Unit Head.

The proceedings of the same are summarized by the Unit Head with proper attachments and account statements.

Listing and documentation of legal and IPRs files is done as per points mentioned under Heading- DOCUMENTATION.

Any employee leaving the office during the official hours shall fill the duty pass and get it signed by the authorised person

5 Any employee using his/her own vehicle for official purpose is provided with the conveyance allowance as per the limits decided by the Unit Head.

INTERNAL AUDIT CHECKLISTII Human Resource

Particulars Checked By Remarks

A REQUIREMENT ASSESSMENT

• No. of Executive required• Kind of Executive required• Qualification required• Experience• Salary Slab.

B Interview1

• One Functional Head – Respective departmental head.• One Higher official – Unit Head• One HR Manager /Executive 2 A proper form provided by the HR Executive is duly filled by the candidates.

3

C Letter Of OfferOffer letter is given to the selected candidates within 2 days for their acceptance

D AppointmentCheck that

1 Appointment letter is given within 3 days of joining.2 Personal data form/Service book is filled within 3 days of joining.3 Terms and conditions associated with appointment presents a clear picture.

4 Complete code of conduct is provided to the candidate who thoroughly reads it

5 Code of Conduct shall be updated timely

Check that details relating to manpower requirement is informed to the management “1month” well in advance.-

Check that interview is taken by a committee appointed for the purpose, comprised of minimum three members-

The interview is conducted at Unit level for first phase and the short listed candidates are interviewed by the higher management for final phase.

E Training & Development1

2 Lock-in-period of one year on completion of probation period.3

F Legal Compliances Relating To Hr-1

• The Apprentices Act,1961• The Employee’s Provident Fund and Miscellaneous Provisions Act,1952• The Employee State Insurance Act,1948• The Factories Act,1948• The Minimum Wages Act,1948• The Payment of Bonus Act,1965• The Payment of Gratuity Act,1972• The Payment of Wages Act, 1936• The Trade Union Act,1926• The Workmen’s Compensation Act,1923• Factory and Boilers Act• The Industrial Disputes Act, 1947• Contract Labour (Regulation and Abolition) Act, 1970• The Industrial Employment (Standing Orders) Act, 1946• Air (Prevention and Control of Pollution) Act, 1981• Water ( Prevention and Control of Pollution) Act, 1974• The Environment (Protection) Act, 1986• Noise Pollution (Regulation and Control) Rules,2000• The Personal Injuries (Compensation Insurance ) Act, 19632

3

Probation period of 0-3 months is taken into consideration depending upon the work requirements.

Performance appraisal during probation period and thereafter is done by the immediate boss and HR Executive and then the same is reported to the higher management.

Check for Applicability of various acts and its due compliance by HR Executive-

All the required registers and documents as per above applicable acts is maintained.

Various challans are paid on time (i.e., Challan for PF has to be paid by 15th of next month and Challan for ESI has to be paid by 20th of next month)

4

G Accidents & Causalities1 Report of the accident is prepared on the same day in the prescribed format

2 Legal Provisions applicable are complied with.3

H Attendance1 Daily attendance is taken either in morning or evening in Attendance Register

2 Separate register is maintained for daily workers & staff on probation2

3

I Salary And Wages ProcedureCheck for-

1 Pay-scale and salary structure of the labour & staff.2

3 Overtime & Idle time workings4 Salary payment by 10th of next month.5 Proper workings of salary sheet and its authorisation thereon

J Leave Procedure

K TERMINATION/RESIGNATION

L GRIEVANCE HANDLING

Consolidated HR records are sent to the HR head for the group including details about all the compliances made by the Company by 25th of next month in the prescribed format.

Facility of free medical check-ups is provided to the employees at regular intervals.

This register is checked and signed by two Executive (i.e. by HR Executive and Unit head)

Gate pass register is maintained. Entries relating to visitors is made in the register and at the end of the day it is verified by one authority.

Calculations relating to allowances, deductions, perquisites etc according to the provisions.

Various leaves taken by employees are classified in Paid, Casual, Sick and are allowed as per the HR Policy

Proper notice or salary in lie thereof before resignation/termination as per HR Policy

1

2 Reporting is done both in verbal and written format.

Any grievance relating to workplace is informed to immediate bosses or the concerned unit head who further reports it to the higher management.

M EMPLOYEE RECREATIONAL POLICY1

2

3

4

5

N REIMBURSEMENT OF EXPENSES

After completion of 18 months of service, promotion or hike in salary on the basis of performance appraisal and as per management decision.

Bonus amount would be calculated/decided depending upon the employee performance and at the discretion of management.

Employees should submit Self Appraisal Performance Report on quarterly basis.

Employee birthdays and anniversaries is given due consideration one Greeting card should is sent on behalf of the Company.

A suggestion or a compliant box is kept and it is the responsibility of the HR Department to check the same and reporting of the same to the unit head.

Expenses are reimbursed to the employees incurred for official purposes as per the decision of management committee.

INTERNAL AUDIT CHECKLISTIII Purchase & Inventory Management

Particulars Checked By

A Material ControlCheck proper records for-

1 Availability of materials JB2 Control over the investment in material JB3 Reasonable Prices JB4 Wastage Control MS/JB5 Control over the spoilage and obsolescence MS/JB

B Purchase1 AM/JB

2 All the purchases are properly authorised as per the policyUpto Rs 5000/- Purchase ManagerRevenue purchase > Rs 5000/- Unit HeadCapital purchase > Rs 25000/- BOD

C Requirements1

D Vendor Registration1

2 Check proper maintenance by Purchase manager of master list of the suppliers

E Selection / Assessment of the suppliers1 Check for following aspects while selection of suppliers-• Quality• Price• Terms / Conditions (availability etc.)• Transportation Cost• Discount• Credit Facilities

Concerned Person

There should be at least two personnel for the purchase department with rights and duties as per the Purchase Policy

Requirement of the Stores Department is in accordance with the production schedule and on the basis of need of the particular item whether it is capital or revenue item is forwarded through Purchase Indent in 2 copies

The Purchase department registers the potential suppliers according to the required items in the prescribed format.

2

3

If any other method is followed, mention it-4 Proper analysis of the quotations invited in the prescribed format5

6 Documentation of the analysis summary sheet with the PO

F Execution of Emergency Purchase1 Check for following points-• Reasons / Conditions• Time Basis• Price• Dealers• Others – Credit Terms, Transportation, Taxation etc.2 Finalised by a Committee comprising of-• Purchase Officer• Finance / Accounts Officer• Respective Department Head

G Purchase Order1 PO is prepared in 2 copies in the prescribed manner and is duly authorised

2 Regular follow up of PO for timely receipt of materials

H Master List for Purchase

I Receiving and Inspection of the Material :1 All supplies at receiving department.2 Check against Purchase Orders.3 Inspection of material 4 Proper delivery of goods to the concerned department / store.5 Proper authorization by the receiving authority.6

Final selection is vetted by a Team consisting of Purchase Manager, respective departmental head, finance / accounts person and if required the technical person of the company.

Tender is raised in the specified format for specific purchases along with terms & conditions of the company

Proper explanatory note is prepared to state the reason for selection of particular supplier by the selection committee

Check proper maintenance by Purchase manager of following master list of the suppliers

All returns, shortage, rejection must be informed to the purchase as well as to the accounts department so that the payment to / debit notes on the suppliers should be made / raised accordingly.

7

8 Purchase orders file should be maintained properly.9

10 Checking quality of the material received by the Quality control department.

J Stores/Inventory Management1

2

3

4

5 Separate authority for purchase and stock taking.6 Continuous stock verification.7

8

9

K Classification & Coding of Material1

2 Authentic code no. is allotted for proper distinction / description

L Material Control System :

M Inventory Records:1 Daily Updation of Stores Ledger2

3 Issue of material from stores in proper format4

5 Scrap / wastage should be recorded and reported in a proper format

Goods Receipts Notes (GRN) should be endorsed to accounts and sent to purchase department.

Receiving, unloading and unpacking the material delivered by the suppliers under delivery challans/ Invoices.

Proper counting of the material received and recording and classification of the same.

After receiving of the required material the invoice should be supported with the Material Inspection Report and sent to the accounts department.

Proper authorization and verification of the MIR by the purchase manager as well as the higher authority.

Control measures i.e. stock taking & supervision of the material received should be done on periodic basis (Monthly / fortnightly / weekly).

Shortage/excess of the material is reported to the purchase as well as the production department.

Any discrepancies / damages must be recorded and reported to the concerned authority.

There should be a proper control over the Scrap / Wastages / Damages/ Defectives etc.

Proper classification as construction material, consumable stores, spare parts, tools etc.

Analysis of Material / inventory according to their value, movement, quantity i.e.

·        ABC ( High : Medium : Low value )·        FSN ( Fast : Slow : Non moving )

Check Stores Ledger for proper stock keeping, recording material receipts, issues and balances

In case of material transfer from one job to another job, the material transfer note will be prepared in 2 copies

INTERNAL AUDIT CHECKLIST

Remarks

To be followed from 01-01-10

>5000- PO to be made from 01-01-10

INTERNAL AUDIT CHECKLISTIV Production

Particulars Checked By Remarks

A GeneralCheck that

1

2 Proper listing of products with their respective codes and brand names3

4

5

6

B MachineryCheck that

1 Fixed Assets Register is maintained & updated in the prescribed format2 Proper coding for each capital asset3 New Machinery-a The requirement of new machines can arise due to following reasons:· Increase in demand· Change in technology· Change in product line· Increase in productionb

c

Proper reporting is done by assistants to respective division in charge & further reporting by in charge to immediate boss

The record for no. of labour required to work at each machine for standard production is maintained as per given format

Calculation of idle time is done on percentage basis and in case the idle time exceeds 25% the reporting of the same to the higher management on daily/weekly basis with proper reasons

Calculation of overtime and recording of the same is done by the Production Manger and he further reports it monthly to the Unit head and the HR coordinator of the unit.

The total area covered by the production floor with its utility including storage for raw and finished goods is recorded in prescribed format.

Proper assessment is done by Production Manager/In charge approved by the Unit Head

Requisition to the purchase department is sent for further processing as per purchase and inventory policy of the Company based on Quotation Analysis.

d

4 Capacity Analysis of machines is done in the prescribed format5

6 Separate machine log book is maintained and updated7

8

9

10

C Raw materialCheck that

1

2 Purchase of raw material is done as per the Purchase Policy3

4

5

6

D PROCESSMethod of production followed by Company-

· Job Method· Batch Method· Flow/Process Method

The new machines is properly installed in supervision of the Technical person and the Unit Head and the reporting of the same is done to the higher management after installation.

The upkeep and maintenance of machine is done on regular basis so as to increase their life and proper track of the machine overhauling is maintained in the prescribed format.

User manual/instruction kit of machines is displayed through charts and hoardings at various places of factory.

Machine maintenance chart is displayed and updated for each machine near by the machine itself.

Proper reporting of machine breakdown/shout down is done by production in charge to unit head with valid reasons

Shut down for more than 3 hours is reported to Unit Head which further reports to higher management

Need assessment is done by the Store-keeper and the authorization is done by the Production Manager/In charge.

The Quality Controller properly verifies the quality of the raw material by taking samples and records the same in prescribed format.

In case the quality of the raw material is not of good quality, the reporting of the same is done to the Unit Head and higher Management .The whole lot of raw material is stored separately and Material Return Form is filled by the Store keeper, duly verified by the Quality Controller.

The raw material to the production is issued by the storekeeper/store in-charge after signing the issue slip. The production in-charge give its receiving through its initials on the issue slip after properly weighing the material issued.

The issue of raw material for production is on the basis of production plan which is based on demand & availability.

· Uniform Method

E Finished Goods

Check that1

a

b

2

3

F WastageCheck that

1 Proper classification of wastage is done into Normal & Abnormal.2 Classification as abnormal is done if wastage is occurred due to the following:

· Error in machine· Raw material quality issues· Power cut with prior information· Labour mistake· All other wastage which is not normal2

3

The production Manager verifies the final product according to the standard production plan and records the same with deviations, if any in respect of quality and quantity both.

Quantity Analysis is done by the Production Manager as set out in master chart of the particular product.

Quality Analysis is done by the Quality Controller for the finished goods. The Master Card for the quality check is pasted at each such place where the production process is carried on.

Samples taken for above purpose are recorded in the quality check register. Verify the no. of samples taken per lot of production.

The finished goods inventory is maintained as per the Purchase and Inventory Policy of the Company.

The wastage is properly recorded in the wastage register/sheet on daily basis along with proper reasons and it is shown in the production MIS in the prescribed format.

The monthly average wastage is properly calculated and if the wastage exceeds the standard wastage than necessary steps to reduce the wastage are taken.

INTERNAL AUDIT CHECKLISTV Sales Coordination

Particulars Checked By

A Recording Sales Order1

2 Check for hard copy of orders received through email

B Price List1

Complete & updated price list for each product is kept with Sales Coordinator 2

3

C Invoicing1 Check that invoice is as per latest price list2 Also check that it is according to the provisions of Excise, VAT/CST etc.3 Credit terms & interest thereon & maximum & minimum credit period4 Discount schemes5

D Dispatch1 Check that goods are removed as per applicable Excise Rules.2 Also check Sales coordinator's responsibility that-• The goods are properly checked as per sales order received.• The duties and taxes are properly paid / charged.• The transportation cost is accounted• Proper weight / measurement done.• Gate pass / Outward note prepared.

All the orders received are recorded in Sales Order Register in the prescribed format

The revision of price list is authorized and verified by the Unit Head and informed to the higher management.

Revision of the prices is, as per industry & market factors, and informed to the Sales Coordinator and Dealers/Distributors by the Unit Head

Check for any changes in the invoicing software and its reporting to higher management

E Verification of Finished Stock1 Inventory of Finished Goods kept by Sales Coordinator2

3

4 Check for • Proper utilization of the space.• Proper coding• Precautionary measures• Arrangement on the basis of moveability.

F After Sales Service1

2 After sales queries shall be handled by the sales coordinator.3

G General

Physical Verification of Finished Goods on monthly basis by Manager (Commercial) with proper recording of same in hard copy

Further, bifurcated as per the moveability and the value of the same .i.e. FSN, ABC analysis.

If any after sales services are given by the unit, then the same shall be properly recognized and recorded.

If action is taken for solving the query then it shall be as per the rules of the unit and shall be informed to the Unit Head.

Verify age-wise analysis of debtors done by the Manager Commercial on monthly basis

INTERNAL AUDIT CHECKLIST

Remarks

INTERNAL AUDIT CHECKLISTVI Marketing Policy

Particulars Checked By Remarks

A Marketing ProcessVerify that the company is following prescribed marketing procedure

• Situation Analysis• Market Strategy• Market Mix Decision• Implementation

B Situation AnalysisCheck that following procedure is properly followed

1 Identifying customer needs & company's resources to fulfill those needs

2 SWOT Analysis as per the prescribed format3

4

C Marketing StrategyCheck that following procedure is properly followed

1 Product Life Cycle - stage2 Pricing Decision3 Market study of product - seasonal demand4 Authorisation of extra discount5 Prospective buyers- identified by proper coordination from dealers6 Prospective marketing territory analysis- unit head7 Verify the Costing method used by Unit Head8 Sanction of discount by unit head

D Marketing Mix DecisionCheck that following procedure is properly followed

1 Proper classification of present brands as per size, quality etc2

3 Proper market research before launching new product4 Market survey to find potential market/product5 Competitors analysis to know market position6 Packing - Packing Standards & its inclusion in cost7

Market research conducted by Marketing Manager and reporting same to Production Manager/ Higher Management

The budget for market research decided by Unit Head with prior approval of Higher Management

Verify the approval of higher management for introduction/exit of any brand/product

Pricing - Revision after considering Market Analysis, Raw Material Price by Pricing Committee as per Marketing Policy

8 Distribution Channel (Place)/Placement:i Channel-

Super Stockiest - Distributor - Wholesaler/Retailerii Verify the selection procedure as per respective policy-• The Financial Position of the dealer• Goodwill in the market• Credit Worthiness• Past Relations / records• Market Accessibility etc.

iii Appointment after proper application in the prescribed formativ Security / indemnity bond / guarantee signed by the dealer.iv Regular follow up through marketing personnelv Margin of distributor approved by Unit Head

vi Reason for Sales Return- Payment or Quality sent to higher management

9 Product Promotioni

ii

E Implementation & ControlCheck that following procedure is properly followed

1 Proper hierarchy for Marketing Control-

2 Sales Control-i

ii

iii

iv Check Turnover & Cash discounts as per applicable slabs

Verify the approval of budget by the higher management after it is set by Finance Manager & Unit Head

Also verify various schemes given to traders & consumers, set by marketing manager for its authorisation

BOD - Managerial Personnel - Unit Head - Marketing Manager - Sales Representative

Check weekly/monthly/quarterly/annual sales targets set product wise in the prescribed format

Reporting of the SRs to Marketing Manager directly on weekly basis, having complete reporting of each SR separately for every product individually, comprising of daily detail in the form of DSR (Daily Sales Report).

Monthly sales appraisal shall be done by the Marketing Manager for all the SRs working under him in MSA (Monthly Sales Appraisal Form)

INTERNAL AUDIT CHECKLISTVII Tour & Travel Allowance

Particulars Checked By Remarks

A Reimbursement Grades-1 For Cities

A - All metropolitan & Capital citiesB - Cities with population < Rs 3LakhsC - Cities with population > Rs 3Lakhs

2 For EmployeesSpecial Grade - Unit Head & Higher ManagementGrade I - Regional Manager/Marketing ManagerGrade I - Functional Manager/Marketing Executive

B Reimbursement of Expenses1

2 Other reimbursement are as per discretion of Unit Head with proper justification

3 Verify the correctness & authorisation of claims4 Verify limit for advance against tour at Rs 5000 and its adjustment later5

Verify that reimbursement is as per Tour & Travel Policy, and claims are submitted with Tour Progamme approved by the Immediate Boss/Unit Head

Verify proper supportings i.e. travel tickets, hotel bills etc with the travel expense reimbursement bill.

INTERNAL AUDIT CHECKLISTVIII Taxation

Particulars Checked By Remarks

A Check for applicability of various Acts1 Income Tax2 VAT3 CST4 Excise Duty5 Service Tax

B PaymentCheck that

1 Payment is made before due date by Authorised person2 Proper due date chart is maintained and displayed.3

4 Copy of challans is sent to Asst Taxation Manager by 10th of next month5

6 All the financials are certified by Unit Head

C Filing & Checking of ReturnsCheck that

1 All the challans and returns are submitted directly by the unit.2

3

4 The following returns are timely filedi e TDS Returnii Excise Return:iii VAT Return:iv Service tax Return:v ESI & PF Return:

The Unit Head intimates the Asst Taxation Manager about the statutory payments through mail/hard copy before 3 days of the due date.

Monthly consolidated report in prescribed format for all statutory payments is forwarded to Asst Taxation Manager

The same is verified by Asst. Taxation Manager before filing and confirmation sent

All legal compliances are fulfilled by Unit Head and the same is informed to ATM

D Scrutiny/ Audit objection / Query from Govt. DepartmentCheck that

1

2Asst Taxation Manager checks the status of scrutiny/ audit objection/ query etc.

3

E GeneralCheck that

1

2

3 The following certified details are provided by Unit Head to ATM -i Challan of tax paymentii Ledger of the account.iii Account statement of party / Purchase / sales etc.iv Rate of TDS/ VAT/ CST/ Excise Duty / Service tax / PF / ESIv Statement of VAT-7,VAT-8 & VAT-9vi Details of statutory forms (VAT forms) used during the period.vii Ledger of VAT / Excise / Service Taxviii Return shall be Certified / verified by Unit head.ix Return shall be authorized by taxation Dept.x Return shall be filed on due date

The information of the notice received by the unit from the department (i.e. Income Tax, Sales Tax etc.) is sent to the Asst Taxation Manager by the Unit Head.

Asst Taxation Manager prepares the reply of the order / query received by gathering information requirements from Unit Head and send a copy to Unit Head

Any amendment in the applicable act is informed by the Asst Taxation Manager to the Unit Head with the due date of applicability.

Unit Head follows the Notification / circular (Direct & Indirect tax) issued by Govt. when informed by the Asst. taxation manager.

INTERNAL AUDIT CHECKLISTIX Finance

Particulars Checked By Remarks

A StockCheck that

1

2 Physical verification is done monthly by unit staff3 Proper classification of Non Moving Stock is done by unit4

B CashCheck

1

2

3

4 Payments > 20000 are made through cheque5

6

C BankCheck that

1 Minimum bank balance at any time is Rs 50002 Balance above a specified limit is invested in FD by approval of AFM3

4 The Cheque Details Register maintained by Ass. A/cs and vetted by Unit Head

5

6

Age wise analysis of FG is done on monthly basis by the stores keeper and authorised by Manager Commercial

Above records are verified by Manager Commercial and reported to Unit Head, which further reports it to Finance Officer

Physical cash in custody of Accounts assistant at least once a month, prefer surprise checks

The minimum & maximum cash balance at any point of time is Rs.10,000 and Rs. 1 Lac respectively

That physical cash is verified by person other than the person in who's custody cash is kept, which is further approved by unit Head

That Assistant finance manager's surprise physical verification of the cash, done at-least twice a month

Cash Withdrawal Note for withdrawal of cash from bank which is authorised by Unit Head

Monthly BRS is prepared by Mang. Comm and is sent to AFM after Unit Head's authorisation

The acknowledgement of the cheque received from the third party and the cheque issued to the third party

Proper recording of Bank Charges on monthly basis and informing the same to Unit Head and AFM

D DebtorsCheck that

1

2 Credit period & interest thereon as per Sales & Finance Policy3

E CreditorsCheck that

1 Payment is made through cheque only2 Maximum credit period of 30 days or discount, as the case may be is availed

3 The Creditors Turnover Ratio is calculated on monthly basis

F Real State PropertyCheck that

1 Proper listing of documents is done in the prescribed format2 All original & chain doc are kept in custody of Unit Head3

4 Search Report is obtained at the time of purchase.5

G InvestmentsCheck that

1

2 New investments are made only after proper approval by AFM3 Proper investment note is prepared by the Finance Officer.4 The original documents of the investments are secured by the Unit Head

H Loans & AdvancesCheck that

1 Proper requirement assessment is made by UH2 Comparative Rate Analysis is done by UH, which is approved by the BOD

3 Proper documentation & A/cing is done by FO4 Loan to Staff is as per Loan Policy

Age wise analysis on monthly basis is done by MC and the same is reported to Unit Head who forward it to AFM

Quartly balance confirmation & turnover ratio is done by MC & reported to Unit Head

Physical verification is done by person appointed by UH & Managerial Personnel and reporting of same to AFM

Insurance of Property- documented with Unit Head, Copy is kept with A/cs Dept.

Proper Investment Register for recording of investments and its verification by UH is done

INTERNAL AUDIT CHECKLISTX Accounts

Particulars Checked By Remarks

A VouchingCheck for

1

2Separate vouchers for cash, bank and other transactions.

3 Signature of Maker, Checker & Authoriser as per slab4 Proper documentation of each voucher5 Proper verification each voucher before entry

B Sales1 Following documents to be verified before invoicing-i Previous Accounts status of Debtorsii Status of finished goodsiii Sales Order Receivediv Goods Outward Note/ Gate Passv Sale Price as per the current price listvi Discount as per schemevii Proper Duty / Tax Structure2 Sales bill are to verified before dispatch by Excise personnel

C Purchase1

i Price Quotationsii Purchase Indentsiii Purchase Ordersiv Goods Inward Note/ Gate Passv Raw Material Inspection Reportvi Taxation/ Duty Structure2 Authorisation as per slab

Separate voucher for expenses, sales (invoices) and purchases.

Following documents to be verified before revenue purchases-

3 Following documents to be verified before capital purchases-

i Price Quotationsii Purchase Indentsiii Purchase Ordersiv Goods Inward Note/ Gate Passv Taxation/ Duty Structure

D Payment To EmployeesFollowing documents to be verified before paymenti Salary Slab (As per HR Policy)ii Proper calculation of deductions /allowances/ perquisites.

iii Calculation of PFiv Leave taken by employee (As per HR Policy)v Loans and Advances given to employeesvi

E Loans & AdvancesCheck fori Duly approved applicationii Terms of Loaniii Finance Policy

F Other PaymentsVerify for

1 Revenue Stamp for cash payment > Rs 50002 Payment > Rs 20000 through cheque3 Payment to creditorsi Terms of paymentii Mode of Paymentiii Authorisation

G Payment to Govt AuthoritiesCheck fori Due Dateii Workings by Functional Headsiii Proper Cheque/Challan detailsiv Authorisationv Mode of Payment

Signature of the preparer and verifying authority on the salary sheet.(As per HR Policy)

H General1 Fixed Asset Register - Maintenance & Updation 2

3 Information of the above is sent to AFM4 Daily MIS shall be prepared on following basis :-ii Per Day Productioniii Per Day Salesv Daily Investment Detailsvi Daily Machine Breakdownvii Daily cash inflow – outflow5

6 Monthly Consolidated MIS to AFM-i Monthly production Detail of the unitii Monthly turnover of the unitiii Monthly bank reconciliation detailiv Monthly fund flowv

Physical verification on Quarterly basis - cross verified internally by unit staff

The Daily MIS (Management Information Systems) shall be sent to the FM by next day

Monthly details of Challan /returns submitted to the various departments.