27 November 2007
INTERNA AUDIT CHECK LIST VERIFICATION
CASH BOOK
BANK BOOKS
JOURNAL ENTRIES
SALES
STORES & SPARES PURCHASES
LEDGER VERIFICATION
AGREEMENTS
STATUTORY OBLIGATIONS STATUTORY ,RETURNS, RECORDS AND REGISTERS LIKE BOARD AND SHARE HOLDER MEETING MINUTES,EXCISE,PLA RG 23 ,RG-1 REGISTER REGISTER OF CHARGES ( COMPANY'S ACT),FIEXED ASSETS REGISTER, INSURANCE REGISTER SHORT BILLING details AGREEMENTS WITH SUPPLIERS AND CUSTOMERS LONG OUT STANDINGS (AMOUNTS TO BE COLLECTED)
BANK ACCOUNTS-bank recociliation statements CLOSED bank ACCOUNTS OPERATIVE bank ACCOUNTS
OBLIGATIONS UNDER VARIOUS STATUTES AND COMPLIANCE LIKE Service tax ,EXCISE,INCOME TAX, SALES TAX/VAT,COMPANY'S ACT BANK RECONCILIATION STATEMENTS SECURITY ARRANGEMENTS AMC register of the computeres, weigh bridges etc., Salary register along with their eligibility Details of output for input RATIOS Total production Daily stock statements occupancy of storage tanks for each month and tank wise Sale confirmations of various brokers List of Direct sales and sales through brokers purchase register and party confirmations with invoices to verify ratio of out put and input per ton/ltr/kg gross profit rate of last 3 years and current year % rise or fall in exp. in relation to sales deposits and interst on deposits confirmation with outsider evidence insurance claims register reconcile excise production and actual prod. records and also with sales tax /vat returns filed details of other icncome /scrap/misc. income and compare with last year stocks valuation and physical stocks random verification.
FOCUS ON METHODS AND SYSTEMS
GROSS PROFIT RATIO.( compare with industry ratios and competitors) NET PROFIT RATIO. (-do-) CURRENT RATIO. (-do-) ADEQUACY OF INTERNAL CONTROLS. DELEGATION OF AUTHORITY. VARIANCE ANALYSIS(BUDGETS vs ACTUALS). input out put ratio in production process. norms of process losses whether within stipulated norms and camparable with industry standards. compliance with regulatory regime. conversant with new laws(like serv. tax/vat/tds new stricter laws). updation of board and share holder minutes. NEW INVESTMENTS IF ANY MADE WITH PROPER AUTHORITY AND RETURNS ACTUAL OR EXPECTED. COMPLIANCE REPORT AGAINST PREVIOUS INTERNAL AUDIT REPORT. SERIOUS FRAUDS OR IRREGULARITIES-FINANCIAL /OTHERWISE. NOTICES SLAPPED BY REGULATORY/ OTHER AGENCIES. THESE LISTS ARE ONLY GENERAL. AS PER ACTUAL SITUATION AND PRACTICAL REQUIREMENTS AS DEMANDED BY APPLICABLE SITUATIONS , YOU MAY COVER /LIMIT AREAS . R.V.RAO
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