26 July 2010
Dear sir, As am going to start Subcontracting/Job work Audit i want some info and inputs from u for making my audit in very good process and findings. As there is two control points in job work audit: Material & Pricing Control. Can u provide some inputs on these controls how to check and what are the criteria need to be check on this audit.
26 July 2010
Dear Gouri Sankar, As you rightly said the two control points are material and pricing control. However the key areas you may look into are the terms of sub- contract. Eg.No. of employees to be employed, time to be spent there, reimbursement of certain expenses if given in the contract. Attendance how maintained, disposal of payments match with the contract terms. Quality check, who has to authorise/certify the quality. Who is to manage stock, what are the basic amenities to be provided for the sub contractor, Books to be maintained by the sub- contractor. Reports to be submitted by the sub- contractor. Penal provisions.... it goes on... If you read the contract terms , you can comfortably move on.. all the best!
CAclubindia
