Check list to verify purchases!!!

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Rajesh (Querist)
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19 February 2014 Dear Sir,
Please can anyone tell me what are the check list and what are all the records to be verified for purchases by internal audit department in case of a manufacturing company.

Please explain me your answers will be highly appreciated.

Thanks & Regards,
Rajesh

Yogesh Shukla

Yogesh Shukla (Expert)
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19 February 2014 Sales
** Accounting policy followed by the company for recognition of sales
** Cut off procedure
** Credit notes/ Debit notes if any,
* *Break up for Export and domestic Sales
** Check with Reconcilation of VAT and Excise
** Variance analysis
** Pending orders

Other Income
** Vouching
** Verification of interest amount
** Verification of Dividend amount
** Verification of Royalty amount and agreements for the same
** calculation for any sale of asset/ scrap etc
** Cut off procedure
** Variance analysis

Purchase and other Direct Expenses:-
** Break up for different type of Purchase
** Custom Duty analysis
** Duty paid on purchases
** Capitalization of incidnetal expenses relating to Purchase
** Purchase Retun and DR Note confirmation
** Cut off procedure
** Variance analysis
** Verification of PO (open or not open)

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