Internal audit ....urgent experts....

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Rajesh (Querist)
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04 January 2012 Dear Experts,
With due respects to the experts here....I have posted this query yesterday itself but no reply from any of the experts here. Please do read this and i know that these are all just prelimnary questions in the internal audit industry. If you people can share this knowledge and ignite the amateur ppl. it will be gr8 help for ppl. like us, since the CA Club website is only for enlightenment.
Can anyone explain me in detail what are the documents i have to verify as far as purchases is with respect to a manufacturing company is concerned?

Please give me an elabarate answer and step by step which i have to verify and document the deviation if there is any.

The company comes under ancillary automobiles.

Thanks & Regards,
Rajesh

SIVARAMAN and SUNDARAM

SIVARAMAN and SUNDARAM (Expert)
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05 January 2012 Dear Rajesh

For every industry, there will be two important divisions, one Technical Dept and another one is Accounts Department. The A/cs Dept is always a supporting Dept to all other Depts.

In your case,

1. Understand the importance of this industry as a whole.
2. What are the components which are manufactured.
3. Competitors for the same product.
4. Have one to one discussion with Factory Manager to decide what is the time generally taken for producing a good ie., order based or demand based etc.

After understanding the above issues, now you can decide the role of other depts incl a/cs.

5. Based on the above, you can draw a check list
6. Give individual weight-age to each check list point
7. Draw a audit prog
8. The result will be the audit report

Regards
CA R. MEENAKSHI SUNDARAM

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