34 internal audit checklist

7/31/2019 34 Internal Audit Checklist

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e-mail : [email protected]

I General

Particulars Checked By Remarks

A Permanent Information

Name of Auditee -

Organisation Type -

Period under Audit -

Unit Head -

Audit Team -

B Documentation1 Proper filing of all documents

2 Proper coding of all files

3 Proper indexation of all documents in each file

4 Original documents related to land, building, fixed asset and vehicle etc are

kept in the custody of the Unit Head.

5 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.

6 All important documents and correspondence are stored in soft format (PDF-

Scanned Format) with proper listing

C Secretarial

1 All the secretarial documents and the documents related to Registrar of

Companies (ROC) are kept at the registered office of the Company.

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

only.

3 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.

4 It is the responsibility of the Unit Head to intimate all the concerneddepartments 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.

5 Minutes book and statutory registers to be kept and updated by the Secretarial

staff. at the registered office.

INTERNAL AUDIT CHECKLIST
http://www.vaderanco.com/http://www.vaderanco.com/


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II Human Resource


A REQUIREMENT ASSESSMENT

Check that details relating to manpower requirement is informed to the

management 1month well in advance.-

No. of Executive required

Kind of Executive required

Qualification required

Experience

Salary Slab.

B Interview

1 Check that interview is taken by a committee appointed for the purpose,

comprised of minimum three members-

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 The interview is conducted at Unit level for first phase and the short listed

candidates are interviewed by the higher management for final phase.

C Letter Of Offer

Offer letter is given to the selected candidates within 2 days for their acceptance

D Appointment

Check 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



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E Training & Development

1 Probation period of 0-3 months is taken into consideration depending upon the

work requirements.

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

F Legal Compliances Relating To Hr-

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

The Apprentices Act,1961

The Employees 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 Workmens 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, 1963

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

maintained.

3 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 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.


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G Accidents & Causalities

1 Report of the accident is prepared on the same day in the prescribed format

2 Legal Provisions applicable are complied with.3 Facility of free medical check-ups is provided to the employees at regular

intervals.

H Attendance

1 Daily attendance is taken either in morning or evening in Attendance Register

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

2 This register is checked and signed by two Executive (i.e. by HR Executive and

Unit head)

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

I Salary And Wages Procedure

Check for-

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

2 Calculations relating to allowances, deductions, perquisites etc according to the

provisions.

3 Overtime & Idle time workings

4 Salary payment by 10th of next month.

5 Proper workings of salary sheet and its authorisation thereon

J Leave Procedure

Various leaves taken by employees are classified in Paid, Casual, Sick and are

allowed as per the HR Policy

K TERMINATION/RESIGNATION

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

Policy

L GRIEVANCE HANDLING1 Any grievance relating to workplace is informed to immediate bosses or the

concerned unit head who further reports it to the higher management.

2 Reporting is done both in verbal and written format.


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M EMPLOYEE RECREATIONAL POLICY

1 After completion of 18 months of service, promotion or hike in salary on the

basis of performance appraisal and as per management decision.

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

3 Employees should submit Self Appraisal Performance Report on quarterly basis.

4 Employee birthdays and anniversaries is given due consideration one Greeting

card should is sent on behalf of the Company.

5 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.

N REIMBURSEMENT OF EXPENSESExpenses are reimbursed to the employees incurred for official purposes as per

the decision of management committee.


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III Purchase & Inventory Management

Particulars Concerned

Person

Checked By

A Material Control

Check proper records for-

1 Availability of materials JB

2 Control over the investment in material JB

3 Reasonable Prices JB

4 Wastage Control MS/JB

5 Control over the spoilage and obsolescence MS/JB

B Purchase

1 There should be at least two personnel for the purchase department with rights

and duties as per the Purchase Policy

AM/JB

2 All the purchases are properly authorised as per the policy

Upto Rs 5000/- Purchase Manager

Revenue purchase > Rs 5000/- Unit Head

Capital purchase > Rs 25000/- BOD

C Requirements

1 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

D Vendor Registration

1 The Purchase department registers the potential suppliers according to the

required items in the prescribed format.

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

E Selection / Assessment of the suppliers

1 Check for following aspects while selection of suppliers-

Quality

Price

Terms / Conditions (availability etc.)

Transportation Cost

Discount

Credit Facilities

INTERNAL AUDIT CHECKLI


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2 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.

3 Tender is raised in the specified format for specific purchases along with terms

& conditions of the company

If any other method is followed, mention it-

4 Proper analysis of the quotations invited in the prescribed format

5 Proper explanatory note is prepared to state the reason for selection of particular

supplier by the selection committee

6 Documentation of the analysis summary sheet with the PO

F Execution of Emergency Purchase

1 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 Order

1 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

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

suppliers

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 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.


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7 Goods Receipts Notes (GRN) should be endorsed to accounts and sent to

purchase department.

8 Purchase orders file should be maintained properly.

9 Receiving, unloading and unpacking the material delivered by the suppliers

under delivery challans/ Invoices.

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

J Stores/Inventory Management

1 Proper counting of the material received and recording and classification of the

same.

2 After receiving of the required material the invoice should be supported with the

Material Inspection Report and sent to the accounts department.

3 Proper authorization and verification of the MIR by the purchase manager as

well as the higher authority.

4 Control measures i.e. stock taking & supervision of the material received should

be done on periodic basis (Monthly / fortnightly / weekly).

5 Separate authority for purchase and stock taking.

6 Continuous stock verification.

7 Shortage/excess of the material is reported to the purchase as well as the

production department.

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

authority.

9 There should be a proper control over the Scrap / Wastages / Damages/

Defectives etc.

K Classification & Coding of Material1 Proper classification as construction material, consumable stores, spare parts,

tools etc.

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

L Material Control System :

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

i.e.

ABC ( High : Medium : Low value )

FSN ( Fast : Slow : Non moving )

M Inventory Records:

1 Daily Updation of Stores Ledger

2 Check Stores Ledger for proper stock keeping, recording material receipts,

issues and balances

3 Issue of material from stores in proper format

4 In case of material transfer from one job to another job, the material transfer note

will be prepared in 2 copies

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


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Remarks

To be followed from 01-01-10

ST


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


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IV Production


A General

Check that

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

reporting by in charge to immediate boss

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

3 The record for no. of labour required to work at each machine for standard

production is maintained as per given format

4 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 ondaily/weekly basis with proper reasons

5 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.

6 The total area covered by the production floor with its utility including storage

for raw and finished goods is recorded in prescribed format.

B Machinery

Check that

1 Fixed Assets Register is maintained & updated in the prescribed format2 Proper coding for each capital asset

3 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 production

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

Unit Head

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



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d 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.

4 Capacity Analysis of machines is done in the prescribed format5 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.

6 Separate machine log book is maintained and updated

7 User manual/instruction kit of machines is displayed through charts and

hoardings at various places of factory.

8 Machine maintenance chart is displayed and updated for each machine near by

the machine itself.

9 Proper reporting of machine breakdown/shout down is done by production in

charge to unit head with valid reasons10 Shut down for more than 3 hours is reported to Unit Head which further

reports to higher management

C Raw material

Check that

1 Need assessment is done by the Store-keeper and the authorization is done by the

Production Manager/In charge.

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

3 The Quality Controller properly verifies the quality of the raw material by taking

samples and records the same in prescribed format.4 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.

5 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.

6 The issue of raw material for production is on the basis of production plan which

is based on demand & availability.

D PROCESS

Method of production followed by Company-

Job Method

Batch Method

Flow/Process Method

Uniform Method


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E Finished Goods

Check that

1 The production Manager verifies the final product according to the standardproduction plan and records the same with deviations, if any in respect of quality

and quantity both.

a Quantity Analysis is done by the Production Manager as set out in master chart

of the particular product.

b 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.

2 Samples taken for above purpose are recorded in the quality check register.

Verify the no. of samples taken per lot of production.

3 The finished goods inventory is maintained as per the Purchase and InventoryPolicy of the Company.

F Wastage

Check 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 informationLabour mistake

All other wastage which is not normal

2 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.

3 The monthly average wastage is properly calculated and if the wastage exceeds

the standard wastage than necessary steps to reduce the wastage are taken.


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V Sales Coordination


A Recording Sales Order

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

format

2 Check for hard copy of orders received through email

B Price List

1

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

2 The revision of price list is authorized and verified by the Unit Head and

informed to the higher management.

3 Revision of the prices is, as per industry & market factors, and informed to the

Sales Coordinator and Dealers/Distributors by the Unit Head

C Invoicing

1 Check that invoice is as per latest price list

2 Also check that it is according to the provisions of Excise, VAT/CST etc.

3 Credit terms & interest thereon & maximum & minimum credit period

4 Discount schemes

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

management

D Dispatch

1 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.



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E Verification of Finished Stock

1 Inventory of Finished Goods kept by Sales Coordinator

2 Physical Verification of Finished Goods on monthly basis by Manager

(Commercial) with proper recording of same in hard copy

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

ABC analysis.

4 Check for

Proper utilization of the space.

Proper coding

Precautionary measures

Arrangement on the basis of moveability.

F After Sales Service

1 If any after sales services are given by the unit, then the same shall be properly

recognized and recorded.

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

3 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.

G General

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

monthly basis


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VI Marketing Policy

Particulars Checked By

A Marketing Process

Verify that the company is following prescribed marketing procedure

Situation Analysis

Market Strategy

Market Mix Decision

Implementation

B Situation Analysis

Check that following procedure is properly followed

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

2 SWOT Analysis as per the prescribed format

3 Market research conducted by Marketing Manager and reporting same to

Production Manager/ Higher Management

4 The budget for market research decided by Unit Head with prior approval

of Higher Management

C Marketing Strategy


1 Product Life Cycle - stage

2 Pricing Decision

3 Market study of product - seasonal demand

4 Authorisation of extra discount

5 Prospective buyers- identified by proper coordination from dealers

6 Prospective marketing territory analysis- unit head

7 Verify the Costing method used by Unit Head

8 Sanction of discount by unit head

D Marketing Mix Decision


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

2 Verify the approval of higher management for introduction/exit of any

brand/product

3 Proper market research before launching new product

4 Market survey to find potential market/product

5 Competitors analysis to know market position

6 Packing - Packing Standards & its inclusion in cost

7 Pricing - Revision after considering Market Analysis, Raw Material Price

by Pricing Committee as per Marketing Policy

INTERNAL AUDIT C


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8 Distribution Channel (Place)/Placement:

i Channel-

Super Stockiest - Distributor - Wholesaler/Retailer

ii 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 format

iv Security / indemnity bond / guarantee signed by the dealer.

iv Regular follow up through marketing personnel

v Margin of distributor approved by Unit Head

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

9 Product Promotion

i Verify the approval of budget by the higher management after it is set by

Finance Manager & Unit Head

ii Also verify various schemes given to traders & consumers, set by

marketing manager for its authorisation

E Implementation & Control


1 Proper hierarchy for Marketing Control-

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

Representative

2 Sales Control-

i Check weekly/monthly/quarterly/annual sales targets set product wise in

the prescribed format

ii 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).

iii Monthly sales appraisal shall be done by the Marketing Manager for all the

SRs working under him in MSA (Monthly Sales Appraisal Form)

iv Check Turnover & Cash discounts as per applicable slabs


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Remarks

ECKLIST


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VII Tour & Travel Allowance


A Reimbursement Grades-

1 For Cities

A - All metropolitan & Capital cities

B - Cities with population < Rs 3Lakhs

C - Cities with population > Rs 3Lakhs

2 For Employees

Special Grade - Unit Head & Higher Management

Grade I - Regional Manager/Marketing Manager

Grade I - Functional Manager/Marketing Executive

B Reimbursement of Expenses

1 Verify that reimbursement is as per Tour & Travel Policy, and claims are

submitted with Tour Progamme approved by the Immediate Boss/Unit Head

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

3 Verify the correctness & authorisation of claims

4 Verify limit for advance against tour at Rs 5000 and its adjustment later

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

reimbursement bill.



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VIII Taxation


A Check for applicability of various Acts

1 Income Tax

2 VAT

3 CST

4 Excise Duty

5 Service Tax

B Payment

Check that

1 Payment is made before due date by Authorised person

2 Proper due date chart is maintained and displayed.

3 The Unit Head intimates the Asst Taxation Manager about the statutory

payments through mail/hard copy before 3 days of the due date.

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

5 Monthly consolidated report in prescribed format for all statutory payments is

forwarded to Asst Taxation Manager

6 All the financials are certified by Unit Head

C Filing & Checking of Returns

Check that

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

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

sent

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

ATM

4 The following returns are timely filed

i e TDS Return

ii Excise Return:

iii VAT Return:

iv Service tax Return:

v ESI & PF Return:



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D Scrutiny/ Audit objection / Query from Govt. Department

Check that

1 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.

2

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

3 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

E General

Check that

1 Any amendment in the applicable act is informed by the Asst Taxation Manager

to the Unit Head with the due date of applicability.

2 Unit Head follows the Notification / circular (Direct & Indirect tax) issued by

Govt. when informed by the Asst. taxation manager.

3 The following certified details are provided by Unit Head to ATM -

i Challan of tax payment

ii Ledger of the account.

iii Account statement of party / Purchase / sales etc.

iv Rate of TDS/ VAT/ CST/ Excise Duty / Service tax / PF / ESI

v Statement of VAT-7,VAT-8 & VAT-9

vi Details of statutory forms (VAT forms) used during the period.

vii Ledger of VAT / Excise / Service Tax

viii Return shall be Certified / verified by Unit head.

ix Return shall be authorized by taxation Dept.

x Return shall be filed on due date


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IX Finance

Particulars Checked By

A Stock

Check that

1 Age wise analysis of FG is done on monthly basis by the stores keeper and

authorised by Manager Commercial

2 Physical verification is done monthly by unit staff

3 Proper classification of Non Moving Stock is done by unit

4 Above records are verified by Manager Commercial and reported to Unit Head,

which further reports it to Finance Officer

B Cash

Check

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

surprise checks

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

Rs. 1 Lac respectively

3 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

4 Payments > 20000 are made through cheque

5 That Assistant finance manager's surprise physical verification of the cash, done

at-least twice a month

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

Unit Head

C Bank

Check that

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

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

authorisation

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

5The acknowledgement of the cheque received from the third party and thecheque issued to the third party

6 Proper recording of Bank Charges on monthly basis and informing the same to

Unit Head and AFM

INTERNAL AUDIT CHEC


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D Debtors

Check that

1 Age wise analysis on monthly basis is done by MC and the same is

reported to Unit Head who forward it to AFM2 Credit period & interest thereon as per Sales & Finance Policy

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

Unit Head

E Creditors

Check that

1 Payment is made through cheque only

2 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 Property

Check that1 Proper listing of documents is done in the prescribed format

2 All original & chain doc are kept in custody of Unit Head

3 Physical verification is done by person appointed by UH & Managerial

Personnel and reporting of same to AFM

4 Search Report is obtained at the time of purchase.

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

Dept.

G Investments

Check that1 Proper Investment Register for recording of investments and its verification by

UH is done

2 New investments are made only after proper approval by AFM

3 Proper investment note is prepared by the Finance Officer.

4 The original documents of the investments are secured by the Unit Head

H Loans & Advances

Check that

1 Proper requirement assessment is made by UH

2 Comparative Rate Analysis is done by UH, which is approved by the BOD

3 Proper documentation & A/cing is done by FO

4 Loan to Staff is as per Loan Policy

S


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Remarks

KLIST


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X Accounts


A Vouching

Check for

1 Separate voucher for expenses, sales (invoices) and

purchases.

2

Separate vouchers for cash, bank and other transactions.

3 Signature of Maker, Checker & Authoriser as per slab

4 Proper documentation of each voucher

5 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 Purchase

1 Following documents to be verified before revenue

purchases-i Price Quotationsii Purchase Indentsiii Purchase Ordersiv Goods Inward Note/ Gate Passv Raw Material Inspection Reportvi Taxation/ Duty Structure2

Authorisation as per slab



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3 Following documents to be verified before capital purchases-

i Price Quotationsii Purchase Indentsiii Purchase Orders

iv Goods Inward Note/ Gate Passv Taxation/ Duty Structure

D Payment To Employees

Following 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 Signature of the preparer and verifying authority on the

salary sheet.(As per HR Policy)

E Loans & Advances

Check fori Duly approved applicationii Terms of Loaniii Finance Policy

F Other Payments

Verify for1 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 Authorities

Check fori Due Dateii Workings by Functional Headsiii Proper Cheque/Challan detailsiv Authorisationv Mode of Payment


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H General1 Fixed Asset Register - Maintenance & Updation2 Physical verification on Quarterly basis - cross verified

internally by unit staff3 Information of the above is sent to AFM

4 Daily MIS shall be prepared on following basis :-ii Per Day Productioniii Per Day Salesv Daily Investment Detailsvi Daily Machine Breakdownvii Daily cash inflow outflow

5 The Daily MIS (Management Information Systems) shall be

sent to the FM by next day

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 Monthly details of Challan /returns submitted to the various

departments.

34 internal audit checklist

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