INTERNAL AUDIT CHECKLIST

I General
Particulars Checked By Rearks
APeranent In!"rati"n
Nae "! Auditee #
$r%anisati"n Ty&e #
Peri"d under Audit #
Unit Head #
Audit Tea #
BD"cuentati"n
' Proper filing of all documents
( Proper coding of all files
) Proper indexation of all documents in each file
*
+
,
CSecretarial
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(
)
*
+
Original documents related to land, building, fixed asset and vehicle etc are
kept in the custody of the Unit Head.
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.
All important documents and correspondence are stored in soft format P!"#
$canned "ormat% with proper listing
All the secretarial documents and the documents related to &egistrar of
'ompanies &O'% are kept at the registered office of the 'ompany.
All types of resolutions to be passed are drafted by the $ecretarial department
only.
(he 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.
)t is the responsibility of the Unit Head to intimate all the concerned
departments 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.
+inutes book and statutory registers to be kept and updated by the $ecretarial
staff. at the registered office.
DSa!ety And Security -easures
'
(
) A list of phone numbers of all the employees is displayed at each desk.
* "irst aid kit is kept at easily accessible places
+
, $afety training to labour and official persons.
. ,mergency medical training to staff by doctors.
/
0
'1
ELe%al
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)
*
2$utd""r 3 4ehicle
'
( (he duty pass duly signed is listed and documented in a separate file
) $eparate log book is maintained for each vehicle, which is timely updated
* (he log book is checked, verified and signed by the Unit Head on daily basis
"ire safety measures such as fire extinguishers, fire alarms and sign boards for
-.O $+O/).01 2one are kept
!octor, "ire brigade, Police, bus and railway in3uiry and higher management
contact numbers are displayed at each desk.
All the drawers are properly locked and a bunch of duplicate keys is kept with
the unit head.
!etail of 4ork stations is displayed at each desk in a proper format so that the
complete information about the employees5 name 6 designation can be shown.
Hardware security# no person is allowed to carry the system or take files from
the system with prior permission of )mmediate 7oss.
All the important files*documents kept in soft copy is secured through uni3ue
file password.
All the original documents related to )ntellectual Property &ights )P&% i.e.
(rademarks, copyrights, patents, )$O certificates. are kept with the Unit Head.
(he original documents, notices etc filed by the legal advisor * advocate are
kept by the Unit Head.
(he proceedings of the same are summari2ed by the Unit Head with proper
attachments and account statements.
8isting and documentation of legal and )P&s files is done as per points
mentioned under Heading# !O'U+,.(A()O..
Any employee leaving the office during the official hours shall fill the duty
pass and get it signed by the authorised person
+ Any employee using his*her own vehicle for official purpose is provided with
the conveyance allowance as per the limits decided by the Unit Head.
INTERNAL AUDIT CHECKLIST
II Huan Res"urce
Particulars Checked By Rearks
ARE5UIRE-ENT ASSESS-ENT
.o. of ,xecutive re3uired
/ind of ,xecutive re3uired
9ualification re3uired
,xperience
$alary $lab.
BInter6ie7
'
One "unctional Head : &espective departmental head.
One Higher official : Unit Head
One H& +anager *,xecutive
( A proper form provided by the H& ,xecutive is duly filled by the candidates.
)
CLetter $! $!!er
Offer letter is given to the selected candidates within ; days for their acceptance
DA&&"intent
'heck that
' Appointment letter is given within < days of =oining.
( Personal data form*$ervice book is filled within < days of =oining.
) (erms and conditions associated with appointment presents a clear picture.
* 'omplete code of conduct is provided to the candidate who thoroughly reads it
+ 'ode of 'onduct shall be updated timely
'heck that details relating to manpower re3uirement is informed to the
management ->month1 well in advance.#
'heck that interview is taken by a committee appointed for the purpose,
comprised of minimum three members#
(he interview is conducted at Unit level for first phase and the short listed
candidates are interviewed by the higher management for final phase.
ETrainin% 3 De6el"&ent
'
( 8ock#in#period of one year on completion of probation period.
)
2 Le%al C"&liances Relatin% T" Hr#
'
8 (he Apprentices Act,>?@>
8 (he ,mployeeAs Provident "und and +iscellaneous Provisions Act,>?B;
8 (he ,mployee $tate )nsurance Act,>?CD
8 (he "actories Act,>?CD
8 (he +inimum 4ages Act,>?CD
8 (he Payment of 7onus Act,>?@B
8 (he Payment of 0ratuity Act,>?E;
8 (he Payment of 4ages Act, >?<@
8 (he (rade Union Act,>?;@
8 (he 4orkmenAs 'ompensation Act,>?;<
8 "actory and 7oilers Act
8 (he )ndustrial !isputes Act, >?CE
8 'ontract 8abour &egulation and Abolition% Act, >?EF
8 (he )ndustrial ,mployment $tanding Orders% Act, >?C@
8 Air Prevention and 'ontrol of Pollution% Act, >?D>
8 4ater Prevention and 'ontrol of Pollution% Act, >?EC
8 (he ,nvironment Protection% Act, >?D@
8 .oise Pollution &egulation and 'ontrol% &ules,;FFF
8 (he Personal )n=uries 'ompensation )nsurance % Act, >?@<
(
)
Probation period of F#< months is taken into consideration depending upon the
work re3uirements.
Performance appraisal during probation period and thereafter is done by the
immediate boss and H& ,xecutive and then the same is reported to the higher
management.
'heck for Applicability of various acts and its due compliance by H&
,xecutive#
All the re3uired registers and documents as per above applicable acts is
maintained.
Garious challans are paid on time i.e., 'hallan for P" has to be paid by >Bth of
next month and 'hallan for ,$) has to be paid by ;Fth of next month%
*

GAccidents 3 Causalities
' &eport of the accident is prepared on the same day in the prescribed format
( 8egal Provisions applicable are complied with.
)
HAttendance
' !aily attendance is taken either in morning or evening in Attendance &egister
( $eparate register is maintained for daily workers 6 staff on probation
(
)
I Salary And 9a%es Pr"cedure
'heck for#
' Pay#scale and salary structure of the labour 6 staff.
(
) Overtime 6 )dle time workings
* $alary payment by >Fth of next month.
+ Proper workings of salary sheet and its authorisation thereon
: Lea6e Pr"cedure
KTER-INATI$N;RESIGNATI$N
LGRIE4ANCE HANDLING
'onsolidated H& records are sent to the H& head for the group including
details about all the compliances made by the 'ompany by ;B
th
of next month
in the prescribed format.
"acility of free medical check#ups is provided to the employees at regular
intervals.
(his register is checked and signed by two ,xecutive i.e. by H& ,xecutive and
Unit head%
0ate pass register is maintained. ,ntries relating to visitors is made in the
register and at the end of the day it is verified by one authority.
'alculations relating to allowances, deductions, per3uisites etc according to the
provisions.
Garious leaves taken by employees are classified in Paid, 'asual, $ick and are
allowed as per the H& Policy
Proper notice or salary in lie thereof before resignation*termination as per H&
Policy
'
( &eporting is done both in verbal and written format.
Any grievance relating to workplace is informed to immediate bosses or the
concerned unit head who further reports it to the higher management.
-E-PL$<EE RECREATI$NAL P$LIC<
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(
)
*
+
NREI-BURSE-ENT $2 E=PENSES
After completion of >D months of service, promotion or hike in salary on the
basis of performance appraisal and as per management decision.
7onus amount would be calculated*decided depending upon the employee
performance and at the discretion of management.
,mployees should submit $elf Appraisal Performance &eport on 3uarterly
basis.
,mployee birthdays and anniversaries is given due consideration one 0reeting
card should is sent on behalf of the 'ompany.
A suggestion or a compliant box is kept and it is the responsibility of the H&
!epartment to check the same and reporting of the same to the unit head.
,xpenses are reimbursed to the employees incurred for official purposes as per
the decision of management committee.
INTERNAL AUDIT CHECKLIST
III Purchase 3 In6ent"ry -ana%eent
Particulars Checked By
A-aterial C"ntr"l
'heck proper records for#
' Availability of materials H7
( 'ontrol over the investment in material H7
) &easonable Prices H7
* 4astage 'ontrol +$*H7
+ 'ontrol over the spoilage and obsolescence +$*H7
BPurchase
' A+*H7
( All the purchases are properly authorised as per the policy
Upto &s BFFF*# Purchase +anager
&evenue purchase I &s BFFF*# Unit Head
'apital purchase I &s ;BFFF*# 7O!
CRe>uireents
'
D4end"r Re%istrati"n
'
( 'heck proper maintenance by Purchase manager of master list of the suppliers
ESelecti"n ; Assessent "! the su&&liers
' 'heck for following aspects while selection of suppliers#
9uality
Price
(erms * 'onditions availability etc.%
(ransportation 'ost
!iscount
'redit "acilities
C"ncerned
Pers"n
(here should be at least two personnel for the purchase department with rights
and duties as per the Purchase Policy
&e3uirement of the $tores !epartment 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 )ndent in ; copies
(he Purchase department registers the potential suppliers according to the
re3uired items in the prescribed format.
(
)
)f any other method is followed, mention it#
* Proper analysis of the 3uotations invited in the prescribed format
+
, !ocumentation of the analysis summary sheet with the PO
2 E?ecuti"n "! Eer%ency Purchase
' 'heck for following points#
&easons * 'onditions
(ime 7asis
Price
!ealers
Others : 'redit (erms, (ransportation, (axation etc.
( "inalised by a 'ommittee comprising of#
Purchase Officer
"inance * Accounts Officer
&espective !epartment Head

GPurchase $rder
' PO is prepared in ; copies in the prescribed manner and is duly authorised
( &egular follow up of PO for timely receipt of materials
H-aster List !"r Purchase
I Recei6in% and Ins&ecti"n "! the -aterial @
' All supplies at receiving department.
( 'heck against Purchase Orders.
) )nspection of material
* Proper delivery of goods to the concerned department * store.
+ Proper authori2ation by the receiving authority.
,
"inal selection is vetted by a (eam consisting of Purchase +anager, respective
departmental head, finance * accounts person and if re3uired the technical
person of the company.
(ender is raised in the specified format for specific purchases along with terms
6 conditions of the company
Proper explanatory note is prepared to state the reason for selection of
particular supplier by the selection committee
'heck proper maintenance by Purchase manager of following master list of the
suppliers
All returns, shortage, re=ection 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.
.
/ Purchase orders file should be maintained properly.
0
'1 'hecking 3uality of the material received by the 9uality control department.
: St"res;In6ent"ry -ana%eent
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(
)
*
+ $eparate authority for purchase and stock taking.
, 'ontinuous stock verification.
.
/
0

KClassi!icati"n 3 C"din% "! -aterial
'
( Authentic code no. is allotted for proper distinction * description
L-aterial C"ntr"l Syste @
-In6ent"ry Rec"rds@
' !aily Updation of $tores 8edger
(
) )ssue of material from stores in proper format
*
+ $crap * wastage should be recorded and reported in a proper format
0oods &eceipts .otes 0&.% should be endorsed to accounts and sent to
purchase department.
&eceiving, unloading and unpacking the material delivered by the suppliers
under delivery challans* )nvoices.
Proper counting of the material received and recording and classification of the
same.
After receiving of the re3uired material the invoice should be supported with
the +aterial )nspection &eport and sent to the accounts department.
Proper authori2ation and verification of the +)& by the purchase manager as
well as the higher authority.
'ontrol measures i.e. stock taking 6 supervision of the material received
should be done on periodic basis +onthly * fortnightly * weekly%.
$hortage*excess of the material is reported to the purchase as well as the
production department.
Any discrepancies * damages must be recorded and reported to the concerned
authority.
(here should be a proper control over the $crap * 4astages * !amages*
!efectives etc.
Proper classification as construction material, consumable stores, spare parts,
tools etc.
Analysis of +aterial * inventory according to their value, movement, 3uantity
i.e.
J A7' High K +edium K 8ow value %
J "$. "ast K $low K .on moving %
'heck $tores 8edger for proper stock keeping, recording material receipts,
issues and balances
)n case of material transfer from one =ob to another =ob, the material transfer
note will be prepared in ; copies
INTERNAL AUDIT CHECKLIST
Rearks
(o be followed from F>#F>#>F
IBFFF# PO to be made from F>#F>#>F
INTERNAL AUDIT CHECKLIST
I4Pr"ducti"n
Particulars Checked By Rearks
AGeneral
'heck that
'
( Proper listing of products with their respective codes and brand names
)
*
+
,
B-achinery
'heck that
' "ixed Assets &egister is maintained 6 updated in the prescribed format
( Proper coding for each capital asset
) Ne7 -achinery#
a (he re3uirement of new machines can arise due to following reasonsK
)ncrease in demand
'hange in technology
'hange in product line
)ncrease in production
A
c
Proper reporting is done by assistants to respective division in charge 6 further
reporting by in charge to immediate boss
(he record for no. of labour re3uired to work at each machine for standard
production is maintained as per given format
'alculation of idle time is done on percentage basis and in case the idle time
exceeds ;BL the reporting of the same to the higher management on
daily*weekly basis with proper reasons
'alculation of overtime and recording of the same is done by the Production
+anger and he further reports it monthly to the Unit head and the H&
coordinator of the unit.
(he total area covered by the production floor with its utility including storage
for raw and finished goods is recorded in prescribed format.
Proper assessment is done by Production +anager*)n charge approved by the
Unit Head
&e3uisition to the purchase department is sent for further processing as per
purchase and inventory policy of the 'ompany based on 9uotation Analysis.
d
* 'apacity Analysis of machines is done in the prescribed format
+
, $eparate machine log book is maintained and updated
.
/
0
'1
CRa7 aterial
'heck that
'
( Purchase of raw material is done as per the Purchase Policy
)
*
+
,
DPR$CESS
+ethod of production followed by 'ompany#
Hob +ethod
7atch +ethod
"low*Process +ethod
(he new machines is properly installed in supervision of the (echnical person
and the Unit Head and the reporting of the same is done to the higher
management after installation.
(he 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.
User manual*instruction kit of machines is displayed through charts and
hoardings at various places of factory.
+achine maintenance chart is displayed and updated for each machine near by
the machine itself.
Proper reporting of machine breakdown*shout down is done by production in
charge to unit head with valid reasons
$hut down for "re than ) h"urs is reported to Unit Head which further
reports to higher management
.eed assessment is done by the $tore#keeper and the authori2ation is done by
the Production +anager*)n charge.
(he 9uality 'ontroller properly verifies the 3uality of the raw material by
taking samples and records the same in prescribed format.
)n case the 3uality of the raw material is not of good 3uality, the reporting of
the same is done to the Unit Head and higher +anagement .(he whole lot of
raw material is stored separately and +aterial &eturn "orm is filled by the
$tore keeper, duly verified by the 9uality 'ontroller.
(he raw material to the production is issued by the storekeeper*store in#charge
after signing the issue slip. (he production in#charge give its receiving through
its initials on the issue slip after properly weighing the material issued.
(he issue of raw material for production is on the basis of production plan
which is based on demand 6 availability.
Uniform +ethod

E2inished G""ds
'heck that
'
a
A
(
)
2 9asta%e
'heck that
' Proper classification of wastage is done into .ormal 6 Abnormal.
( 'lassification as abnormal is done if wastage is occurred due to the followingK
,rror in machine
&aw material 3uality issues
Power cut with prior information
8abour mistake
All other wastage which is not normal
(
)
(he production +anager verifies the final product according to the standard
production plan and records the same with deviations, if any in respect of
3uality and 3uantity both.
9uantity Analysis is done by the Production +anager as set out in master chart
of the particular product.
9uality Analysis is done by the 9uality 'ontroller for the finished goods. (he
Master Card for the 3uality check is pasted at each such place where the
production process is carried on.
$amples taken for above purpose are recorded in the 3uality check register.
Gerify the no. of samples taken per lot of production.
(he finished goods inventory is maintained as per the Purchase and )nventory
Policy of the 'ompany.
(he wastage is properly recorded in the wastage register*sheet on daily basis
along with proper reasons and it is shown in the production +)$ in the
prescribed format.
(he monthly average wastage is properly calculated and if the wastage exceeds
the standard wastage than necessary steps to reduce the wastage are taken.
INTERNAL AUDIT CHECKLIST
4Sales C""rdinati"n
Particulars Checked By
ARec"rdin% Sales $rder
'
( 'heck for hard copy of orders received through email
BPrice List
'
'omplete 6 updated price list for each product is kept with $ales 'oordinator
(
)
CIn6"icin%
' 'heck that invoice is as per latest price list
( Also check that it is according to the provisions of ,xcise, GA(*'$( etc.
) 'redit terms 6 interest thereon 6 maximum 6 minimum credit period
* !iscount schemes
+
DDis&atch
' 'heck that goods are removed as per applicable ,xcise &ules.
( Also check $ales coordinator5s responsibility that#
8 (he goods are properly checked as per sales order received.
8 (he duties and taxes are properly paid * charged.
8 (he transportation cost is accounted
8 Proper weight * measurement done.
8 0ate pass * Outward note prepared.
All the orders received are recorded in $ales Order &egister in the prescribed
format
(he revision of price list is authori2ed and verified by the Unit Head and
informed to the higher management.
&evision of the prices is, as per industry 6 market factors, and informed to the
$ales 'oordinator and !ealers*!istributors by the Unit Head
'heck for any changes in the invoicing software and its reporting to higher
management
E4eri!icati"n "! 2inished St"ck
' )nventory of "inished 0oods kept by $ales 'oordinator
(
)
* 'heck for
8 Proper utili2ation of the space.
8 Proper coding
8 Precautionary measures
8 Arrangement on the basis of moveability.
2 A!ter Sales Ser6ice
'
( After sales 3ueries shall be handled by the sales coordinator.
)
GGeneral
Physical Gerification of "inished 0oods on monthly basis by +anager
'ommercial% with proper recording of same in hard copy
"urther, bifurcated as per the moveability and the value of the same .i.e. "$.,
A7' analysis.
)f any after sales services are given by the unit, then the same shall be properly
recogni2ed and recorded.
)f action is taken for solving the 3uery then it shall be as per the rules of the
unit and shall be informed to the Unit Head.
Gerify age#wise analysis of debtors done by the +anager 'ommercial on
monthly basis
INTERNAL AUDIT CHECKLIST
Rearks
INTERNAL AUDIT CHECKLIST
4I -arketin% P"licy
Particulars Checked By Rearks
A-arketin% Pr"cess
Gerify that the company is following prescribed marketing procedure
8 $ituation Analysis
8 +arket $trategy
8 +arket +ix !ecision
8 )mplementation
BSituati"n Analysis
'heck that following procedure is properly followed
' )dentifying customer needs 6 company5s resources to fulfill those needs
( $4O( Analysis as per the prescribed format
)
*
C-arketin% Strate%y
'heck that following procedure is properly followed
' Product 8ife 'ycle # stage
( Pricing !ecision
) +arket study of product # seasonal demand
* Authorisation of extra discount
+ Prospective buyers# identified by proper coordination from dealers
, Prospective marketing territory analysis# unit head
. Gerify the 'osting method used by Unit Head
/ $anction of discount by unit head
D-arketin% -i? Decisi"n
'heck that following procedure is properly followed
' Proper classification of present brands as per si2e, 3uality etc
(
) Proper market research before launching new product
* +arket survey to find potential market*product
+ 'ompetitors analysis to know market position
, Packing # Packing $tandards 6 its inclusion in cost
.
+arket research conducted by +arketing +anager and reporting same to
Production +anager* Higher +anagement
(he budget for market research decided by Unit Head with prior approval
of Higher +anagement
Gerify the approval of higher management for introduction*exit of any
brand*product
Pricing # &evision after considering +arket Analysis, &aw +aterial Price
by Pricing 'ommittee as per +arketing Policy
/ !istribution 'hannel Place%*PlacementK
i 'hannel#
$uper $tockiest # !istributor # 4holesaler*&etailer
ii Gerify the selection procedure as per respective policy#
8 (he "inancial Position of the dealer
8 0oodwill in the market
8 'redit 4orthiness
8 Past &elations * records
8 +arket Accessibility etc.
iii Appointment after proper application in the prescribed format
i6 $ecurity * indemnity bond * guarantee signed by the dealer.
i6 &egular follow up through marketing personnel
6 +argin of distributor approved by Unit Head
6i &eason for $ales &eturn# Payment or 9uality sent to higher management
0 Product Promotion
i
ii
EI&leentati"n 3 C"ntr"l
'heck that following procedure is properly followed
' Proper hierarchy for +arketing 'ontrol#
( $ales 'ontrol#
i
ii
iii
i6 'heck (urnover 6 'ash discounts as per applicable slabs
Gerify the approval of budget by the higher management after it is set by
"inance +anager 6 Unit Head
Also verify various schemes given to traders 6 consumers, set by
marketing manager for its authorisation
7O! # +anagerial Personnel # Unit Head # +arketing +anager # $ales
&epresentative
'heck weekly*monthly*3uarterly*annual sales targets set product wise in
the prescribed format
&eporting of the $&s to +arketing +anager directly on weekly basis,
having complete reporting of each $& separately for every product
individually, comprising of daily detail in the form of !$& !aily $ales
&eport%.
+onthly sales appraisal shall be done by the +arketing +anager for all
the $&s working under him in +$A +onthly $ales Appraisal "orm%
INTERNAL AUDIT CHECKLIST
4II T"ur 3 Tra6el All"7ance
Particulars Checked By Rearks
AReiAurseent Grades#
' "or 'ities
A # All metropolitan 6 'apital cities
7 # 'ities with population M &s <8akhs
' # 'ities with population I &s <8akhs
( "or ,mployees
$pecial 0rade # Unit Head 6 Higher +anagement
0rade ) # &egional +anager*+arketing +anager
0rade ) # "unctional +anager*+arketing ,xecutive
BReiAurseent "! E?&enses
'
( Other reimbursement are as per discretion of Unit Head with proper =ustification
) Gerify the correctness 6 authorisation of claims
* Gerify limit for advance against tour at &s BFFF and its ad=ustment later
+
Gerify that reimbursement is as per (our 6 (ravel Policy, and claims are
submitted with (our Progamme approved by the )mmediate 7oss*Unit Head
Gerify proper supportings i.e. travel tickets, hotel bills etc with the travel expense
reimbursement bill.
INTERNAL AUDIT CHECKLIST
4III Ta?ati"n
Particulars Checked By Rearks
ACheck !"r a&&licaAility "! 6ari"us Acts
' )ncome (ax
( GA(
) '$(
* ,xcise !uty
+ $ervice (ax
BPayent
'heck that
' Payment is made before due date by Authorised person
( Proper due date chart is maintained and displayed.
)
* 'opy of challans is sent to Asst (axation +anager by >Fth of next month
+
, All the financials are certified by Unit Head
C2ilin% 3 Checkin% "! Returns
'heck that
1 All the challans and returns are submitted directly by the unit.
2
3
4 (he following returns are timely filed
i e (!$ &eturn
ii ,xcise &eturnK
iii GA( &eturnK
iv $ervice tax &eturnK
v ,$) 6 P" &eturnK
(he Unit Head intimates the Asst (axation +anager about the statutory
payments through mail*hard copy before < days of the due date.
+onthly consolidated report in prescribed format for all statutory payments is
forwarded to Asst (axation +anager
(he same is verified by Asst. (axation +anager before filing and confirmation
sent
All legal compliances are fulfilled by Unit Head and the same is informed to
A(+
DScrutiny; Audit "ABecti"n ; 5uery !r" G"6tC De&artent
'heck that
1
2
Asst (axation +anager checks the status of scrutiny* audit ob=ection* 3uery etc.
3
EGeneral
'heck that
1
2
3 (he following certified details are provided by Unit Head to A(+ #
i 'hallan of tax payment
ii 8edger of the account.
iii Account statement of party * Purchase * sales etc.
iv &ate of (!$* GA(* '$(* ,xcise !uty * $ervice tax * P" * ,$)
v $tatement of GA(#E,GA(#D 6 GA(#?
vi !etails of statutory forms GA( forms% used during the period.
vii 8edger of GA( * ,xcise * $ervice (ax
viii &eturn shall be 'ertified * verified by Unit head.
ix &eturn shall be authori2ed by taxation !ept.
x &eturn shall be filed on due date
(he information of the notice received by the unit from the department i.e.
)ncome (ax, $ales (ax etc.% is sent to the Asst (axation +anager by the Unit
Head.
Asst (axation +anager prepares the reply of the order * 3uery received by
gathering information re3uirements from Unit Head and send a copy to Unit
Head
Any amendment in the applicable act is informed by the Asst (axation
+anager to the Unit Head with the due date of applicability.
Unit Head follows the .otification * circular !irect 6 )ndirect tax% issued by
0ovt. when informed by the Asst. taxation manager.
INTERNAL AUDIT CHECKLIST
I=2inance
Particulars Checked By Rearks
ASt"ck
'heck that
'
( Physical verification is done monthly by unit staff
) Proper classification of .on +oving $tock is done by unit
*
BCash
'heck
'
2
3
4 Payments I ;FFFF are made through che3ue
5
,
CBank
'heck that
1
+inimum bank balance at any time is &s BFFF
2 7alance above a specified limit is invested in "! by approval of A"+
3
4 (he 'he3ue !etails &egister maintained by Ass. A*cs and vetted by Unit Head
5
6
Age wise analysis of "0 is done on monthly basis by the stores keeper and
authorised by +anager 'ommercial
Above records are verified by +anager 'ommercial and reported to Unit Head,
which further reports it to "inance Officer
Physical cash in custody of Accounts assistant at least once a month, prefer
surprise checks
(he minimum 6 maximum cash balance at any point of time is &s.>F,FFF and
&s. > 8ac respectively
(hat physical cash is verified by person other than the person in who5s custody
cash is kept, which is further approved by unit Head
(hat Assistant finance manager5s surprise physical verification of the cash,
done at#least twice a month
'ash 4ithdrawal .ote for withdrawal of cash from bank which is authorised
by Unit Head
+onthly 7&$ is prepared by +ang. 'omm and is sent to A"+ after Unit
Head5s authorisation
(he acknowledgement of the che3ue received from the third party and the
che3ue issued to the third party
Proper recording of 7ank 'harges on monthly basis and informing the same to
Unit Head and A"+
DDeAt"rs
'heck that
1
2 'redit period 6 interest thereon as per $ales 6 "inance Policy
3
ECredit"rs
'heck that
1 Payment is made through che3ue only
2 +aximum credit period of <F days or discount, as the case may be is availed
3 (he 'reditors (urnover &atio is calculated on monthly basis
2 Real State Pr"&erty
'heck that
1 Proper listing of documents is done in the prescribed format
2 All original 6 chain doc are kept in custody of Unit Head
3
4 $earch &eport is obtained at the time of purchase.
5
GIn6estents
'heck that
1
2 .ew investments are made only after proper approval by A"+
3 Proper investment note is prepared by the "inance Officer.
4 (he original documents of the investments are secured by the Unit Head
HL"ans 3 Ad6ances
'heck that
1 Proper re3uirement assessment is made by UH
2 'omparative &ate Analysis is done by UH, which is approved by the 7O!
3 Proper documentation 6 A*cing is done by "O
4 8oan to $taff is as per 8oan Policy
Age wise analysis on monthly basis is done by +' and the same is
reported to Unit Head who forward it to A"+
9uartly balance confirmation 6 turnover ratio is done by +' 6 reported to
Unit Head
Physical verification is done by person appointed by UH 6 +anagerial
Personnel and reporting of same to A"+
)nsurance of Property# documented with Unit Head, 'opy is kept with A*cs
!ept.
Proper )nvestment &egister for recording of investments and its verification by
UH is done
INTERNAL AUDIT CHECKLIST
=Acc"unts
Particulars Checked By Rearks
A4"uchin%
'heck for
'
(
Separate vouchers for cash, bank and other transactions.
) Signature of Maker, Checker & Authoriser as per slab
* Proper documentation of each voucher
+ Proper verification each voucher before entry
BSales
1 Folloing documents to be verified before invoicing!
i Previous Accounts status of "ebtors
ii Status of finished goods
iii Sales #rder $eceived
iv %oods #utard &ote' %ate Pass
v Sale Price as per the current price list
vi "iscount as per scheme
vii Proper "uty ' (a) Structure
2 Sales bill are to verified before dispatch by *)cise personnel
CPurchase
1
i Price +uotations
ii Purchase ,ndents
iii Purchase #rders
iv %oods ,nard &ote' %ate Pass
v $a Material ,nspection $eport
vi (a)ation' "uty Structure
2 Authorisation as per slab
Separate voucher for e)penses, sales -invoices. and
purchases.
Folloing documents to be verified before revenue
purchases!
3 Folloing documents to be verified before capital purchases!
i Price +uotations
ii Purchase ,ndents
iii Purchase #rders
iv %oods ,nard &ote' %ate Pass
v (a)ation' "uty Structure
DPayent T" E&l"yees
Folloing documents to be verified before payment
i Salary Slab -As per /$ Policy.
ii Proper calculation of deductions 'alloances' per0uisites.
iii Calculation of PF
iv 1eave taken by employee -As per /$ Policy.
v 1oans and Advances given to employees
vi
EL"ans 3 Ad6ances
Check for
i "uly approved application
ii (erms of 1oan
iii Finance Policy
2$ther Payents
Gerify for
1 $evenue Stamp for cash payment 2 $s 3444
2 Payment 2 $s 54444 through che0ue
3 Payment to creditors
i (erms of payment
ii Mode of Payment
iii Authorisation
GPayent t" G"6t Auth"rities
Check for
i "ue "ate
ii 6orkings by Functional /eads
iii Proper Che0ue'Challan details
iv Authorisation
v Mode of Payment
Signature of the preparer and verifying authority on the salary
sheet.-As per /$ Policy.
H%eneral
1 Fi)ed Asset $egister ! Maintenance & 7pdation
2
3 ,nformation of the above is sent to AFM
4 "aily M,S shall be prepared on folloing basis 8!
ii Per "ay Production
iii Per "ay Sales
v "aily ,nvestment "etails
vi "aily Machine 9reakdon
vii "aily cash inflo : outflo
5
6 Monthly Consolidated M,S to AFM!
i Monthly production "etail of the unit
ii Monthly turnover of the unit
iii Monthly bank reconciliation detail
iv Monthly fund flo
v
Physical verification on +uarterly basis ! cross verified
internally by unit staff
(he "aily M,S -Management ,nformation Systems. shall be
sent to the FM by ne)t day
Monthly details of Challan 'returns submitted to the various
departments.