Escolar Documentos
Profissional Documentos
Cultura Documentos
Y/NO/NA Ref.
General
Purchase Organisation
From the system obtain details of the number of items purchased for
each of the following categories of items:
• Raw Materials/Specific Items (BOM)
• Essential/Regular Items
• Capital Items
Obtain a report of One-Time vendors from the system and inquire into
such cases
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For three months during the audit period, obtain the Production Plan
and the Material Requirement calculated based thereon (BOM related
and other consumables)
Review the derivation of the material requirement if any and reason
thereon
Ensure that maximum level, minimum level, re-order level, safety
stock level and lead time have all been defined for items as per SOP
Verify the actual materials purchased/ received against the
requirement
Inquire into variations
For the sample of three months, check the actual consumption against
the purchases. Check for any surplus items identified or items
indented with respect to the BOM
Ordering of Materials
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Emergency Purchases
Capital Purchases
Verify the Capital Pos raised during the Audit Period (within the
sample selected above)
Verify the approval process followed for the same
Verify the negotiation process followed for finalization of vendor
Verify the PO raised and the terms and conditions for the PO
Procurement of Services
Receipt of Goods
For the sample of Purchase Orders selected earlier, obtain the records
of Receipts. Check the receipts in detail and ensure that all necessary
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Short Deliveries
Job Workers
Obtain a list of all materials (along with value), which are sent to third
parties for processing.
From the above, select a judgmental sample of top 5 (high value)
dispatches of materials for job work during the audit period.
Review agreements with the job workers for adequacy and
completeness of the terms and conditions contained therein.
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Rejections
Obtain report of all rejections during the audit period, from the
system. Review the time taken in return of rejected material to the
vendor and inquire into cases of undue delay and reasons thereon
In case of part rejection, ensure deduction for the rejection from the
vendor’s invoice.
For rejections that are still lying in the unit at the time of checking,
physically inspect the same to ensure that these exist and are
segregated from usable materials.
Vendor Payments
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Select a sample of the last 5 MRR’s for March (XXXX) and the first 5
MRR’s for April (XXXX) and carry out a cut off test.
MIS
Notes:
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This checklist covers audit steps for Procurement and related audit areas which Internal Audit should verify as part
of the audit However, these audit steps should not be considered as an all inclusive list of audit steps to be
performed. The Internal Audit Team should amend these audit steps on the basis of information gathered and audit
observations made during the course of the audit.
Thus, in addition to the sample checking outlined above, additional specific reviews/ analysis may also be
undertaken or the sample size may be appropriately extended if and when circumstances so warrant.
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