BYOD SL PVT LIMITED

INTERNAL AUDIT WORK PLAN FOR THE PERIOD ENDED 31ST MARCH 2009

SALES, DEBTORS AND COLLECTION PROCEDURE 01. 02. 03. 04. Check the serial order of sales invoices. Check whether all invoices have been duly authorized by relevant officials. Check the serial continuity of all receipts. Check the accuracy of credit notes with reference to followings. a. Check the sales return with reference to manual Advise of Return and Sales Return Advice. b. Stock outs situations with reference to Issue Orders. Check Debit Notes with source documents such as price list etc. Check the serial continuity of debit notes and credit notes. Check whether all debit notes and credit notes have been duly authorized by relevant officials. Check whether the reconciliation has been prepared with information such as Sales, Collections, returned cheques, sales return, discounts etc. Check reasons for disputing invoices and obtain the justifications for bad debts provisions. Check whether Debtors Control Account is in agreement with the individual debtors ledger. Obtain the confirmations from randomly selected customers regarding their outstanding balances, reasons for not settling the dues on time and the payment plan for outstanding dues. Check whether debtors ledger has been updated on time with all debit and credit notes, settlement etc. Reconcile the advances obtained from customers and check whether Advance Register is properly maintained. Check whether Debtors are being followed up / Are they within the Credit limit / What action taken on doubtful debts / Legal cases are being followed up / outcome of the cases / Bad Debts collection status Check whether proper Credit policies in place & Debtors are managed accordingly

05. 06. 07. 08. 09. 10. 11.

12. 13. 14.

15.

16. 17.

Debtors Control Accounts are properly maintained & updated and all the Invoices are included Return cheques outstanding should be collected within 15 days and PD cheques are properly recorded and banked on time.

STOCK CONTROL PROCEDURE 01. 02. 03. 04. 05. 06. 07. 08. Check whether GRNs have been raised for all imports, local purchases and receipts from Pure Metals. Check whether Bin Cards have been updated properly by cross checking with import packing list, purchase order and Pure Metals Issue Order. Check whether all FGTNs from Galvano Factory have been posted to bin cards. Check whether the serial continuity has been maintained in FGTNs and GRNs. Check whether all sales returns have been duly authorized. Check whether bin cards are maintained for each and every item. Check whether physical balances and bin card balances are in agreement for all the stocks. Reconcile the opening and closing stocks with stock receipts, stock issues and stock returns.

RECEIPT PROCEDURE 01. 02. 03. 04. 05. 06. 07. Check the serial order of cash and cheque receipts. Check whether all collections have been properly entered to cash book without any delay. Check whether the Debtors Ledger has been properly updated with collections received from customers. Perform physical cash count and notify if there is any deficiency. Check whether a receipt has been raised for each and every collection received by customers. Check whether the Bank Reconciliation Statements have been prepared correctly and timely manner. Check whether any unusual transactions and un identified deposits appeared in Bank Reconciliations and obtain the justifications.

CASH CONTROL 01. 02. 03. 04 Check the Petty Cash Imprest is maintained properly and all the Petty Cash Vouchers are authorized Check whether cash received are banked on the following day as per the Company Policy Check Cash Flow forecasting is realistic & managed positive throughout Make sure Post dated cheques are banked on due date and Returned cheques are re deposited / Cash collected

CHEQUE PAYMENT PROCEDURE 01. Check the procedure for initiating Fund Requisitions. a. Check whether all the supporting documents such as invoices or any other acceptable documents have been attached to the Fund Requisition. b. Check whether the Fund Requisition and supporting documents have been properly checked by the Payment Executive. Check the payment procedure. a. Check the accuracy of the payment voucher prepared by the Payment Executive. b. Check the serial continuity of the payment vouchers. c. Check the payment voucher with the computer-generated payment summary. d. Check whether the payment vouchers have been approved by MFA. Check whether the recipient signature has been obtained in the payment voucher prior to handing over the cheque

02.

03.

PETTY CASH PAYMENT PROCEDURE 01. 02. Check whether the petty cash limit is properly maintained. Check the procedures for initiating I O U is properly followed. e. Check whether the Sectional Head initiates the I O U and recommended by the respective Divisional Manager. b. Check whether the approval is obtained from relevant authorities. c. Check whether the Petty Cashier obtains the recipient signature when the payment is made. d. Check the serial continuity of the I O U Register. Check the procedure for settlement of I O U. a. Check whether the I O U is settled within 3 days by the recipient. b. Check whether the Divisional Manager has certified the Petty Cash Voucher (PCV) prepared by the recipient. c. Check whether all the supporting documents attached to the PCV. d. Check whether the certified PCV has been approved by the responsible personnel. e. Check whether the Petty Cashier has entered the PCV number in the I O U Register and cancelled the relevant I O U.

03.

04.

Check the procedure for Reimbursement of Petty Cash. a. Check whether the Petty Cashier has arranged the PCVs in serial order and check the serial continuity. b. Check the accuracy of Petty Cash Reimbursement Statement (PCRS) prepared by the petty cashier. c. Check whether the Fund Requisition (FR) has been prepared for the exact amount of the PCRS. d. Check whether the payment division has checked PCRS with the PCV and prepared the Payment Voucher (PV) and the cheque and forwarded to MFA for his certification. e. Check whether the proper approval has been obtained for the payment.

COMPUTER SYSTEM AUDIT 1. 2. 3. 4 Study the system in which the Accounting Reports are generated Check whether all computers and the software are in order Ensure Security / Access Control / Disaster Recovery / Back ups Do an Audit Trial

5. Check the Accuracy of Management Reports generated through the computer system. PROPERTY PLANT AND EQUIPMENT/FIXED ASSETS 1. Check the Fixed Assets Register on a periodic basis. 2. Check whether Additions & Disposals of Assets properly authorized and accounted 3. Check Fixed Assets are properly identified location wise 4. Do an Audit on the Fixed Assets Register 5. Assets are correctly depreciated 6. Check whether relevant Accounting Standards have been followed when recognizing Fixed Assets. TAXATION 1. Taxes are paid on time. No penalties are imposed 2. Whether Over / under payment of Tax 3. Check whether the company is in compliance with the tax regulations and other related laws.

COSTING
1. 2. 3. Ensure GP is managed within the standard limit Ensure Shipment wise Pre / Post Costing is done for each shipment Ensure the Shipment wise GP margin complies with the Company Standard Avg

4. Ensure regular update of Cost Price with GP details 5. Check with regard to Discount & Pricing as per the Company Policy CREDITORS MANAGEMENT 1. Local creditors are settled on time 2. Monitor Credit Control Policies of the Company 3. Credit Purchases are in accordance with the Company Policy 4. Creditors Control Accounts are properly maintained & updated Balance are reconciled 5. Check local procurement as per the Company Policy LC FACILITIES AND SETTLEMENTS
1. 2. 3. Study the available LC Facilities and are managed properly Check whether CUS bank facility management paper is maintained Check whether Import Bills are settled on time

4. Check whether any Overdue amounts to be paid FINANCIAL STATEMENT ANALYSIS AND RISK ASSESMENT ANALYSIS 1. Comprehensive Ratio Analysis covering following ratios. a. b. c. d. Profitability Ratios Working Capital Management Ratios Gearing and Equity Ratios Activity Ratios

BYOD SL PVT LIMITED

INTERNAL AUDIT WORK PLAN FOR THE PERIOD ENDED 31ST MARCH 2009

Prepared by GFEC 29.06.2009