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CLOSE OFF MEETING FOR THE JANUARY TO JUNE 2015 INTERNAL

AUDIT OF BARMORE INVESTMENTS T/A OCEAN.


OPENING:
CLIENT NAME

: BARMORE INVESTMENT (PVT) OCEANS FOODS

AUDITORS

: PNA CHARTERED ACCOUNTANTS

DATE

: 18 SEPTEMBER 2015

TIME

: 11:37AM

PLACE OF MEETING

: 100A S. PARIRENYATWA (PNA OFFICES)

ATTENDEES
Mr J.W Ncube (CEO)
Mr T. Siwela CA (Z) (Chairperson)
Miss S. Tshabangu (Auditor PNA)
Miss M. Masuku (Auditor PNA)
Mr M. Thebe (Auditor PNA)
Miss S. Vuma (Auditor PNA)
Miss P. Moyo (minuting)
1. APPROVAL OF AGENDA
M.Thebe opened the meeting with a word of prayer. The chair highlighted
the agenda of the meeting. The CEO acknowledged his teams dedicated
efforts towards the company. He further informed PNA that he has no
issues with the way the audit was carried out. He is aware that improved
audits result in improved quality systems and product quality
2. OBJECTIVE OF THE MEETING
i.

Issues that affected the audit

The CEO is overly impressed with the way PNA is carrying out their audits.
Revenue loss and tax related issues are his main concern.
ii.

Issues on the report to management

The CEO suggested that when managements incompetence is exposed


on reports, individuals involved should each be held accountable.
Management is expected to defend their faults not redirect them to the
CEO.
3. RECURRING ISSUES

i.

Vouchers without supporting documentation

The audit recorded that all cash payment vouchers must have supporting
documentation. T. Siwela informed the CEO that if informal agreements or
structured deals are settled, the company should be aware that they will
have a tax risk attached to that.The company needs to look for registered
traders. M. Masuku explained that the Act states that; if the person is
registered and its a regular trade then they cannot withhold tax, but if its
not a registered person, Zimra will require this documentation.
T.Siwela further informed the CEO that Cephas (Accountant) only
discusses the same issues but ignores the core which is tax and
allowances. The auditors stated that the door is widely open for any form
of consultation and all tax invasion documents will be withdrawn when
submitting Zimra documents.
ii.

Lack of Inventory Reconciliations between Production & Stores

The CEO discussed this issue with Msibi (Bakery Manager). The company
has introduced a new system on inventory checks where it records all raw
materials and gives a summary at the end of each day. He is confident
that they will adhere to all laid down procedures. This will help keep track
and lesson the risk of inventory items being misappropriated.
Barmore Investments realises that efficient inventory checks ensures that
capital is not tied up unnecessarily and protects production if problems
arise with the supply chain. Milling packaging improvement and handing
of breakages has been sorted.
iii.

Inaccurate Recording of Information

Admin in charge should check all invoice books upon receipt before
issuing them to avoid duplicated books.
iv.

Incomplete Production Summary Report

The milling company is vastly growing and there is an increase in demand


and supply. So the company will invest in adding more personnel. There
will be appropriate rectification of reports and accurate information at
milling and stores.
v.

Supplier Tax Clearance

All suppliers have been asked to bring their tax clearances. The company
will keep checking updates of this file so that it doesnt face financial
losses due to these tax penalties.
vi.

Asset tagging

Barmore investment has assets which are not yet tagged. This issue will
be reviewed. The auditors were asked to give the company any
suggestions they had concerning tagging and a follow up will be done.
vii.

Inventory Count Procedures

T.Siwela suggested that, there should be a company procedure manual


and it should be a policy which should be followed every time before each
inventory count. The CEO assured the meeting that he will do a follow up
with Clive (Systems Admin).
4. NEW ISSUES
All bank and creditors reconciliation statements are available. The
company banks with CBZ and it is straight forward payments, it would be
easy to track. T Siwela also suggested that it would be advisable to use
RTGS, as it is easily traceable.
5. AREAS OF DISAGREEMENT
i.

ii.

The CEO requested the auditors to investigate and inform him on


how other companies or parastatals are dealing with these tax
issues. M. Masuku informed the meeting that parastatals like GMB
are exempted from tax but companies pay for every supply. She
further suggested that she will look for any loopholes regarding tax.
The kiosk now has its own expenses. The fiscal device is now
available but it is not yet configured. Tinashe (IT technician) is set to
configure it.

6. CLOSING REMARKS
The auditors were advised to come regularly to collect data, before the
main audit resumes and not to be off the radar for a long period. The next
audit was scheduled to begin after 6 months. Without any further ado, the
meeting adjourned.

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