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Internal Audit Check list for Finance Department

Internal Audit Check list for Finance Department

 Internal Audit Check list for Finance Department :-
A Stock
Check that :-
1 Ageing of FG is done on monthly basis by the stores keeper and authorised by Manager stores
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
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 5000
2 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
5 The acknowledgement of the cheque received from the third party and the cheque issued to the third party
6 Proper recording of Bank Charges on monthly basis and informing the same to Unit Head and AFM
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 AFM
2 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 that
1 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 that
1 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



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