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Internal Audit Program Checklist

Internal Audit Program Checklist

The Internal Audit Program includes following contents are as under:

  1. Vouching
  2. Statutory Requirements
  3. Ledger Scrutiny
  4. B.R.S. (Bank Reconciliation Statement)
  5. Cash verification
  6. Internal Control System
  7. Reconciliation (of others items)
  8. Checking of MIS Report
  9. System Audit

After that the following points were discussed in detail on the each item of content of Internal Audit Program.

 Vouching

The following are the vouching which carried out by the company in the books of accounts.

Bank Vouching

The following points needs to be reviewed at the time of bank vouching.

  • Verification of the Bank Balances, Bank Reconciliation Statement, timely updation of BRS,Internal Audit Program Checklist Identification & Reporting of Stale Cheques.
  • Loans secured or unsecured: reviewing and reporting of balances/reconciliation.
  • Fixed deposits: Reviewing and Reporting of Balances.
  • Interest calculations: Verifying and Reporting interest charged on: Loans from Banks,
  • Loans procured from Financial Institutions, Banks, and interest received on Fixed Deposits.
  • Verification and reporting of the balance confirmations and reconciliations drawn by the management.
  • Detail of LC,B/G
  • Reporting of inoperative accounts

Cash Vouching

The following points needs to be reviewed at the time of Cash vouching.

  • Cash Verification
  • Cash Vouching
  • Checking inter divisions/ inter branches adjustments and balances.

Sale Vouching

The following points needs to be reviewed at the time of Sale vouching.

  • Sales Master
  • Checking of Sales Invoices
  • Rates Approvals
  • Parts Price list
  • Confirmation of Customer order
  • Reviewing of transportation cost as per Purchase order and auto update of transportation cost if already paid.
  • Clauses in Sale Agreement
  • Report on Amortization/ apportion tool cost
  • Report on schedule of customers
  • Rejection of order by (i) Return Material Authorization (RMA) (ii) Party side rejection and also check the reason for rejection with quality department.
  • Scrap Sale
  • Free of Cost losses with the quantity.
  • Truck expenses along with Driver Salaries and calculation of cost for per Truck.
  • Accidental Claim Report.
  • New Enquiry Process (How much enquiry receive/solved.)
  • Rate Approval (Check pricing authority).
  • Depleting Business (part wise report and party wise monthly comparison)
  • Customer-vise Sales Comparison
  • FOC reason and report on cost associated with FOC against rejection
  • Approvals of Discounts
  • Sales order/Customer Order
  • Rejection Report and there cause

Purchase Vouching

The following points needs to be reviewed at the time of Purchase vouching.

  • Actual Receipt of Material according to Schedules.
  • Checking of Same Items But Procured From Different Suppliers
  • Purchase Vouching along with their reconciliation with MRN, PO and Stock Register.
  • Show separate Report on wrong Coding.
  • Show separate Report on voucher approval and signature missing.
  • Delegation of Authority.
  • Report on later on schedule of Purchase Department.
  • Transportation Cost included in PO or not.
  • Report on effect of price increase.
  • Schedule Of Alternate Sources of purchase And Its Pricing Comparisons
  • Uniformity Of Monthly Purchases
  • Check proper authentication of purchase order

Journal Vouching

The following points needs to be reviewed at the time the Journal vouching

  • Checking of Journal Vouching.
  • Regularly update the voucher in System.
  • Debit/Credit note vouching.
  • Separate the voucher if not understandable and go for detailed investigation for them.

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