Internal Audit Check list for Finance Department

 Internal Audit Check list for Finance Department :-
AStock
Check that :-
1Ageing of FG is done on monthly basis by the stores keeper and authorised by Manager stores
2Physical verification is done monthly by unit staff
3Proper classification of Non Moving Stock is done by unit
4Above records are verified by Manager Commercial and reported to Unit Head, which further reports it to Finance Officer
BCash
Check
1Physical cash in custody of Accounts assistant at least once a month, prefer surprise checks
2The minimum & maximum cash balance at any point of time is Rs.10,000 and Rs. 1 Lac respectively
3That physical cash is verified by person other than the person in who’s custody cash is kept, which is further approved by unit Head
4Payments > 20000 are made through cheque
5That  Assistant finance manager’s surprise physical verification of the cash, done at-least twice a month
6Cash Withdrawal Note for withdrawal of cash from bank which is authorised by Unit Head
CBank
Check that
1Minimum bank balance at any time is Rs 5000
2Balance above a specified limit is invested in FD by approval of AFM
3Monthly BRS is prepared by Mang. Comm and is sent to AFM after Unit Head’s authorisation
4The Cheque Details Register maintained by Ass. A/cs and vetted by Unit Head
5The acknowledgement of the cheque received from the third party and the cheque issued to the third party
6Proper recording of Bank Charges on monthly basis and informing the same to Unit Head and AFM
DDebtors
Check that
1Age wise analysis on monthly basis is done by MC and the same is reported to Unit Head who forward it to AFM
2Credit period & interest thereon as per Sales & Finance Policy
3Quartly balance confirmation & turnover ratio is done by MC & reported to Unit Head
ECreditors
Check that
1Payment is made through cheque only
2Maximum credit period of 30 days or discount, as the case may be is availed
3The Creditors Turnover Ratio is calculated on monthly basis
FReal State Property
Check that
1Proper listing of documents is done in the prescribed format
2All original & chain doc are kept in custody of Unit Head
3Physical verification is done by person appointed by UH & Managerial Personnel and reporting of same to AFM
4Search Report is obtained at the time of purchase.
5Insurance of Property- documented with Unit Head, Copy is kept with A/cs Dept.
GInvestments
Check that
1Proper Investment Register for recording of investments and its verification by UH is done
2New investments are made only after proper approval by AFM
3Proper investment note is prepared by the Finance Officer.
4The original documents of the investments are secured by the Unit Head
HLoans & Advances
Check that
1Proper requirement assessment is made by UH
2Comparative Rate Analysis is done by UH, which is approved by the BOD
3Proper documentation & A/cing is done by FO
4Loan to Staff is as per Loan Policy