Ref. Done By Exceptions Discuss with the client and understand: - General accounting policy with respect to stock related transactions. The system of accounting of stock. The persons authorised to handle the stocks and sign the stores documents. Have an opening meeting with the Departmental head and other relevant personnel to Discuss the scope and focus of the audit Prioratise on the work to be performed dentify the nternal audit coordinator for coordinating the audit in the department Prepare and issue a copy of list of deliverables !information" to the # coordinator based on the scope and audit steps mentioned below and agree upon the time within which the information would be made available. Prepare a movement sheet of the bank accounts$ ascertaining whether any new bank accounts have been opened during the period of audit and whether any accounts have been closed. Prepare a control sheet in respect of bank accounts$ regard being had to: - %ook balance. %alance as per bank statement & confirmation. Preparation of %'(. )hether the %'( is being verified by the employees* superior +btain a copy of the bank accounts$ their respective bank reconciliation statement$ and confirmation. (crutinise the %'( for long outstanding items.
#scertain the nature of the items appearing in the %'(. (crutinise subse,uent months statements for debits and&or credit to the bank account. Record of Work Done Sch Ref. Done By Exceptions -erify if there are debits or credits in the bank statement not appearing in the bank book and vice versa. #scertain the nature of transactions through each bank and the balances in the bank accounts and that such amounts are not pre.udicial to the interest of the company #scertain if there is any significant event with regard to the +D & // limit that the company can avail. #scertain if there is any fresh charge & lien$ or any encumbrance or right of similar nature$ and whether the provisions of the /ompanies #ct and other disclosures are ade,uately made. #scertain the repayment schedule and see to that interest commitments are appropriately met. -erify disclosure is made in the financial accounts of the payment schedule of the immediately succeeding 01 financial year. Physically verify the cash at the respective locations of the unit and the treatment of che,ues on hand in this regard. 2nsure that the cash on hand is within the authorised limit and further that such amount is insured. -erify cash e,uivalents +3*s tokens etc. 2nsure that such advances are suitably recovered and reflected in the books of accounts. 2nsure that an aging analysis of such balances can be made at any time. -erify that in respect of such advances: - There is authorisation. (upportings. #ccounting effect. 4easures to recover are made known. Record of Work Done Sch Ref. Done By Exceptions /ontrol is made over the completeness of these advances. #scertain the cash balances over the period of audit and ensure that the physical balance of cash was at no point pre.udicial to the interest of the company. 2nsure in this regard that the amount of cash at any point in time can meet apart from routine e5penses$ e5penditure of an e5ceptional kind$ e.g. medical e5penses etc. #scertain that only in respect of whom there is a fidelity guarantee$ handle cash. #scertain whether cash book balance is balanced daily and the physical cash in other departments is periodically verified by the accounts department. -ouch for cash and bank e5penses and receipts and ensure that: - The vouchers are approved. (igned off by the cashier. Defaced. (upportings are available. 6ature of the e5penses is in line with business$ i.e. no personal e5penses are reimbursed etc. 2ntries are made as and when the voucher is passed. #uthorisation limits are as per resolutions passed or #rticles of #ssociation. +ther controls as warranted by audit are complied with. 'easons and nature of e5penses$ if any$ above 's. 17$777 in cash. +btain an understanding of the computer environment and accounting transactions therein to perform a substantive and or analytical test. 2nsure that : - The voucher number is given automatically by the system and is not manually given. 2nsure that the date function is programmed such that backdating or making entries in respect of previous days is not made. #de,uate back up is taken and fre,uently so. There is access controls in respect of cash and bank related packages. Record of Work Done Sch Ref. Done By Exceptions 2nsure that there is an updated virus scanner. -erify any instances of cash withdrawal more than 's.87777