IFC-Template-Finance & Account

Minda Storage Batteries Private Limit
Control Sheet for Internal Financial controls - Test
Process Finance and Ac
Incorrect processing of Journal Entries

Point of Focus
Journal entries are not recorded in the correct period
1.Finance team book the journal entries in the SAP based on the supporting documents / calculations an
Entity Key
2. UFH reviews the line items of trial balance on monthly basis for monthly reporting and ensures journal
Control
3.On monthly basis, Finance head reviews the MIS reporting at the month end of the respective units.
IT Dependency Manual Frequency
Process Owner Finance Team Process Documenters
Testing Inspection Data Source

Technique
1. Check Journal entries in SAP with supporting documents and same is reveiwed by UFH.
Testing steps 2. Check line items of trial balance.
3. Check whether the MIS report is reviewed by UFH on monthly basis.
Sr. No. Item description
1 Trial Balance,ledger, MIS report
Reviewed by Prakhar Bajpai, Manager, Protiviti
Conclusion
Minda Storage Batteries Private Limited (MSBPL)
ontrol Sheet for Internal Financial controls - Test of Operating Efficiency
Finance and Account
Control Ref. F&A-C.1 Test Result
ased on the supporting documents / calculations and same is reviewed by UFH.
hly basis for monthly reporting and ensures journal entries are posted correctly.
eporting at the month end of the respective units.

Ongoing Risk Rating Higher Sample Size
Saurabh Gupta Testing Date 8-Mar-19 Test Performed by
Trial Balance,ledger, MIS report
ments and same is reveiwed by UFH.
on monthly basis.
Attributes to be verified
Journal entries in SAP with Journal Entries reveiwed by UFH Review line items of Trial Balance and
supporting documents journal entries posted correctly
a a a
Pass
40
Rahul Gupta
MIS report is reviewed by UFH on

monthly basis.
a
Point of Focus Unauthorized Journal Entries posted
Entity Key Access to book the journal entries is restricted to accounting personnel (Finance team) in the SAP based
Control respective reporting manager.

Technique
1. Check access right for booking of journal entries only to finance team
Testing steps
2. Journal entires are booked only with proper supportings
1 Trial Balance and ledger & aceess right list
Conclusion
Finance and Account
ounting personnel (Finance team) in the SAP based on the supporting documents / calculations and same is manually reviewed by UFH
Trial Balance and ledger & aceess right list
nly to finance team

tings
Access right for booking of journal entries only to finance team Journal entires are booked only with proper supportin
a a
Pass
d same is manually reviewed by UFH/
40
Rahul Gupta
are booked only with proper supportings
a
Point of Focus Incorrect accruals/Prepayments made in the books
At unit level , User (Finance team) book the accruals / prepayment entries in the SAP based on the supp
UFH/ respective reporting officer either posts the entries in SAP/sign off the hard copy voucher.
Entity Key
Control

Technique
1. Check accruals/prepayments entries posted in SAP with proper supportings

Testing steps
2. Check hard copy vouchers sign by UFH/respective reporting officer.
1 Trial Balance & ledger
Conclusion
Finance and Account
/ prepayment entries in the SAP based on the supporting documents and same is reviewed by UFH/ respective reporting officer.
ies in SAP/sign off the hard copy voucher.
Trial Balance & ledger
P with proper supportings

reporting officer.
Accruals/prepayments entries posted in SAP with proper
supportings Hard copy vouchers sign by UFH/respective reporting offi
a a
Pass
/ respective reporting officer.
40
Rahul Gupta
ers sign by UFH/respective reporting officer
a
Point of Focus Reversal of prepayment are not made in correct period
At unit level , User (Finance team) ensures the reversal of the prepayments on month basis to respective
Prepaid matrix is reviewed on monthly basis by repsective UFH.
Entity Key
Control

Technique
1. Check reversal of prepayments is done in SAP on monthly basis.

Testing steps
2. Prepaid matrix is reveiwed by UFH on monthly basis.
1 Trial Balance and Prepayments Schedule
Conclusion
Finance and Account
al of the prepayments on month basis to respective expense head in the SAP as per the prepaid matrix.
ctive UFH.
Trial Balance and Prepayments Schedule
monthly basis.
is.
Reversal of prepayments is done in SAP on monthly basis Prepaid matrix is reveiwed by UFH on monthly basis
a a
Pass
atrix.
40
Rahul Gupta
x is reveiwed by UFH on monthly basis
a
Incorrect / Incomplete monthly financial reporting of Cash &

Point of Focus
Cash Equivalent
1.At unit level , cash physical verification is coducted by Cashier and same is reviewed and signed off by
Entity Key 2. At unit level, monthly BRS is prepared by finance personnel and same is reviewed and signed off by U
Control Stale cheques are reviewed on monthly basis and same are reversed.
3.At unit level, balance confirmations from bank is taken and reconciled with the bank books.

Technique
1. Check Physical Verification of cash is conducted and same is reviewed and sign off by UFH.
2. Check BRS is prepared monthly and same is reveiwed and sign off by UFH.
Testing steps
3.Check Stale cheques entries are reversed timely.
4. Check balance confirmations from bank is taken and reconciled with the bank books.
1 BRS and cash ledger
Conclusion
Finance and Account
Control Ref. F&A-5 Test Result
by Cashier and same is reviewed and signed off by respective UFH on fortnightly basis.
ersonnel and same is reviewed and signed off by UFH.
me are reversed.
en and reconciled with the bank books.
Fortnightly/Monthly Risk Rating Higher Sample Size
BRS and cash ledger
nd same is reviewed and sign off by UFH.

wed and sign off by UFH.
nd reconciled with the bank books.
Physical Verification of cash is BRS is prepared monthly and Stale cheques entries are reversed
conducted and same is same is reveiwed and sign off by
reviewed and sign off by UFH UFH timely
a a a
Pass
Rahul Gupta
Balance confirmations from bank is

taken and reconciled with the bank
books
a
Misappropriation of ageing of debtors-

Unauthorized modification of invoice date/amount/quantity in
Point of Focus SAP to facilitate Misappropriation of debtor ageing and
extending of excess credit period of customer in return for
kickbacks
1.At unit level , UFH, plant head and Business head reviews the debtor ageing and over due outstanding
Entity Key
Control 2. Debtor status is reviewed by management on periodically basis. More than 120 Days also reported to

Technique
1. Check debtor ageing is reveiwed by UFH, plant head and business head.
Testing steps
2. Check Balance Confirmation from debtor is taken and reconciled with them.
1 Debtor Ageing and balance confirmation
Conclusion
Finance and Account
eviews the debtor ageing and over due outstanding balances on monthly basis.
odically basis. More than 120 Days also reported to Management and suitable explanation also asked from marketing for pending dues.
Debtor Ageing and balance confirmation
ad and business head.

and reconciled with them.
Debtor ageing is reveiwed by UFH, plant head and business head Balance Confirmation from debtor is taken and reconciled w
a a
Pass
ed from marketing for pending dues.
Rahul Gupta
from debtor is taken and reconciled with them
a
Incorrect / Incomplete monthly financial reporting of Accounts

Payables
Point of Focus Non-adjustment of clearing account balances within the
appropriate period resulting in incorrect asset/ liabilities
balances
1.At unit level , UFH, Unit Material head and Business head reviews the creditors ageing and over dues o
Entity Key 2.At unit level, finance personnel and UFH reviews the clearing accounts on monthly basis to ensure that
Control
3.At corporate level , Corporate finance team reviews the clearing accounts and take confirmation from re

Technique
1. Check Creditors ageing is reveiwed by UFH, plant head and business head.
2. Check Balance confirmation is done and reconciled with them.
Testing steps
3. Check Clearing account is reviewed on monthly basis.
4. Check no re-classification entries are pending for more than 90 days.
1 Creditors Ageing , balance confirmation and clearing account
Conclusion
Finance and Account
s head reviews the creditors ageing and over dues on monthly basis.
e clearing accounts on monthly basis to ensure that the re-classification entries are posted on timely basis.
the clearing accounts and take confirmation from respective UFH that no re-classification entries are pending on quarterly financial rep
Creditors Ageing , balance confirmation and clearing account
head and business head.

d with them.
sis.
more than 90 days.
Creditors ageing is reveiwed by

UFH, plant head and business Balance confirmation is done and Clearing account is reviewed on
reconciled with them monthly basis
head
a a a
Pass
y basis.
re pending on quarterly financial reporting.
Rahul Gupta
No re-classification entries are

pending for more than 90 days
a
Foreign currency transactions not recorded accurately and

Point of Focus
completely
Entity Key 1.Access rights to update the forex rate in master in SAP is restricted with Corporate Finace Team.
Control 2.Foreign exchange fluctuations are booked by the respective unit finance team at the time of booking of
IT Dependency Automatic Frequency

Technique
1. Check Forex rate is updated in SAP by Corporate team.

Testing steps
2. Check Forex fluctuations are booked timely by finance team.
1 Forex ledger
Conclusion
Finance and Account
SAP is restricted with Corporate Finace Team.

spective unit finance team at the time of booking of transactions.
Monthly Risk Rating Higher Sample Size
GL for Forex
eam.
nce team.
Forex rate is updated in SAP by Corporate team Forex fluctuations are booked timely by finance team
a a
Pass
Rahul Gupta
ons are booked timely by finance team
a
Point of Focus Incorrect provision for gratuity and leave encashment
1.The actuarial valuation is done based on the input shared by the respective UFH for the gratuity and le
Entity Key
2.At unit level , respective units books the provision for gratutity and leave encashment based on the actu
Control

Technique
1. Check Actuary report and verfiy valuation is done correctly on the basis of input shared by UFH
Testing steps
2. Check Provision is made in books of account based on actuarial valuation report.
1 Actuary report and GL of Gratuity & leave encashment
Conclusion
Finance and Account
shared by the respective UFH for the gratuity and leave encashment.
or gratutity and leave encashment based on the actuarial valuation reports shared by Corporate finance team.
Actuary report and GL of Gratuity & leave encashment
correctly on the basis of input shared by UFH

d on actuarial valuation report.
Actuary report and verfiy valuation is done correctly on the basis Provision is made in books of account based on actuarial valua
of input shared by UFH
a a
Pass
nce team.
Rahul Gupta
ks of account based on actuarial valuation report
a
Unauthorised access to accounting system or entries are

Point of Focus
recorded by unauthorised users
Entity Key 1.Access rights to respective users are strictly defined in SAP based on their job profile.
Control 2.Access rights to financial module is provided by SAP team on reciept of approvals from respective UFH

Technique
1. Obtain Access right list.

Testing steps
2. Check whether appropriate rights are given to approved persons.
1 Access right list
Conclusion
Finance and Account
d in SAP based on their job profile.

P team on reciept of approvals from respective UFH and Business Head.
Access right list
oved persons.
Access right list Appropriate rights are given to approved persons
a a
Pass
Rahul Gupta
rights are given to approved persons
a
Point of Focus Changes made in Books after closing
Entity Key SAP restricts the booking of entry post closure of period in accounting system.
Control

Technique
Testing steps 1. Check SAP restricts post closure entries.
1 SAP
Conclusion
Finance and Account
od in accounting system.
SAP
SAP restricts post closure entries.
a
Pass
Rahul Gupta
Inaccurate tax deduction (TDS) and recording in books of

Point of Focus
accounts '
1.At unit level , SAP team links the TDS rates with the vendor account at the time of vendor account crea
defined in the service request from user department. After the updation the user department verifies that
Entity Key 2. At unit level , finance team manually select the TDS section in SAP for the deduction of the TDS based
Control the expense or advance payments whichever is earlier.

Technique
1. Check correct TDS rates in SAP.

Testing steps
2. Check finance team select correct TDS section based on nature of services.
1 TDS Ledger
Conclusion
Finance and Account
e vendor account at the time of vendor account creation in vendor master based on the PAN , lower tax deductions certifcate and nature
After the updation the user department verifies that the updation is correct.
S section in SAP for the deduction of the TDS based on nature of services (In invoice/ service orders) provided by vendor at the time of
er.
TDS Ledger
sed on nature of services.
Correct TDS rates in SAP Finance team select correct TDS section based on nature of s
a a
Pass
tax deductions certifcate and nature of service
s) provided by vendor at the time of recording
Rahul Gupta
correct TDS section based on nature of services
a
Point of Focus Incorrect deposit of TDS
At unit level, respective finance executive deposits the TDS based on the TDS report extracted from SAP
Entity Key
Monthly reconciliation of TDS payable and actual paid is reveiwed by UFH.
Control

Technique
1. Check TDS is deposit timely.

Testing steps
2. Check TDS reconcilation is done correctly.
1 TDS ledger, TDS Challan and TDS reconcilation sheet
Conclusion
Finance and Account
e TDS based on the TDS report extracted from SAP.

d is reveiwed by UFH.
TDS ledger, TDS Challan and TDS reconcilation sheet
TDS is deposit timely TDS reconcilation is done correctly
a a
Pass
Rahul Gupta
reconcilation is done correctly
a
Point of Focus Incorrect filing of TDS return
At unit level, finance team prepares the TDS return and same is reviewed by UFH.
Entity Key
Post review, finance team submits the tax return.
Control
Acknowledgement of return is signed off by UFH.

Technique
1. Check TDS return is prepares correctly and reviewed by UFH.

Testing steps
2. Check Acknowledgement of return is signed off by UFH.
1 TDS Return
Conclusion
Finance and Account
nd same is reviewed by UFH.
TDS Return
ed by UFH.
UFH.
TDS return is prepares correctly and reviewed by UFH Acknowledgement of return is signed off by UFH
a a
Pass
Rahul Gupta
gement of return is signed off by UFH
a
Printing of incorrect payee name/ modification of payee name at

Point of Focus
transaction level
Pre printed cheque book stationery is being used for writing cheque payments. Cancelled cheques are re
Cheques are printed through SAP and vendor's name is a necessary field for printing a cheque.
Entity Key
Control
Manual intervention on cheques are not allowed, incase incorrect printing on cheque a fresh cheque is pr

Technique
1. Check Cancelled cheques are recorded and kept separately.

2. Check Cheques are printed through SAP and vendor name is mentioned on cheque.
Testing steps
3. Check manual intervention on cheques are not allowed.
4. Fresh cheque is printed against incorrect cheque.
1 Cheque Book

Conclusion
Finance and Account
writing cheque payments. Cancelled cheques are recorded and kept separately.
e is a necessary field for printing a cheque.
se incorrect printing on cheque a fresh cheque is printed against the entry.
Cheque Book
separately.
or name is mentioned on cheque.
wed.
Cancelled cheques are recorded Cheques are printed through SAP Manual intervention on cheques are
and kept separately and vendor name is mentioned on not allowed
cheque
a a a
Pass
Rahul Gupta
Fresh cheque is printed against

incorrect cheque
a
Point of Focus Incorrect provision for warranty created in the books.
Entity Key
Provision for warranty is created at quarter end and year end basis company's accounting policy after ap
Control

Technique
1. Check Provision for warranty is created on quarterly and annual basis.

Testing steps
2. Check UFH approves provision for warranty as per company's policy.
1 Provision for warranty dump
Conclusion
Finance and Account
ear end basis company's accounting policy after approval from Unit Finance Head
Provision for warranty dump
y and annual basis.

company's policy.
Provision for warranty is created on quarterly and annual basis UFH approves provision for warranty as per company's p
a a
Pass
Rahul Gupta
vision for warranty as per company's policy
a
Point of Focus Inaccurate or incomplete records of duty drawback
1.Export Incharge provides monthly DBK amount to Finance Department for booking the income.
Entity Key
2. Finance Department conducts monthly reconciliation of amount credited in assigned bank account and
Control
3. Monthly review done by UFH for pending DBKs.

Technique
1. Check Correct monthly booking of DBK amount

Testing steps
2. Check reconcilation in done monthly and review by UFH
1 Duty Drawback ledger
Conclusion
Finance and Account
Finance Department for booking the income.

on of amount credited in assigned bank account and Monthly DBK entry.
Duty Drawback ledger
UFH
Correct monthly booking of DBK amount
Reconcilation in done monthly and review by UFH
a a
Pass
Rahul Gupta
n in done monthly and review by UFH
a
Incorrect payment due dates (based on supplier credit period)

recorded in system resulting in delayed /early payment
Point of Focus
Modification of payment due date as per PO leading to early/
delayed payment
Entity Key
SAP does not allow payment before due date in auto payment mode. Payment can be done before due d
Control

Technique
1. Check SAP doesn't allow early payment.

Testing steps
2. Early payment can be done after proper approval.
1 Vendor Payment Dump

Conclusion
Finance and Account
payment mode. Payment can be done before due date based on a written approval received from the material head and plant head.
Vendor Payment Dump
SAP doesn't allow early payment Early payment can be done after proper approval
a a
Pass
he material head and plant head.
Rahul Gupta
ent can be done after proper approval

IFC-Template-Finance & Account

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

IFC-Template-Finance & Account

Hochgeladen von

Copyright:

Verfügbare Formate

Minda Storage Batteries Private Limit

Control Sheet for Internal Financial controls - Test

Process Finance and Ac

Incorrect processing of Journal Entries

Process Owner Finance Team Process Documenters

Testing Inspection Data Source

Sr. No. Item description

1 Trial Balance,ledger, MIS report

Reviewed by Prakhar Bajpai, Manager, Protiviti

Finance and Account

Control Ref. F&A-C.1 Test Result

ased on the supporting documents / calculations and same is reviewed by UFH.

eporting at the month end of the respective units.

Saurabh Gupta Testing Date 8-Mar-19 Test Performed by

Trial Balance,ledger, MIS report

ments and same is reveiwed by UFH.

MIS report is reviewed by UFH on

Process Finance and Ac

Point of Focus Unauthorized Journal Entries posted

IT Dependency Manual Frequency

Process Owner Finance Team Process Documenters

Testing Inspection Data Source

Sr. No. Item description

1 Trial Balance and ledger & aceess right list

Reviewed by Prakhar Bajpai, Manager, Protiviti

Finance and Account

Control Ref. F&A-C.2 Test Result

Ongoing Risk Rating Higher Sample Size

Saurabh Gupta Testing Date 8-Mar-19 Test Performed by

Trial Balance and ledger & aceess right list

nly to finance team

d same is manually reviewed by UFH/

are booked only with proper supportings

Process Finance and Ac

Point of Focus Incorrect accruals/Prepayments made in the books

IT Dependency Manual Frequency

Process Owner Finance Team Process Documenters

Testing Inspection Data Source

1. Check accruals/prepayments entries posted in SAP with proper supportings

Sr. No. Item description

1 Trial Balance & ledger

Reviewed by Prakhar Bajpai, Manager, Protiviti

Finance and Account

Control Ref. F&A-C.3 Test Result

Ongoing Risk Rating Higher Sample Size

Saurabh Gupta Testing Date 8-Mar-19 Test Performed by

Trial Balance & ledger

P with proper supportings

/ respective reporting officer.

ers sign by UFH/respective reporting officer

Process Finance and Ac

Point of Focus Reversal of prepayment are not made in correct period

IT Dependency Manual Frequency

Process Owner Finance Team Process Documenters

Testing Inspection Data Source

1. Check reversal of prepayments is done in SAP on monthly basis.

Sr. No. Item description

1 Trial Balance and Prepayments Schedule

Reviewed by Prakhar Bajpai, Manager, Protiviti

Finance and Account

Control Ref. F&A-C.4 Test Result

Ongoing Risk Rating Higher Sample Size

Saurabh Gupta Testing Date 8-Mar-19 Test Performed by