Audit Objective

To review the existing internal controls system, with reference to the company policies and related
activities, evaluate the internal controls system with regards to effectiveness of its design, identify
weaknesses, if any, and suggest measures for improvements therein.

A. Areas Covered in Compliance Audit

1. Retail System.
Audited by Remarks
- Unauthorized use of Login ID’s in absence of the concern user.
- Sharing of BM ID Password.
- Multiple login with single User Login ID.
- Negative stock quantity in system.
- Card sales punched in Cash mode.
- Missing cashier name from Computer Generated Receipt.

2. Documentations
- Gate Passes
- Outslips
- Attendance Record
- Customers Survey Forms.
- Deposits receipts for proper authentication.

3. Stock Movements
- Delivery Documents
- IST’s related documents

4. Cash Handling.
- Sales Proceed.
- Petty Cash
- Unclaimed Expense vouchers
- Float Amount.

5. Operational and Maintenance Related Issues.

- Inappropriate placement of Stock.
- Damaged/manually written barcode/ price tag articles on display.
- Damaged or no security tags on displayed articles.
- Staff without uniforms.
- Talkers not placed where required.
- Cleaning not up to the mark.
- Store policy not installed.
- Fused Lights at different parts of the Branch.
- Missing signage plate at Trial/Store/Wash Room.
- Seepage issues or crack mark on ceilings and walls.
- Damaged mannequins use for product display.
- Damaged Company Logo’s
- Security Checkpoints.
- Emergency Exit.
- Safety equipment training.
- Any other maintenance issues
6. Customer Facilitation
CRM Record for complaints.
Complaint resolution process.

7. Safety & Security Analysis.

- Distortion in view/ need to relocate or addition or no view due to
faulty camera
- Panic button not in working condition.
- Unavailability or malfunctioning of Security Checkpoints.
- Open electrical wirings.
- Expired fire extinguishers.
- Unavailability of monthly inspection card on fire extinguishers.
- Inactive smoke detectors.
- Fire Extinguishers not placed on prominent place.

B. Monthly/Management Change Cash Audits

To ensure the completeness and the protocols define to undertake the Cash Management.

Scope

- To verify the completeness and accuracy of cash.

- Sales Proceed
- Manual Sales Receipts, if any
- Petty Cash
- Float Amount
- Previous Sales Deposits (If Any).
- Any other cash found from till or cash safe, which was not part of
cash count activity, will be subject to investigation

Physical Cash Audits

Cash Audits will be done once a month at every business unit and also in the event of management
change or during investigations.

Issues addressed through Cash Audits;

a.Disallowed Expenses.
b.Payment given to government officials (Labor / Form C / SESSI.
c. Differences in Manual Sale Bills.
f. Long pending issues.
g.Unsettled amounts with ex-employees
h.Cash Counting against daily sales receipts.