INTERNAL AUDIT CHECK LIST FOR FINANCE DEPARTMENT

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Internal Audit Check list for Finance Department

A. Stock

      Check that :-

1 Ageing of FG is done on monthly basis by the stores keeper and authorised by
   Manager stores 

2 Physical verification is done monthly by unit staff 

3 Proper classification of Non Moving Stock is done by unit 

4 Above records are verified by Manager Commercial and reported to Unit Head, which
   further reports it to Finance Officer

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B. Cash

       Check

1 Physical cash in custody of Accounts assistant at least once a month, prefer surprise checks

2 The minimum & maximum cash balance at any point of time is Rs.10,000 and Rs. 1 Lac respectively

3 That physical cash is verified by person other than the person in who’s custody cash is kept, which is further approved by unit Head

4 Payments > 20000 are made through cheque

5 That Assistant finance manager’s surprise physical verification of the cash, done at-least twice a month

6 Cash Withdrawal Note for withdrawal of cash from bank which is authorised by Unit Head

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C. Bank

     Check that:

1 Minimum bank balance at any time is Rs 5000

2 Balance above a specified limit is invested in FD by approval of AFM

3 Monthly BRS is prepared by Mang. Comm and is sent to AFM after Unit Head’s authorisation

4 The Cheque Details Register maintained by Ass. A/cs and vetted by Unit Head

5 The acknowledgement of the cheque received from the third party and the cheque issued to the third party

6 Proper recording of Bank Charges on monthly basis and informing the same to Unit Head and AFM

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D. Debtors

    Check that

1 Age wise analysis on monthly basis is done by MC and the same is reported to Unit Head who forward it to AFM

2 Credit period & interest thereon as per Sales & Finance Policy

3 Quartly balance confirmation & turnover ratio is done by MC & reported to Unit Head

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E. Creditors

       Check that

1 Payment is made through cheque only

2 Maximum credit period of 30 days or discount, as the case may be is availed

3 The Creditors Turnover Ratio is calculated on monthly basis

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F. Real State Property

      Check that

1 Proper listing of documents is done in the prescribed format

2 All original & chain doc are kept in custody of Unit Head

3 Physical verification is done by person appointed by UH & Managerial Personnel and reporting of same to AFM

4 Search Report is obtained at the time of purchase.

5 Insurance of Property- documented with Unit Head, Copy is kept with A/ cs Dept.

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G. Investments

       Check that

1 Proper Investment Register for recording of investments and its verification by UH is done

2 New investments are made only after proper approval by AFM

3 Proper investment note is prepared by the Finance Officer.

4 The original documents of the investments are secured by the Unit Head

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H. Loans & Advances

       Check that

1 Proper requirement assessment is made by UH

2 Comparative Rate Analysis is done by UH, which is approved by the BOD

3 Proper documentation & A/cing is done by FO

4 Loan to Staff is as per Loan Policy

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Regards

CA GROUPS

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