Checklist for Audit of Sales and Purchases for Manufacturing Companies

Sales
Accounting policy followed by the company for recognition of sales
Cut off procedure
Credit notes/ Debit notes if any,
Break up for Export and domestic Sales
Check with Reconcilation of VAT and Excise
Variance analysis
Pending orders

Other Income
Vouching
Verification of interest amount
Verification of Dividend amount
Verification of Royalty amount and agreements for the same
calculation for any sale of asset/ scrap etc
Cut off procedure
Variance analysis

Purchase and other Direct Expenses:-
Break up for different type of Purchase
Custom Duty analysis
Duty paid on purchases
Capitalization of incidnetal expenses relating to Purchase
Purchase Retun and DR Note confirmation
Cut off procedure
Variance analysis
Verification of PO (open or not open)

Leave a Reply

Your email address will not be published. Required fields are marked *