Checklist for Audit of Sales and Purchases for Manufacturing Companies

** 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)

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