Internal Audit of Manufacturing Company
Purchase, Store, Production, Sales, Marketing, Security, Lab, are important department of every Manufacturing Company,
Internal audit have big role to analyse for smooth functioning of every departments.
Here is brief function of Internal audit of manufacturing company.
| Sr.No | FUNCTIONS |
|---|---|
| 1 | Plant Operation |
| a | Yield-Machinery, Manpower & Material |
| b | Budgeted Variance of Production |
| c | Power Analysis |
| d | Labour Analysis |
| e | Treatment of Focus Coil lying unused |
| f | Production Delay due to unavailability of Resources (Material,Labour,Machinery & others) |
| g | Capacity Utilisation of Machine & Labour |
| h | Transit damaged Material |
| i | Abnormal Losses If Any |
| j | Quality Audit of Inward and Outward |
| k | Review of Man Power Allocation Planning |
| l | Review of Plant HR Policy-Labour Policy |
| m | Security |
| i. Maintenance Schedule of Machinery | |
| ii. Security Register Abnormal Report Review (Shift Change) | |
| iii. Rotation of Security Staff | |
| iv. Insurance of Machinery Labour,Factory,Vehicle & Cash in Transit | |
| n | Input & Output Matching with Inward/Outward/Dispatch/RG 1,23/Tally etc. |
| o | Audit of Security Gate Process |
| Sr.No | FUNCTIONS |
|---|---|
| 2 | Purchase |
| a | Review of PO Made during the Period |
| b | Listing of unauthorized Purchase as per Power Limit |
| c | Review of Contract Made during the period |
| d | Review of Vendor Selection Process |
| e | Review of Vendor Payment Policy |
| f | Overdue PO |
| g | Vendor Performance as per PO |
| h | Review of Forward Contract |
| 3 | Stores Audit |
| a | Inward /Outward of Store Register with Gate Records |
| b | Review of Inward & Issue Activity |
| c | Adhoc Audit of Bin Card Maintenance |
| d | GRN Date vs. Security Date Review |
| e | Review of Quality Control Of Store |
| f | Review of Store Management |
| g | Review of Action taken on Short Delivery |
| h | Review of Slow/Non Moving Stock |
| i | Minimum order Quantity Review |
| 4 | Statutory compliance |
| a | Excise Register Matching with Inward & Outward |
| b | Job work Register (57 (F4) |
| c | TDS Deduction Practice |
| d | Service Tax Review |
| e | Foreign Payment Review |
| f | PF & PT Review |
| g | VAT Review |
| h | Cases Pending Under Negotiable Instrument Act |
| Sr.No | FUNCTIONS |
|---|---|
| 5 | ROC compliance & Corporate Governance |
| a | Review of Minute Books |
| b | Review of Filling |
| c | Review of Power Used by Company Officer |
| d | CSR |
| e | Any Non Compliance as per Companies Act |
| 6 | Ledger Scrutiny |
| 7 | Cash & Bank Review |
| a | BRS |
| b | Physical Verification Cash |
| c | LC Discounting & Charges |
| d | Interest & Charges Review |
| e | Stale Cheque Report |
| f | Cheque Bounce Report |
| g | Fund Management |
| 8 | Corporate HR & Payroll |
| a | Application of HR Policy |
| b | Review of Reimbursements |
| c | Review of Grievances |
| d | Status of Vishakha Committee |
| e | Surprise Head Count as per attendance Report |
| f | Reconciliation of Employee Loan & Advances |
| g | Review of Staff Welfare (Medical, working Environment, Staff Motivation, Training) |
| h | Late Coming Report |
| i | Performance Review of System, Policy & Technology |
| 9 | Audit of Exp. |
| a | Verification of Bills with Tally |
| b | Approval Review of Bills |
| c | Review of Bill Supporting |
| d | Review of Debit Note-To be Raise/Raised |
| e | Trend Analysis according to Sales/Production |
| f | Forex Gain/Loss Calculation |
| 10 | MIS Authenticity |
| 11 | Audit of Sales |
| a | Verification of Bills with Tally |
| b | Review of Bill Supporting |
| c | Review of Credit Note-To be Raise/Raised |
| d | Review of Transport Challan Attached with Invoice |
| e | Penalty & Price Variation Review |
| f | Budgetary Performance |
| g | C & F Form Status |
| h | Utilisation of Advance Authorization Licenses |
| 12 | Marketing |
| a | Customer Complaint Addressal Review |
| b | Target Performance-KAM |
| c | Debtors Performance-Ageing |
| 13 | Business Analysis |
| a | Industry Overview-Future Prospect of Business |
| b | Ratio Analysis -In comparison with Industry |
| c | Technology Review |
| d | Costing & Pricing of Product |
| 14 | Capex |
| a | Capex Bills Review |
| b | Capitalization Checking |
| c | FAR Checking |
| d | Barcode & Tagging Status |
| 15 | Overview Assurance on Internal Control |
| 16 | Transporting & Logistic |
| a | Review of Transportation Contract & Rate |
| b | Transportation Expense & Pooling Review |
| 17 | Follow up of Previous Audit |
| 18 | Stock Audit |
| 19 | Any other area Requested by management |