Internal Audit of Manufacturing Company

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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.NoFUNCTIONS
1Plant Operation
aYield-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
jQuality Audit of Inward and Outward
kReview of Man Power Allocation Planning
lReview of Plant HR Policy-Labour Policy
mSecurity
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.NoFUNCTIONS
2Purchase
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
3Stores 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
4Statutory 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.NoFUNCTIONS
5ROC compliance & Corporate Governance
aReview 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
6Ledger Scrutiny
7Cash & 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
8Corporate 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
iPerformance Review of System, Policy & Technology
9Audit 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
10MIS Authenticity
11Audit of Sales
a Verification of Bills with Tally
bReview 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
12Marketing
a Customer Complaint Addressal Review
bTarget Performance-KAM
c Debtors Performance-Ageing
13Business Analysis
a Industry Overview-Future Prospect of Business
b Ratio Analysis -In comparison with Industry
c Technology Review
d Costing & Pricing of Product
14Capex
a Capex Bills Review
b Capitalization Checking
c FAR Checking
d Barcode & Tagging Status
15Overview Assurance on Internal Control
16Transporting & Logistic
a Review of Transportation Contract & Rate
b Transportation Expense & Pooling Review
17Follow up of Previous Audit
18Stock Audit
19Any other area Requested by management