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Purchases Audit Program

Purchases Audit Program

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Published by varghese2007
Internal audit program
Internal audit program

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Published by: varghese2007 on Jan 21, 2010
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04/01/2013

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Internal Audit Department Audit Program - Purchases W/P Ref: Company Date: Serial Audit Procedure Objective 1- General 1 Obtain

the policies and procedures for purchasing 2 Obtain a copy of organization’s current signature authority matrix. Ensure that the matrix is up-to-date for authorized personnel, title/position vs. authority, dollar/volume limits, and override procedures (and related down-stream controls; subsequent reporting or escalation to higher-limit personnel) 3 Obtain the signature authorization list. 4 Check if the list of approved suppliers is maintained regularly 5 Determine if the function of authorization, ordering and receiving is adequately segregated 6 Verify the implementation of the computer system 7 Verify the implementation of a current vendor performance rating system 8 Determine whether there is a policy with respect to acceptance of gifts from supplier. 9 Check if the purchasing agents or buyers are periodically rotated among purchasing categories to ensure independence Objective 2- Ordering 10 Ensure whether a requisitions logbook is used to log all requisitions serially. Auditor: Auditee: W/P Ref.

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Internal Audit Department Audit Program - Purchases W/P Ref: Company Date: Serial Audit Procedure 11 Scrutinize requisitions file for any duplicate or missing requisitions. 12 Check the completeness of the requisition. All fields should be completed. 13 For each purchase determine whether a requisition is prepared by the requester and approved by the Dept. Manager or committee. 14 Test the efficiency of the processing process i.e. from the time the requisition is received until the time the order is processed i.e. compare the dates of the selected purchase orders with those of the purchase requisitions. Auditor: Auditee: W/P Ref.

Done

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Recommendation

Ensure that all imported purchases are insured. 20 Select purchases orders and check the authorization to ensure it’s approved by appropriate level of management 21 Investigate long outstanding requisition orders. Objective 3- Goods Delivery 22 Compare details on the invoice/delivery note to that detailed on the quotations, LPO and requisitions: . Services requested, . Prices, quantities specified, . Supplier details, All information should be the same in respect of the above

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Internal Audit Department Audit Program - Purchases W/P Ref: Company Date: Serial Audit Procedure 23 Determine if the receiving person signed the delivery note/invoice as evidence of checking items received 24 Ensure the following duties are segregated between ordering & receiving. 25 Check for the date on the invoices should be after that on the requisition, quotation and purchase order Objective 4- Payment 26 Ensure pre-numbered payment vouchers are used. 27 Ensure payment vouchers are properly supported by original supporting document & approved. Ensure supporting documents are checked & stamped for payment. Ensure the following duties are segregated between: - ordering, receiving & AP. - Check preparation, payment approval & signing of checks. Ensure payments are made only in the due date? Determine if the advanced payment is closed right Auditor: Auditee: W/P Ref.

Done

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