You are on page 1of 32


I General

Particulars Checked By Remarks

A Permanent Information
Name of Auditee -
Organisation Type -
Period under Audit -
Unit Head -
Audit Team -

B Documentation
1 Proper filing of all documents
2 Proper coding of all files
3 Proper indexation of all documents in each file
4 Original documents related to land, building, fixed asset and vehicle etc are
kept in the custody of the Unit Head.
5 Unit head ensures proper security and safety measures for original and
important documents to avoid theft, fire, rain or any other peril of whatsoever
6 All important documents and correspondence are stored in soft format (PDF-
Scanned Format) with proper listing

C Secretarial
1 All the secretarial documents and the documents related to Registrar of
Companies (ROC) are kept at the registered office of the Company.
2 All types of resolutions to be passed are drafted by the Secretarial department
3 The original signed copy of the resolutions passed are kept by the secretarial
department at the registered office and the copy of the same are sent to the Unit
Head for his records.
4 It is the responsibility of the Unit Head to intimate all the concerned
departments about the change in designations or change in directorship /signing
authorities or any other relevant change that need to be informed time to time
on behalf of the company.

5 Minutes book and statutory registers to be kept and updated by the Secretarial
staff. at the registered office.
D Safety And Security Measures
1 Fire safety measures such as fire extinguishers, fire alarms and sign boards for
“NO SMOKING” zone are kept
2 Doctor, Fire brigade, Police, bus and railway inquiry and higher management
contact numbers are displayed at each desk.
3 A list of phone numbers of all the employees is displayed at each desk.
4 First aid kit is kept at easily accessible places
5 All the drawers are properly locked and a bunch of duplicate keys is kept with
the unit head.
6 Safety training to labour and official persons.
7 Emergency medical training to staff by doctors.
8 Detail of Work stations is displayed at each desk in a proper format so that the
complete information about the employees' name & designation can be shown.

9 Hardware security- no person is allowed to carry the system or take files from
the system with prior permission of Immediate Boss.
10 All the important files/documents kept in soft copy is secured through unique
file password.

E Legal
1 All the original documents related to Intellectual Property Rights (IPR) i.e.
Trademarks, copyrights, patents, ISO certificates. are kept with the Unit Head.

2 The original documents, notices etc filed by the legal advisor / advocate are
kept by the Unit Head.
3 The proceedings of the same are summarized by the Unit Head with proper
attachments and account statements.
4 Listing and documentation of legal and IPRs files is done as per points
mentioned under Heading- DOCUMENTATION.

F Outdoor & Vehicle

1 Any employee leaving the office during the official hours shall fill the duty
pass and get it signed by the authorised person
2 The duty pass duly signed is listed and documented in a separate file
3 Separate log book is maintained for each vehicle, which is timely updated
4 The log book is checked, verified and signed by the Unit Head on daily basis
5 Any employee using his/her own vehicle for official purpose is provided with
the conveyance allowance as per the limits decided by the Unit Head.
II Human Resource

Particulars Checked By Remarks

Check that details relating to manpower requirement is informed to the
management “1month” well in advance.-
• No. of Executive required
• Kind of Executive required
• Qualification required
• Experience
• Salary Slab.

B Interview
1 Check that interview is taken by a committee appointed for the purpose,
comprised of minimum three members-
• One Functional Head – Respective departmental head.
• One Higher official – Unit Head
• One HR Manager /Executive
2 A proper form provided by the HR Executive is duly filled by the candidates.

3 The interview is conducted at Unit level for first phase and the short listed
candidates are interviewed by the higher management for final phase.

C Letter Of Offer
Offer letter is given to the selected candidates within 2 days for their acceptance

D Appointment
Check that
1 Appointment letter is given within 3 days of joining.
2 Personal data form/Service book is filled within 3 days of joining.
3 Terms and conditions associated with appointment presents a clear picture.

4 Complete code of conduct is provided to the candidate who thoroughly reads it

5 Code of Conduct shall be updated timely

E Training & Development
1 Probation period of 0-3 months is taken into consideration depending upon the
work requirements.
2 Lock-in-period of one year on completion of probation period.
3 Performance appraisal during probation period and thereafter is done by the
immediate boss and HR Executive and then the same is reported to the higher

F Legal Compliances Relating To Hr-

1 Check for Applicability of various acts and its due compliance by HR
• The Apprentices Act,1961
• The Employee’s Provident Fund and Miscellaneous Provisions Act,1952
• The Employee State Insurance Act,1948
• The Factories Act,1948
• The Minimum Wages Act,1948
• The Payment of Bonus Act,1965
• The Payment of Gratuity Act,1972
• The Payment of Wages Act, 1936
• The Trade Union Act,1926
• The Workmen’s Compensation Act,1923
• Factory and Boilers Act
• The Industrial Disputes Act, 1947
• Contract Labour (Regulation and Abolition) Act, 1970
• The Industrial Employment (Standing Orders) Act, 1946
• Air (Prevention and Control of Pollution) Act, 1981
• Water ( Prevention and Control of Pollution) Act, 1974
• The Environment (Protection) Act, 1986
• Noise Pollution (Regulation and Control) Rules,2000
• The Personal Injuries (Compensation Insurance ) Act, 1963
2 All the required registers and documents as per above applicable acts is
3 Various challans are paid on time (i.e., Challan for PF has to be paid by 15th of
next month and Challan for ESI has to be paid by 20th of next month)
4 Consolidated HR records are sent to the HR head for the group including
details about all the compliances made by the Company by 25th of next month
in the prescribed format.

G Accidents & Causalities

1 Report of the accident is prepared on the same day in the prescribed format

2 Legal Provisions applicable are complied with.

3 Facility of free medical check-ups is provided to the employees at regular

H Attendance
1 Daily attendance is taken either in morning or evening in Attendance Register

2 Separate register is maintained for daily workers & staff on probation

2 This register is checked and signed by two Executive (i.e. by HR Executive and
Unit head)
3 Gate pass register is maintained. Entries relating to visitors is made in the
register and at the end of the day it is verified by one authority.

I Salary And Wages Procedure

Check for-
1 Pay-scale and salary structure of the labour & staff.
2 Calculations relating to allowances, deductions, perquisites etc according to the
3 Overtime & Idle time workings
4 Salary payment by 10th of next month.
5 Proper workings of salary sheet and its authorisation thereon

J Leave Procedure
Various leaves taken by employees are classified in Paid, Casual, Sick and are
allowed as per the HR Policy

Proper notice or salary in lie thereof before resignation/termination as per HR

1 Any grievance relating to workplace is informed to immediate bosses or the
concerned unit head who further reports it to the higher management.
2 Reporting is done both in verbal and written format.
1 After completion of 18 months of service, promotion or hike in salary on the
basis of performance appraisal and as per management decision.
2 Bonus amount would be calculated/decided depending upon the employee
performance and at the discretion of management.
3 Employees should submit Self Appraisal Performance Report on quarterly
4 Employee birthdays and anniversaries is given due consideration one Greeting
card should is sent on behalf of the Company.
5 A suggestion or a compliant box is kept and it is the responsibility of the HR
Department to check the same and reporting of the same to the unit head.

Expenses are reimbursed to the employees incurred for official purposes as per
the decision of management committee.
III Purchase & Inventory Management

Particulars Concerned Checked By


A Material Control
Check proper records for-
1 Availability of materials JB
2 Control over the investment in material JB
3 Reasonable Prices JB
4 Wastage Control MS/JB
5 Control over the spoilage and obsolescence MS/JB

B Purchase
1 There should be at least two personnel for the purchase department with rights AM/JB
and duties as per the Purchase Policy
2 All the purchases are properly authorised as per the policy
Upto Rs 5000/- Purchase Manager
Revenue purchase > Rs 5000/- Unit Head
Capital purchase > Rs 25000/- BOD

C Requirements
1 Requirement of the Stores Department is in accordance with the production
schedule and on the basis of need of the particular item whether it is capital or
revenue item is forwarded through Purchase Indent in 2 copies

D Vendor Registration
1 The Purchase department registers the potential suppliers according to the
required items in the prescribed format.
2 Check proper maintenance by Purchase manager of master list of the suppliers

E Selection / Assessment of the suppliers

1 Check for following aspects while selection of suppliers-
• Quality
• Price
• Terms / Conditions (availability etc.)
• Transportation Cost
• Discount
• Credit Facilities
2 Final selection is vetted by a Team consisting of Purchase Manager, respective
departmental head, finance / accounts person and if required the technical
person of the company.
3 Tender is raised in the specified format for specific purchases along with terms
& conditions of the company
If any other method is followed, mention it-
4 Proper analysis of the quotations invited in the prescribed format
5 Proper explanatory note is prepared to state the reason for selection of
particular supplier by the selection committee
6 Documentation of the analysis summary sheet with the PO

F Execution of Emergency Purchase

1 Check for following points-
• Reasons / Conditions
• Time Basis
• Price
• Dealers
• Others – Credit Terms, Transportation, Taxation etc.
2 Finalised by a Committee comprising of-
• Purchase Officer
• Finance / Accounts Officer
• Respective Department Head

G Purchase Order
1 PO is prepared in 2 copies in the prescribed manner and is duly authorised

2 Regular follow up of PO for timely receipt of materials

H Master List for Purchase

Check proper maintenance by Purchase manager of following master list of the

I Receiving and Inspection of the Material :

1 All supplies at receiving department.
2 Check against Purchase Orders.
3 Inspection of material
4 Proper delivery of goods to the concerned department / store.
5 Proper authorization by the receiving authority.
6 All returns, shortage, rejection must be informed to the purchase as well as to
the accounts department so that the payment to / debit notes on the suppliers
should be made / raised accordingly.
7 Goods Receipts Notes (GRN) should be endorsed to accounts and sent to
purchase department.
8 Purchase orders file should be maintained properly.
9 Receiving, unloading and unpacking the material delivered by the suppliers
under delivery challans/ Invoices.
10 Checking quality of the material received by the Quality control department.

J Stores/Inventory Management
1 Proper counting of the material received and recording and classification of the
2 After receiving of the required material the invoice should be supported with
the Material Inspection Report and sent to the accounts department.
3 Proper authorization and verification of the MIR by the purchase manager as
well as the higher authority.
4 Control measures i.e. stock taking & supervision of the material received
should be done on periodic basis (Monthly / fortnightly / weekly).
5 Separate authority for purchase and stock taking.
6 Continuous stock verification.
7 Shortage/excess of the material is reported to the purchase as well as the
production department.
8 Any discrepancies / damages must be recorded and reported to the concerned
9 There should be a proper control over the Scrap / Wastages / Damages/
Defectives etc.

K Classification & Coding of Material

1 Proper classification as construction material, consumable stores, spare parts,
tools etc.
2 Authentic code no. is allotted for proper distinction / description

L Material Control System :

Analysis of Material / inventory according to their value, movement, quantity
· ABC ( High : Medium : Low value )
· FSN ( Fast : Slow : Non moving )

M Inventory Records:
1 Daily Updation of Stores Ledger
2 Check Stores Ledger for proper stock keeping, recording material receipts,
issues and balances
3 Issue of material from stores in proper format
4 In case of material transfer from one job to another job, the material transfer
note will be prepared in 2 copies
5 Scrap / wastage should be recorded and reported in a proper format


To be followed from 01-01-10

>5000- PO to be made from 01-01-10
IV Production

Particulars Checked By Remarks

A General
Check that
1 Proper reporting is done by assistants to respective division in charge & further
reporting by in charge to immediate boss
2 Proper listing of products with their respective codes and brand names
3 The record for no. of labour required to work at each machine for standard
production is maintained as per given format
4 Calculation of idle time is done on percentage basis and in case the idle time
exceeds 25% the reporting of the same to the higher management on
daily/weekly basis with proper reasons
5 Calculation of overtime and recording of the same is done by the Production
Manger and he further reports it monthly to the Unit head and the HR
coordinator of the unit.
6 The total area covered by the production floor with its utility including storage
for raw and finished goods is recorded in prescribed format.

B Machinery
Check that
1 Fixed Assets Register is maintained & updated in the prescribed format
2 Proper coding for each capital asset
3 New Machinery-
a The requirement of new machines can arise due to following reasons:
• Increase in demand
• Change in technology
• Change in product line
• Increase in production
b Proper assessment is done by Production Manager/In charge approved by the
Unit Head
c Requisition to the purchase department is sent for further processing as per
purchase and inventory policy of the Company based on Quotation Analysis.
d The new machines is properly installed in supervision of the Technical person
and the Unit Head and the reporting of the same is done to the higher
management after installation.
4 Capacity Analysis of machines is done in the prescribed format
5 The upkeep and maintenance of machine is done on regular basis so as to
increase their life and proper track of the machine overhauling is maintained in
the prescribed format.
6 Separate machine log book is maintained and updated
7 User manual/instruction kit of machines is displayed through charts and
hoardings at various places of factory.
8 Machine maintenance chart is displayed and updated for each machine near by
the machine itself.
9 Proper reporting of machine breakdown/shout down is done by production in
charge to unit head with valid reasons
10 Shut down for more than 3 hours is reported to Unit Head which further
reports to higher management

C Raw material
Check that
1 Need assessment is done by the Store-keeper and the authorization is done by
the Production Manager/In charge.
2 Purchase of raw material is done as per the Purchase Policy
3 The Quality Controller properly verifies the quality of the raw material by
taking samples and records the same in prescribed format.
4 In case the quality of the raw material is not of good quality, the reporting of
the same is done to the Unit Head and higher Management .The whole lot of
raw material is stored separately and Material Return Form is filled by the
Store keeper, duly verified by the Quality Controller.

5 The raw material to the production is issued by the storekeeper/store in-charge

after signing the issue slip. The production in-charge give its receiving through
its initials on the issue slip after properly weighing the material issued.

6 The issue of raw material for production is on the basis of production plan
which is based on demand & availability.

Method of production followed by Company-
• Job Method
• Batch Method
• Flow/Process Method
• Uniform Method
E Finished Goods
Check that
1 The production Manager verifies the final product according to the standard
production plan and records the same with deviations, if any in respect of
quality and quantity both.
a Quantity Analysis is done by the Production Manager as set out in master chart
of the particular product.
b Quality Analysis is done by the Quality Controller for the finished goods. The
Master Card for the quality check is pasted at each such place where the
production process is carried on.
2 Samples taken for above purpose are recorded in the quality check register.
Verify the no. of samples taken per lot of production.
3 The finished goods inventory is maintained as per the Purchase and Inventory
Policy of the Company.

F Wastage
Check that
1 Proper classification of wastage is done into Normal & Abnormal.
2 Classification as abnormal is done if wastage is occurred due to the following:

• Error in machine
• Raw material quality issues
• Power cut with prior information
• Labour mistake
• All other wastage which is not normal
2 The wastage is properly recorded in the wastage register/sheet on daily basis
along with proper reasons and it is shown in the production MIS in the
prescribed format.
3 The monthly average wastage is properly calculated and if the wastage exceeds
the standard wastage than necessary steps to reduce the wastage are taken.
V Sales Coordination

Particulars Checked By

A Recording Sales Order

1 All the orders received are recorded in Sales Order Register in the prescribed
2 Check for hard copy of orders received through email

B Price List
Complete & updated price list for each product is kept with Sales Coordinator
2 The revision of price list is authorized and verified by the Unit Head and
informed to the higher management.
3 Revision of the prices is, as per industry & market factors, and informed to the
Sales Coordinator and Dealers/Distributors by the Unit Head

C Invoicing
1 Check that invoice is as per latest price list
2 Also check that it is according to the provisions of Excise, VAT/CST etc.
3 Credit terms & interest thereon & maximum & minimum credit period
4 Discount schemes
5 Check for any changes in the invoicing software and its reporting to higher

D Dispatch
1 Check that goods are removed as per applicable Excise Rules.
2 Also check Sales coordinator's responsibility that-
• The goods are properly checked as per sales order received.
• The duties and taxes are properly paid / charged.
• The transportation cost is accounted
• Proper weight / measurement done.
• Gate pass / Outward note prepared.
E Verification of Finished Stock
1 Inventory of Finished Goods kept by Sales Coordinator
2 Physical Verification of Finished Goods on monthly basis by Manager
(Commercial) with proper recording of same in hard copy
3 Further, bifurcated as per the moveability and the value of the same .i.e. FSN,
ABC analysis.
4 Check for
• Proper utilization of the space.
• Proper coding
• Precautionary measures
• Arrangement on the basis of moveability.

F After Sales Service

1 If any after sales services are given by the unit, then the same shall be properly
recognized and recorded.
2 After sales queries shall be handled by the sales coordinator.
3 If action is taken for solving the query then it shall be as per the rules of the
unit and shall be informed to the Unit Head.

G General
Verify age-wise analysis of debtors done by the Manager Commercial on
monthly basis

VI Marketing Policy

Particulars Checked By Remarks

A Marketing Process
Verify that the company is following prescribed marketing procedure

• Situation Analysis
• Market Strategy
• Market Mix Decision
• Implementation

B Situation Analysis
Check that following procedure is properly followed
1 Identifying customer needs & company's resources to fulfill those needs

2 SWOT Analysis as per the prescribed format

3 Market research conducted by Marketing Manager and reporting same to
Production Manager/ Higher Management
4 The budget for market research decided by Unit Head with prior approval
of Higher Management

C Marketing Strategy
Check that following procedure is properly followed
1 Product Life Cycle - stage
2 Pricing Decision
3 Market study of product - seasonal demand
4 Authorisation of extra discount
5 Prospective buyers- identified by proper coordination from dealers
6 Prospective marketing territory analysis- unit head
7 Verify the Costing method used by Unit Head
8 Sanction of discount by unit head

D Marketing Mix Decision

Check that following procedure is properly followed
1 Proper classification of present brands as per size, quality etc
2 Verify the approval of higher management for introduction/exit of any
3 Proper market research before launching new product
4 Market survey to find potential market/product
5 Competitors analysis to know market position
6 Packing - Packing Standards & its inclusion in cost
7 Pricing - Revision after considering Market Analysis, Raw Material Price
by Pricing Committee as per Marketing Policy
8 Distribution Channel (Place)/Placement:
i Channel-
Super Stockiest - Distributor - Wholesaler/Retailer
ii Verify the selection procedure as per respective policy-
• The Financial Position of the dealer
• Goodwill in the market
• Credit Worthiness
• Past Relations / records
• Market Accessibility etc.
iii Appointment after proper application in the prescribed format
iv Security / indemnity bond / guarantee signed by the dealer.
iv Regular follow up through marketing personnel
v Margin of distributor approved by Unit Head
vi Reason for Sales Return- Payment or Quality sent to higher management

9 Product Promotion
i Verify the approval of budget by the higher management after it is set by
Finance Manager & Unit Head
ii Also verify various schemes given to traders & consumers, set by
marketing manager for its authorisation

E Implementation & Control

Check that following procedure is properly followed
1 Proper hierarchy for Marketing Control-
BOD - Managerial Personnel - Unit Head - Marketing Manager - Sales
2 Sales Control-
i Check weekly/monthly/quarterly/annual sales targets set product wise in
the prescribed format
ii Reporting of the SRs to Marketing Manager directly on weekly basis,
having complete reporting of each SR separately for every product
individually, comprising of daily detail in the form of DSR (Daily Sales

iii Monthly sales appraisal shall be done by the Marketing Manager for all
the SRs working under him in MSA (Monthly Sales Appraisal Form)

iv Check Turnover & Cash discounts as per applicable slabs

VII Tour & Travel Allowance

Particulars Checked By Remarks

A Reimbursement Grades-
1 For Cities
A - All metropolitan & Capital cities
B - Cities with population < Rs 3Lakhs
C - Cities with population > Rs 3Lakhs
2 For Employees
Special Grade - Unit Head & Higher Management
Grade I - Regional Manager/Marketing Manager
Grade I - Functional Manager/Marketing Executive

B Reimbursement of Expenses
1 Verify that reimbursement is as per Tour & Travel Policy, and claims are
submitted with Tour Progamme approved by the Immediate Boss/Unit Head

2 Other reimbursement are as per discretion of Unit Head with proper justification

3 Verify the correctness & authorisation of claims

4 Verify limit for advance against tour at Rs 5000 and its adjustment later
5 Verify proper supportings i.e. travel tickets, hotel bills etc with the travel expense
reimbursement bill.
VIII Taxation

Particulars Checked By Remarks

A Check for applicability of various Acts

1 Income Tax
4 Excise Duty
5 Service Tax

B Payment
Check that
1 Payment is made before due date by Authorised person
2 Proper due date chart is maintained and displayed.
3 The Unit Head intimates the Asst Taxation Manager about the statutory
payments through mail/hard copy before 3 days of the due date.
4 Copy of challans is sent to Asst Taxation Manager by 10th of next month
5 Monthly consolidated report in prescribed format for all statutory payments is
forwarded to Asst Taxation Manager
6 All the financials are certified by Unit Head

C Filing & Checking of Returns

Check that
1 All the challans and returns are submitted directly by the unit.
2 The same is verified by Asst. Taxation Manager before filing and confirmation
3 All legal compliances are fulfilled by Unit Head and the same is informed to
4 The following returns are timely filed
i e TDS Return
ii Excise Return:
iii VAT Return:
iv Service tax Return:
v ESI & PF Return:
D Scrutiny/ Audit objection / Query from Govt. Department
Check that
The information of the notice received by the unit from the department (i.e.
Income Tax, Sales Tax etc.) is sent to the Asst Taxation Manager by the Unit
Asst Taxation Manager checks the status of scrutiny/ audit objection/ query etc.
Asst Taxation Manager prepares the reply of the order / query received by
gathering information requirements from Unit Head and send a copy to Unit

E General
Check that
1 Any amendment in the applicable act is informed by the Asst Taxation
Manager to the Unit Head with the due date of applicability.
2 Unit Head follows the Notification / circular (Direct & Indirect tax) issued by
Govt. when informed by the Asst. taxation manager.
3 The following certified details are provided by Unit Head to ATM -
i Challan of tax payment
ii Ledger of the account.
iii Account statement of party / Purchase / sales etc.
iv Rate of TDS/ VAT/ CST/ Excise Duty / Service tax / PF / ESI
v Statement of VAT-7,VAT-8 & VAT-9
vi Details of statutory forms (VAT forms) used during the period.
vii Ledger of VAT / Excise / Service Tax
viii Return shall be Certified / verified by Unit head.
ix Return shall be authorized by taxation Dept.
x Return shall be filed on due date
IX Finance

Particulars Checked By Remarks

A Stock
Check that
1 Age wise analysis of FG is done on monthly basis by the stores keeper and
authorised by Manager Commercial
2 Physical verification is done monthly by unit staff
3 Proper classification of Non Moving Stock is done by unit
4 Above records are verified by Manager Commercial and reported to Unit Head,
which further reports it to Finance Officer

B Cash
1 Physical cash in custody of Accounts assistant at least once a month, prefer
surprise checks
2 The minimum & maximum cash balance at any point of time is Rs.10,000 and
Rs. 1 Lac respectively
3 That physical cash is verified by person other than the person in who's custody
cash is kept, which is further approved by unit Head
4 Payments > 20000 are made through cheque
5 That Assistant finance manager's surprise physical verification of the cash,
done at-least twice a month
6 Cash Withdrawal Note for withdrawal of cash from bank which is authorised
by Unit Head

C Bank
Check that
1 Minimum bank balance at any time is Rs 5000
2 Balance above a specified limit is invested in FD by approval of AFM
3 Monthly BRS is prepared by Mang. Comm and is sent to AFM after Unit
Head's authorisation
4 The Cheque Details Register maintained by Ass. A/cs and vetted by Unit Head

5 The acknowledgement of the cheque received from the third party and the
cheque issued to the third party
6 Proper recording of Bank Charges on monthly basis and informing the same to
Unit Head and AFM
D Debtors
Check that
1 Age wise analysis on monthly basis is done by MC and the same is
reported to Unit Head who forward it to AFM
2 Credit period & interest thereon as per Sales & Finance Policy
3 Quartly balance confirmation & turnover ratio is done by MC & reported to
Unit Head

E Creditors
Check that
1 Payment is made through cheque only
2 Maximum credit period of 30 days or discount, as the case may be is availed

3 The Creditors Turnover Ratio is calculated on monthly basis

F Real State Property

Check that
1 Proper listing of documents is done in the prescribed format
2 All original & chain doc are kept in custody of Unit Head
3 Physical verification is done by person appointed by UH & Managerial
Personnel and reporting of same to AFM
4 Search Report is obtained at the time of purchase.
5 Insurance of Property- documented with Unit Head, Copy is kept with A/cs

G Investments
Check that
1 Proper Investment Register for recording of investments and its verification by
UH is done
2 New investments are made only after proper approval by AFM
3 Proper investment note is prepared by the Finance Officer.
4 The original documents of the investments are secured by the Unit Head

H Loans & Advances

Check that
1 Proper requirement assessment is made by UH
2 Comparative Rate Analysis is done by UH, which is approved by the BOD

3 Proper documentation & A/cing is done by FO

4 Loan to Staff is as per Loan Policy
X Accounts

Particulars Checked By Remarks

A Vouching
Check for
1 Separate voucher for expenses, sales (invoices) and
Separate vouchers for cash, bank and other transactions.
3 Signature of Maker, Checker & Authoriser as per slab
4 Proper documentation of each voucher
5 Proper verification each voucher before entry

B Sales
1 Following documents to be verified before invoicing-
i Previous Accounts status of Debtors
ii Status of finished goods
iii Sales Order Received
iv Goods Outward Note/ Gate Pass
v Sale Price as per the current price list
vi Discount as per scheme
vii Proper Duty / Tax Structure
2 Sales bill are to verified before dispatch by Excise personnel

C Purchase
1 Following documents to be verified before revenue
i Price Quotations
ii Purchase Indents
iii Purchase Orders
iv Goods Inward Note/ Gate Pass
v Raw Material Inspection Report
vi Taxation/ Duty Structure
2 Authorisation as per slab
3 Following documents to be verified before capital purchases-

i Price Quotations
ii Purchase Indents
iii Purchase Orders
iv Goods Inward Note/ Gate Pass
v Taxation/ Duty Structure

D Payment To Employees
Following documents to be verified before payment
i Salary Slab (As per HR Policy)
ii Proper calculation of deductions /allowances/ perquisites.

iii Calculation of PF
iv Leave taken by employee (As per HR Policy)
v Loans and Advances given to employees
vi Signature of the preparer and verifying authority on the salary
sheet.(As per HR Policy)

E Loans & Advances

Check for
i Duly approved application
ii Terms of Loan
iii Finance Policy

F Other Payments
Verify for
1 Revenue Stamp for cash payment > Rs 5000
2 Payment > Rs 20000 through cheque
3 Payment to creditors
i Terms of payment
ii Mode of Payment
iii Authorisation

G Payment to Govt Authorities

Check for
i Due Date
ii Workings by Functional Heads
iii Proper Cheque/Challan details
iv Authorisation
v Mode of Payment
H General
1 Fixed Asset Register - Maintenance & Updation
2 Physical verification on Quarterly basis - cross verified
internally by unit staff
3 Information of the above is sent to AFM
4 Daily MIS shall be prepared on following basis :-
ii Per Day Production
iii Per Day Sales
v Daily Investment Details
vi Daily Machine Breakdown
vii Daily cash inflow – outflow
5 The Daily MIS (Management Information Systems) shall be
sent to the FM by next day
6 Monthly Consolidated MIS to AFM-
i Monthly production Detail of the unit
ii Monthly turnover of the unit
iii Monthly bank reconciliation detail
iv Monthly fund flow
v Monthly details of Challan /returns submitted to the various