Area : Capex

AUDIT CHECKLIST CAPEX

Function/document tite !P
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Done
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"emar&'
Obtain the Capex budget for the financial year. Check if the actual
expenditure incurred is within the budget.
Obtain the CAPEX Policy of the company and check if all
additions, deletions, transfers, write offs are made in accordance
with the policy.
Obtain the listing of Additions deletions during the financial year.
!elect ma"or additions deletions from the abo#e listing and check
the following
Proposal
$ustifications
Appro#al
%uotes
Purchase Order
Entry into factoryoffice
&od#at entry if applicable
Capitalisation note
Accounting entries
'umbering of asset
(pdation into the )A register
En*uire into open CAPEX forms which are pending to be
completed. Ensured that they are not #ery old and obtained reasons
for the same.
Obtain the capital +,P listing and check the same for long pending
assets to be capitalised. Obtain reasons for the same. Ensure that
the correctness of classification of amount under appropriate
account heads.
Obtain the physical #erification policy of the company and check
adherence to the same.
Function/document tite !P
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Done
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"emar&'
,f the company does physical #erification in a phased manner as
per plan, ensure that the top management appro#es the same.
Ensure that the physical #erification is done as per plan.
Ensured that the company obtains confirmation from third parties
for assets held by them.
(nderstand the &ethod and manner of charging depreciation and
check compliance with accounting standards.
Obtain the insurance policies taken by the company and re#iew the
ade*uacy of insurance co#erage on fixed assets.
Checked whether the company correctly calculated the premium
amount payable on the sum insured based on the tariff rates.
Checked that the insurance premium paid is booked to prepaid
insurance account and the monthly charge is taken to re#enue
expense head -insurance account.. Ensured that Prepaid insurance
account is correctly stated.
Ensure that all assets owned by the company - both at the factory
premises and at outside locations. are ade*uately co#ered.
Ensured that the company has taken third party liability insurance,
&achine break down insurance, debri remo#al insurance apart
from the normal fire and burglary insurance.
En*uired into whether the company has taken a loss of profit
policy
Ensured the appropriateness of basis of calculation of sum insured.
/est #erified the correctness of calculation of sum insured and
ensured that they ha#e been done properly.
Ensured that all the asset ha#e been considered for insurance by
test checking the asset insured as per policy with the asset
appearing under the particular location as per fixed asset register.
Function/document tite !P
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Done
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"emar&'
Ensured that the insurance policies are renewed once the policy
period elapses. Ensured that there is no delay in renewing the
policies.
0e#iew ,nspection reports of insurance agencies and /ariff
ad#isory committee
1erify appropriateness and re#iew ade*uacy of safety e*uipment.
0e#iew of maintenance contracts entered into.
Obtain a listing of capital ad#ances as of &arch 23, 4555 and
re#iew the same for old ad#ances pending ad"ustment.
0e#iew system of capturing repair expenses asset category wise,
machine wise.
En*uire into the mo#ement of )ixed assets and re#iew the
procedures in place to control such mo#ements. Also check
appro#als for the same.
0e#iew system of monitoring retired assets.
En*uired into the system of reporting management information
and ensured that a proper &,! reporting is in place.
0e#iew the correctness of &,! reports.