CLOSE OFF MEETING FOR THE JANUARY TO JUNE 2015 INTERNAL

AUDIT OF BARMORE INVESTMENTS T/A OCEAN.
OPENING:
CLIENT NAME

: BARMORE INVESTMENT (PVT) OCEANS FOODS

AUDITORS

: PNA CHARTERED ACCOUNTANTS

DATE

: 18 SEPTEMBER 2015

TIME

: 11:37AM

PLACE OF MEETING

: 100A S. PARIRENYATWA (PNA OFFICES)

ATTENDEES
Mr J.W Ncube (CEO)
Mr T. Siwela CA (Z) (Chairperson)
Miss S. Tshabangu (Auditor PNA)
Miss M. Masuku (Auditor PNA)
Mr M. Thebe (Auditor PNA)
Miss S. Vuma (Auditor PNA)
Miss P. Moyo (minuting)
1. APPROVAL OF AGENDA
M.Thebe opened the meeting with a word of prayer. The chair highlighted
the agenda of the meeting. The CEO acknowledged his team’s dedicated
efforts towards the company. He further informed PNA that he has no
issues with the way the audit was carried out. He is aware that improved
audits result in improved quality systems and product quality
2. OBJECTIVE OF THE MEETING
i.

Issues that affected the audit

The CEO is overly impressed with the way PNA is carrying out their audits.
Revenue loss and tax related issues are his main concern.
ii.

Issues on the report to management

The CEO suggested that when managements’ incompetence is exposed
on reports, individuals involved should each be held accountable.
Management is expected to defend their faults not redirect them to the
CEO.
3. RECURRING ISSUES

There will be appropriate rectification of reports and accurate information at milling and stores.i. The company has introduced a new system on inventory checks where it records all raw materials and gives a summary at the end of each day.Siwela further informed the CEO that Cephas (Accountant) only discusses the same issues but ignores the core which is tax and allowances. Masuku explained that the Act states that. Incomplete Production Summary Report The milling company is vastly growing and there is an increase in demand and supply. Milling packaging improvement and handing of breakages has been sorted. The company will keep checking updates of this file so that it doesn’t face financial losses due to these tax penalties. if the person is registered and it’s a regular trade then they cannot withhold tax. M. the company should be aware that they will have a tax risk attached to that. Lack of Inventory Reconciliations between Production & Stores The CEO discussed this issue with Msibi (Bakery Manager). Zimra will require this documentation. iv. So the company will invest in adding more personnel. This will help keep track and lesson the risk of inventory items being misappropriated. Inaccurate Recording of Information Admin in charge should check all invoice books upon receipt before issuing them to avoid duplicated books. ii. but if it’s not a registered person. T. v.The company needs to look for registered traders. He is confident that they will adhere to all laid down procedures. T. Supplier Tax Clearance All suppliers have been asked to bring their tax clearances. Barmore Investments realises that efficient inventory checks ensures that capital is not tied up unnecessarily and protects production if problems arise with the supply chain. Asset tagging . The auditors stated that the door is widely open for any form of consultation and all tax invasion documents will be withdrawn when submitting Zimra documents. iii. Siwela informed the CEO that if informal agreements or structured deals are settled. vi. Vouchers without supporting documentation The audit recorded that all cash payment vouchers must have supporting documentation.

vii. it would be easy to track. Masuku informed the meeting that parastatals like GMB are exempted from tax but companies pay for every supply. Without any further ado. there should be a company procedure manual and it should be a policy which should be followed every time before each inventory count. the meeting adjourned. 6. The CEO requested the auditors to investigate and inform him on how other companies or parastatals are dealing with these tax issues. AREAS OF DISAGREEMENT i. ii. M.Siwela suggested that. The kiosk now has its own expenses. NEW ISSUES All bank and creditors reconciliation statements are available. Inventory Count Procedures T. . The auditors were asked to give the company any suggestions they had concerning tagging and a follow up will be done. Tinashe (IT technician) is set to configure it. The CEO assured the meeting that he will do a follow up with Clive (Systems Admin). The company banks with CBZ and it is straight forward payments. 4. This issue will be reviewed. The next audit was scheduled to begin after 6 months. The fiscal device is now available but it is not yet configured. 5. before the main audit resumes and not to be off the radar for a long period. T Siwela also suggested that it would be advisable to use RTGS. as it is easily traceable.Barmore investment has assets which are not yet tagged. She further suggested that she will look for any loopholes regarding tax. CLOSING REMARKS The auditors were advised to come regularly to collect data.