ACC-215

Assignment-1
Topic: AUDITING AND CORPORATE
GOVERNANCE
Name: Amandeep Singh
Reg.no:12014541
Roll NO: RQ2018A04
Date of allotment: 7Feburary, 2022
Date of submission: 16Feburary, 2022
Faculty member: Lipika Dhingra
COMPANY NAME : Automotive Stampings and Assemblies Limited
 INTRODUCTION

Automotive Stampings and Assemblies Limited (ASAL) a TATA Autocomp Systems

Limited subsidiary and a part of TATA Enterprise was incorporated as a Public Limited Company
under the Companies Act, 1956 on March 13, 1990 as JBM Tools Limited and subsequently, on
August 1, 2003 the name was changed to Automotive Stampings and Assemblies Limited. ASAL
manufacture sheet metal components for passenger vehicles, commercial vehicles, and tractors.
Presently ASAL operates two state-of-art Plants – one at Pune, Maharashtra and the other at
Pantnagar, Uttarakhand. Some of the Industry leaders and prestigious companies are our
application partners viz. Tata Motors Limited, General Motors, Fiat, Piaggio, Ashok Leyland to
name a few.

VISION

To be amongst the Top 5 Indian Auto-component companies, delivering

value to all stakeholders.

MISSION

Differentiation through Safety, Quality and Constant Innovation.

Board Of Directors

Designation
Name
Mr.Pradeep Bhargava Chairman
Mr.Bharat Parekh Director
Mr.Sanjay Sinha Director
Mr.Deepak Rastogi Director
Ms.Bhavna Bindra Director
Mr.Arvind Goel Director
Mr.Prakash Gurav Director
 AUDIT PROGRAMME

Automotive Stampings and Assemblies Limited (ASAL)

Internal Audit Department
Audit Program for original equipment manufacturer (OEM) Qualification Audit Work Program
Audit Scope: This sample audit work program focuses on processes and controls a company
may use to select, qualify, approve and maintain original equipment manufacturer (OEM)
customers. Work steps review customer qualification attributes, customer master file controls,
standard forms, authorization and sign-off, cycle time, and related issues.

Audit Objectives: This document can be used as a general guide to understand the OEM
qualification process. Organizations should continuously update and monitor the processes
included in this document to ensure that it reflects business operations.

Risks
 (OEMs) are always exposed to business critical risks from unforeseen supply chain
vulnerabilities and disruptions.
 The lack of transparency and inability to communicate in real time with their sub-
suppliers.
 OEMs that have a more established, more mature risk culture
 Recorded drop in volume and this had an adverse effect on sales.

Planning procedures Done by Date W/P Ref

1. Prepare an audit engagement letter and distributeto

appropriate management.

2. Hold an opening meeting with management.

3. Update the Work Program based on changes to

the regulation or prior audit recommendations.

Review Procedures
Policy/Procedures

1. Following the OEM procedures is the best way to

achieve complete, safe, quality repairs. This could
include vehicle specific repair information, or general
vehicle maker information. Deciding on the best
approach, however, may have a few steps, including
the following:
a. First and foremost, always refer to the body
repair manual for the make, model, year, and
part in question
b. If the information doesn’t exist, the next step
would be to refer to any OEM-specific
published position statement or general
procedure.
c. If there is no vehicle-specific repair
 information and no OEM published position
statement or general procedure, the last step
would be to look for I-CAR published best
practices. Published I-CAR best practices are
inter-industry developed and vetted
guidelines.
2. Original equipment manufacturer (OEM) guidelines
and repair standards.
Four ways to quickly improve repair decisions:-

a. Start with the right parts. Using genuine parts

relieves repairers of guesswork because they are high
quality and are precisely manufactured for the best fit
and finish possible, helping to reduce your cycle time,
comebacks and costs.
b. Learn from the best. Knowing and learning the
OEM’s vehicles inside and out by participating in
interactive, hands-on instructor-led training is
beneficial to any repair facility from knowing the grade
of steel being welded in the vehicle to the correct paint
application process.
c. Source parts quickly and efficiently. A
streamlined parts ordering system such as OPS (Overall
Parts Solution) or Auto Parts Bridge will help repairers
save time and money. They also give technicians the
confidence to be able to schedule repairs accordingly
and notify customers when to expect their vehicle repair
to be finished
d. Have the right resources: Since no two repairs are
identical, it’s so important to have the right resources to
help you build the best repair plan.
3. Access to information issues

Training

4. OEM that has a dedicated training department who

will engage with you to analyze your true needs.
a. Developed specifically for each of your floor
disciplines: operations, maintenance,
controls.
b. Training plan is provided with any formal
training program. Ask for a written training
outline/structure of what will be covered
c. Every training program should focus
on safety. Each procedure that is explained
or demonstrated needs to be done with an
emphasis on how to safely perform that task.
d. Balance of both classroom and hands-
on/machine-side training.
e. Additional training tools add to the overall
effectiveness of a training program
f. OEM who will collaborate with you to
customize a training program to the specific
skill level of your team members.
Identification of OEM

5. Review the process used by management to identify

all OEM, including new hires and transfers.
6. Obtain a copy of the current Registry from the
Program Administrator.
a. Compare the registry OEM names to a
current Organizational Chart. Determine if
any employees who may take OEM training.
7. Run a report of all files and oems training for the last
ending date to determine which employee took the
application
a. Run a report of all applications, summarizing
the count of applications by teller ID.
b. Run a report of all OEM trainer, summarizing
the count of applications by teller.

Registration

8. Review the process for registering a OEM.

a. Determine that there is a process in place to
validate the information on the Registry to
credit union records.
b. Review the process for performing criminal
background history checks for employees,
determine that procedures exist for how to
handle the checks that indicate criminal
activity or other civil or disciplinary action that
may prevent them from being registered as an
OEM traning.

9. Also review the process to renew registration

(between Nov 1 and Dec 31 each year if initial
registration occurred more than 6 months prior).
Determine whether adequate documentation is
retained for confirmation of registration.

10. Document and evaluate the process to identify

changes to information (employee is
terminated/hired, change in employee name,
information provided becomes inaccurate,
incomplete or out of date) and update the registry
within 30 days.

11. Using the CU Registry:

a. For a sample of employees,
• Determine that the employee has
provided written release of public
information and criminal background
information to both BCU and the registry.
• Determine that the employee has
attested to the correctness of all
information provided.
• Trace registry information to HR records
to validate the informationis accurate.
 b. Determine that there are no terminated
employees on the Registry listed as still
representing the CU (within last 30 days).
c. Determine accuracy of CU Registry
Information.
i. Name, main office address, and
business contact information
ii. Internal Revenue Service Employer
Tax Identification Number (EIN)
iii. Research Statistics Supervision and
Discount (RSSD) number, asissued
by the Board of Governorsof the
Federal Reserve System
iv. Identification of its primary Federal
regulator
v. Name(s) and contact information of
the individual(s) with authority to act
as the credit union's primary point of
contact for the Registry
vi. Name(s) and contact information of
the individual(s) with authority to
enter the information required, and
who may delegate this authority to
other individuals.

Disclosing Unique Identifier

12. Determine how OEM trainer present the unique

identifiernumber to members when required:
a. From the Report run in Step 6 above, select
a sample of recently files review the data
disclosures to determine that the correct
Institution ID and number are disclosed
properly.
b. Select a sample of OEM issue and request
email signatures to determine if their unique
identifier is listed.
c. Review a sample of call recordings from real
estate applications to ensure that the Unique
Identifier was disclosed to the member prior
to taking the application.
d. For a sample of employees, ask them if they
know how to look up OEM numbers for all
registered employees

Third Party Servicers

13. Confirm that Third Party Service Providers do not

take home loan applications. If they do, then ensure
that there are procedures for them to comply with
program requirements, and that the contract requires
compliance and a right to audit clause.
1. Complete Audit Workpaper File

Complete the audit workpaper file and turn them into

be reviewed.

2. Complete BBP form

Add all issues identified to the Business Best

Practice (BBP) form. Determine that all issues are
documented appropriately.

3. Hold Closing meeting

Hold a closing conference with key management

members to discuss the results of the audit.
Review all findings with Management/obtain their
preliminary response.

4. Prepare and Distribute Audit Report Draft

Prepare a draft version of the audit report. Ensurethat

all significant recommendations are appropriately
included in the report.

5. Obtain Management Responses

Obtain a management response to all

recommendations. Review responses to ensurethey
address all issues identified.

6. Obtain Approval and Distribute Final Report

Obtain the CFO’s approval of report. Distributefinal

report to management.

7. Final Administrative Procedures

Perform the following administrative steps.

a) Ensure all review notes are addressed and

cleared.
b) Prepare comment tracking matrix for
Supervisory Committee.
 COMPARISON

Types of audit as compare to last three years audit report –

1. Internal audit-Internal audits take place within your business. As

the business owner, you initiate the audit while someone else in
your business conducts it.
Businesses that have shareholders or board members may use
internal audits as a way to update them on their business’s
finances. And, internal audits are a good way to check in on
financial goals.
2. Financial audit- Financial audits focus specifically on an
organization's financial status. Auditors work to verify records,
including expenses, revenue, investments and assets. They usually
compile this information into a final determination for investors or
shareholders.
3. Compliance audits- Compliance audits are used to determine if
companies are compliant with internal and external regulations.
This may include company standards, local regulations and state
and federal laws.

4. Government audit- Government audit serves as a mechanism or

process for public accounting of government funds. It also provides
public accounting of the operational, management, programme and
policy aspects of public administration. Not only that, it also
ensures accountability of the officials administering them.
To make sure that the expenditure is incurred out of the fund, which the
competent authority has sanctioned. To verify that the expenditure of
the government department is sanctioned as per the rules and
regulations of the department concerned. As seen in the above
screenshot of company report that auditor report issued by central
government.
5. Management Audit -A management audit is an analysis and assessment
of the competencies and capabilities of a company's management in
carrying out corporate objectives. The purpose of a management audit
is not to appraise individual executive performance but to evaluate the
management team in its effectiveness to work in the interests
of shareholders, maintain good relations with employees, and uphold
reputational standards.

I observed above classification of audit which was performed last three

years audit report. Moreover, little bit changing occur due to financial
and follow the similar pattern of audit report.

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