Internal Audit Checklist & Audit Program
Scope:
Order to Cash (O2C)
Procure to Pay (P2P)
HR & Payroll
Compliance (Companies Act, GST, TDS)
Treasury Management
Vendor Onboarding Process
Budgeted Revenue for Projects vs Actuals including Cost
1. Order to Cash (O2C)
Verify accuracy and completeness of invoices raised against contracts and delivery
documents.
Review revenue recognition tracker based on Percentage of Completion (POC) method.
Examine existing contracts to validate billing terms and revenue recognition.
Perform age analysis of receivables and assess overdue balances.
Verify receipts and collections are recorded and banked accurately.
2. Procure to Pay (P2P)
Verify purchase requisitions are properly authorized.
Confirm purchase orders are approved and match requisitions.
Check Goods Receipt Notes (GRN) for timely and accurate recording of material receipt.
Validate vendor invoices for accuracy and approval.
Review existing vendor contracts for compliance with agreed terms.
Verify new vendor registration documentation and KYC compliance.
Verify vendor payment advice matches invoices and approvals.
Conduct age analysis of vendor payables.
3. HR & Payroll
Verify manpower requisition forms are authorized before recruitment.
Review joining formalities documentation for new employees.
Check exit formalities are properly completed for departing employees.
Verify attendance records and their reconciliation with payroll.
Validate accuracy of payroll processed, including salary calculations and disbursement.
Confirm leave records are maintained and authorized.
4. Compliance
Companies Act
Verify adherence to statutory filings and disclosures as per Companies Act requirements
(e.g., ROC filings, board minutes).
GST
Verify filing and reconciliation of GSTR-1, GSTR-3B, and GSTR-2 returns.
Reconcile input tax credit and output GST with books of accounts.
TDS
Verify correct deduction of TDS on applicable payments.
Check timely payment and filing of TDS returns.
Review expense ledgers to identify any missed TDS deductions.
5. Treasury Management
Review bank reconciliation statements for accuracy and completeness.
Verify documentation and compliance related to Letters of Credit (LC) and Bank Guarantees
(BG).
Verify cash and bank expense vouchers are authorized and properly supported.
Compare budgeted revenue and expenses for projects against actuals; analyze significant
variances.
6. Vendor Onboarding Process
Verify completeness and correctness of vendor registration forms and KYC documentation.
Confirm due diligence and approvals are obtained before vendor activation.
Review contracts and agreements signed with new vendors.
7. Budgeted Revenue vs Actuals for Projects (Including Cost)
Compare budgeted revenue and costs for projects against actual figures.
Analyze and investigate significant deviations or cost overruns.
Verify supporting documents and approvals related to project budgets and expenditures.
