Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Sr. No Activity Risk Audit Steps
count, weight, or measurement by the receiving department/stores
• Verify the documentation in respect of goods received at, before, or after
the end of an accounting period and check whether complete and
consistent recording in the appropriate period has been made
8 Clarity of Responsibilities • Potential risk of fraud • Verify whether responsibilities are assigned to all the stores employees
• Verify whether receipt and quality inspection is done by different persons
• Obtain reasons for deviations and report as observation
9 Review process for rejection of
materials and their storage
• More rejections can lead to disruption
of operations
• Damaged or low quality goods
received are not properly identified
and handled
• Defective raw materials are not
returned to the supplier and are
accepted into stock
• Accounts payable is not notified of
goods returned to vendor, and the
invoice is paid
• Obtain a list of material rejected during the audit period
• Analyze the data in the following way (Top five materials which were
rejected, top five vendors whose material was rejected, rejection quantity
vis-à-vis total quantity)
• Verify linkage of rejections with vendor performance
• Verify whether rejected materials are adequately segregated from other
materials and are not used
• Verify whether the supplier has been intimated about the rejection
through the discrepancy note/rejection report with information to
purchase, finance and user department
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