Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Sr. No Activity Risk Audit Steps
14 Storage of sensitive/Hazardous
material as per supplier
specification
• Risk of damage of material
• Hazardous material not stored, in
compliance with applicable laws and
regulations
• Levy of fines/Penalties
• Obtain a list of sensitive material from stores department, if any
maintained
• Verify whether stores department have MSDS (material safety data sheet,
which specifies that how a particular material should be stored) for all
such material
• Verify whether such material is stored as per MSDS
• Verify existence of fire extinguishers, also verify their inspection dates
• Check whether the MSDS is consistent and periodically updated with
occupational safety, health administration and other pertinent laws and
regulations
• Check there is a process for monitoring compliance to the relevant
regulations/applicable laws and specifications of vendors
• Obtain reasons for deviations and report as observation
15 Perpetual Inventory stock take • Difference between book stock and
actual record
• Correct stock/material count
procedures not followed
• Verify whether stores is following perpetual inventory system (system of
inventory where information on inventory quantity and availability is
updated on a continuous basis by physically checking the material)
• Check the frequency of perpetual inventory (PI)
• Stock counts of materials not properly
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