Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Sr. No Activity Risk Audit Steps
17 Materials having shelf life • Potential risk of expired material
getting issued resulting into disruption
of operations
• Obtain a list of materials having shelf life (expiry date)
• Verify whether records are properly updated as to batch numbers, expiry
dates at the time of receipt of material
• Verify whether the material is issued on FEFO (first expiry first out) basis
(i.e. material having expiry date earlier should be issued first)
• Verify approval for writing off expired material
• Obtain reasons for deviations and report as observation
18 Stock levels and ageing • Inadequate or inappropriate inventory
levels
• Unanticipated or excess inventory
carrying costs may be incurred
• Obtain stock ageing as on date of audit
• Obtain reasons for ageing of inventory
• Verify whether stock levels like minimum, maximum, reorder level, safety
stock are defined
• Verify adherence to set stock levels as defined i.e. no stock is more than
maximum level or less than minimum level etc
• Verify whether the defined stock levels are revised/updated as per the
consumption pattern of materials
• Obtain reasons for deviations and report as observation
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