Internal audit questionnaire..doubts..urgent sir!!

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Rajesh (Querist)

25 August 2012 I read through the ICAI publication with respect to internal audit control implementation. In the questionairre format i have the following doubts w.r.t the heading of PURCHASES, RECEIPT OF GOODS AND PAYMENTS FOR INVOICES:
1.Are persons connected with receipt of materials and the keeping of receiving records denied authority to initiate purchases or to approve invoices ?
a) why the receipt of materials keeping person and to approve invoices be denied?
2.(a)Are all suppliers’ invoices routed direct to the Accounts Department ?
Why the suppliers invoices routed direct to the accounts department?

(b)Are they entered in a Bill Register before submitting them to other departments for check and / or approval ?
Why that has to be done as said above?

(c)Are advance and partial payments entered on the invoices before they are submitted to other departments ?
Why it has to be done like the above?

Thanks & Regards,
Rajesh.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)

25 August 2012 1. Becasue, the store keeper might mishandled the material. eg. material received at store 90 qty but the store keeper approved for 100 qty.. diff of 10 he might have mishandled or tieup with vendor to loot the money

2. a, it should not be directly routed to account dept, it should go through all the dept.,
2. b, to keep a record of payment and invoices
2. c, to avoid double payment..

hope my reply would satisfy u

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