Brs [Resolved] | Audit #1961569

This query is : Resolved

neha (Querist)

07 January 2015 Dear Sir/Madam,

We are doing Internal Audit of one Private Ltd.Co.,We are Preparing BRS.After providing BRS to the Company,they are posting the missing & wrong transactions in back date.
My question is, is this procedure is right?

I want to explain my question with an example.Suppose we have prepared BRS for the month of April in the month of May.We have submitted the same to management of the company in June.But they made entries in back date i.e. April in August.

Thanks in advance.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

07 January 2015 then you need to seek explanation that why it was not posted before you made BRS and the reason for so late posting.

Moreover management must be asked to discourage such policy as that may lead to frauds in case if it is not taken seriously and if any employees takes its undue advantage.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

08 January 2015 Dear Neha..The practice followed is not correct and needs immediate attention.

First of all Preparing BRS is not the task of Internal Auditor. Internal Auditor is supposed to only check the BRS prepared by Accounts Department. So 1st of all you should not prepare the BRS.

Any mistake will come to notice only when BRS is prepared. Since you are preparing the BRS and not the Company employee the mistake is not noticed by them. Further as a good Practice BRS should be completed within 5th of Next month so that mistakes, if any, are found and rectified in time.

Your duty as an Internal Auditor should be limited to only checking the BRS.

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