Internal audit on purchases of a mfg. company...urgent sir!!

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Rajesh (Querist)

03 January 2012 Dear Experts,

My doubts on internal audit for a manufacturing company regarding purchases.

1) What are the internal checks should i verify to conduct an internal audit as far as purchase is concerned w.r.t manufacturing company is concerned.

2) What are the registers that has to be maintained and how it has to be checked to know whether proper controls are there?

3) What are the controls are there for purchases are concerned?

4) Should anything be affixed in the purchase invoice and whether is shd be serially numbered?

5) Please explain me stage by stage how purchase activities in a manufacturing company is carried out right from receiving quotation to issuing goods to production.

Because my boss gave just a glimpse or a vague prcedures to be followed, thats why asking from the experts here so that i can do my job satisfactorily.

Pls. excuse for the time taken and asking too detailedly.

Thanks & Regards,
Rajesh.

PRABHAT MOHANTY

PRABHAT MOHANTY (Expert)

06 January 2012 1-Produce break-up for Manufacturing Expenses.

2-Produce relevant agreements with the parties which are not covered above.

3-Provide the list of Purchase orders which are pending from more than 1 month.

4-Whether the allocation for raw material is properly made in respective heads under purchase.

5-Whether the budget was prepared by the company for the year 2007-08, provide the details of deviations.

6-Whether the emergency purchases were made during the year, provide the detail for the same.

7-What is the mode for selection of suppliers, whether the new suppliers are added in preceding year, name of the person who makes purchases for the company?

8-Whether the company has made the contract for supply of goods, if yes, provide the agreement for the same, is there any change in terms of contract in preceding year?

9-Please provide a detailed note on the procedure followed by the Company for making purchase.

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