Help required!

Some of my suggestions for audit of a petrol bunk:

1. Most of the income will be by sale of petrol, diesel, oil which will be generally in cash. Verify the internal controls as in many of the bunks they donot have a automatic slip generation service. Chances of cash misappropriation from the employees are more.
2. Chances that they might even have companies by from them on credit. Enquire from the  management if there are any and seek confirmations.
3. Stock verification needs to be done on the date of audit and do the reverse working for finding out stock as on the BS Date.
4. Internal control for cash needs to be checked. 
5. Verify the purchases as the purchases will be from big companies like RIL, BPCL, IOL etc external confirmation can be taken easily and corroborated with the accounts.

check credit card statements, cash book, verify the stock, subsidy which is received from the goverment, purchase book & sales book

any other suggestions about checking  internal control?

check the opening stock as there are many frauds in selling over night

tariq thats all i knw .

after your audit please do reply what else you have conducted

Petrol, diesel and oil issue slips are submitted onto a fuel control sheet on a daily basis. Deliveries are recorded on a daily basis on the control sheet when petrol, diesel and oil is delivered.

Observation

1. Ensure that each fuel pump unit is fitted with a security lock and the necessary fire fighting equipment.

2. There must be a pump attendant in control at all times.

3. Inspect the fuel issue register and which should reflect the following:

• Date of issue
• Coupon number
• Quantity issued or received
• Closing balance
• Dip stick balance

Procedures

Select one week’s issues and perform the following:

4. Check and ensure that the pump attendant enters daily issues in a fuel control sheet/register.

5.  Vouch daily issue slips to the fuel control sheet/register.

6. Cast control sheets and balance the issues to difference in pump readings daily.

7. Ensure that issue notes are being filled in correctly and issued in sequence at all times.

8. Check all issue notes for correctness. No alterations or excess issues are to be accepted.

9. Ensure that fuel coupons are properly authorised by a responsible or senior official.

10. Ensure that the pump attendant has no excess to unused fuel coupons.

11. Ensure that an official other than the fuel attendant is responsible for the dip stick readings and such reading is recorded daily in the register/fuel control sheet.

12. Ascertain the frequency of physical stock take of petrol. Should be performed at least monthly.

13. Re-calculate fuel stock, taking into account:

• Previous days dip stick readings
• Add any stock delivered
• Less issues for the day
• Should equal closing balance or daily dipstick reading.

14. Compile stock sheets and confirm meter reading as well as dipstick readings recorded on the fuel control sheet.

15. Vouch opening and closing balance carried and brought forward.

16. Investigate any differences in respect of the above.

17. Vouch stock received (delivery notes) to fuel control sheet/register to ensure that stock received was correctly recorded.