Audit Program
ABCD 1234 AND COMPANY WLL Corporate Office | To: Head – Procurement & StoresCC: | From : Head – Internal Audit | Report No | Date : |
* Subject: Audit Report on Operations of ABCD 1234 AND COMPANY WLL.
We have done general operations audit of ABCD 1234 AND company WLL from 1.11.2012 to 20.11.2012 and submitting the draft audit report below..
Executive Summary: * There is no ABC analysis of the suppliers have been done by the company ( Refer finding # 1).
The Purchasing Department has not carried out an ABC analysis for suppliers and articles. As a result purchasing activities are not focusing its activities on the right suppliers and articles. Local purchases are done with only one supplier and overseas purchases are done with just two suppliers. The lack of a focused approach could result in efforts not being spent in areas where the potential for savings is greater. * Finding – There is no facility to check the physical stock with system stock. ( Refer finding # 2)
We were informed that the inventory system is not in operation for the past two months due to the computer virus. Hence we could not verify the physical stock with system stock
* Finding – There is no evidence of risk management activities in purchase department. ( Refer finding # 3)
We were not provided with evidence to substantiate that risk management activities are carried out in the purchasing area. Few instances where risk analysis may be required and beneficial in identifying mitigating factors are: * Dependence on single source supplier for local purchases. * Dependence on two supplier for overseas purchases. * Change in government rules and regulations for imports etc. * Finding – There is no evidence of risk management activities in purchase department.( Refer finding #5 )
We were not provided with evidence to substantiate that risk management activities are carried out in the purchasing area. Few instances where risk analysis may be required and
* Subject: Audit Report on Operations of ABCD 1234 AND COMPANY WLL.
We have done general operations audit of ABCD 1234 AND company WLL from 1.11.2012 to 20.11.2012 and submitting the draft audit report below..
Executive Summary: * There is no ABC analysis of the suppliers have been done by the company ( Refer finding # 1).
The Purchasing Department has not carried out an ABC analysis for suppliers and articles. As a result purchasing activities are not focusing its activities on the right suppliers and articles. Local purchases are done with only one supplier and overseas purchases are done with just two suppliers. The lack of a focused approach could result in efforts not being spent in areas where the potential for savings is greater. * Finding – There is no facility to check the physical stock with system stock. ( Refer finding # 2)
We were informed that the inventory system is not in operation for the past two months due to the computer virus. Hence we could not verify the physical stock with system stock
* Finding – There is no evidence of risk management activities in purchase department. ( Refer finding # 3)
We were not provided with evidence to substantiate that risk management activities are carried out in the purchasing area. Few instances where risk analysis may be required and beneficial in identifying mitigating factors are: * Dependence on single source supplier for local purchases. * Dependence on two supplier for overseas purchases. * Change in government rules and regulations for imports etc. * Finding – There is no evidence of risk management activities in purchase department.( Refer finding #5 )
We were not provided with evidence to substantiate that risk management activities are carried out in the purchasing area. Few instances where risk analysis may be required and