Internal Audit Checklist
Part B – Internal Audit of Specific Functions
(1) Checklist for Sales, Services and Revenue
The sales/ services/ revenue account is closely related to accounts receivable and therefore, the value of all receivables should be equal to the organization’s sales/services/revenue value.
Documentation
(i) A sufficient and appropriate record of the basis for the audit report.
(ii) Evidence that the audit was performed in accordance with Standards on Auditing (SAs) and Standards on Internal Audit (SIAs) and other applicable legal & regulatory requirements.
Legal Compliance
(i) Payment of GST on the goods/ services purchased from unregistered and registered dealers.
(ii) Payment of customs duty and customs clearance of export material.
(iii) Timely filing of GST Returns.
Authorisation Matrix
(i) A documented authorization matrix is desirable and should be recommended.
Compliance with Accounting Standards and Standards on Auditing
Procedures/ Controls
Credit Assessment
Sales and Dispatch
Reconciliation
Segregation of Duties
IT Controls
Recording of Transactions
Reporting
Good Governance
(2) Checklist for Purchase and Procurement
The objective of checking material procurement is to ensure that the right material is procured at the right price, at the right time and in the right quantity.
Documentation
(i) Purchase/ service policy of the organisation.
(ii) Purchase order/ service contracts.
(iii) Original invoice.
Legal Compliance
(i) Payment of state/city entrance cess or availability of proper document showing exemption for such payment.
(ii) Payment of customs duty and customs clearance of imported material.
(iii) Deduction and payment of TDS on freight on purchases and services.
(iv) Payment of GST on the goods purchased from unregistered dealers.
Authorisation Matrix
(i) Requisition for purchase of store material/ service contracts as well as direct debit items (including its amendments/ modifications).
(ii) Opening of tender/ quotations.
Compliance with Accounting Standards and Standards on Auditing
Procedures/ Controls
Recording of Transactions
(i) Procurement for a project or capital expenditure is not booked as revenue expenditure.
(ii) The value of purchase/service is recorded net of GST.
Quality/Good Governance
(i) Purchase budget and its comparison with the actual and authorization of variation.
Reporting
