Internal Audit Checklist

Internal Audit Checklist Software Intro

An internal audit checklist is an invaluable tool for comparing a business’s practices and processes to the requirements set out by ISO standards.internal audit is an independent assessment of how effective an organization’s risk management, processes, and general governance is. The internal audit checklist contains everything needed to complete an internal audit accurately and efficiently.

Internal audits can be scheduled as frequently as your organization determines is needed in order to improve processes. Some businesses schedule audits once a year, every quarter, or even once a month, at most.

Internal Audit Checklist Areas

The internal audits will review a few areas of your organization, including::

  • Standards
  • Areas subject to improvement
  • Effectiveness of the system

Broadly there are five types of internal audit:

  • Compliance audits
  • Management (performance) audits
  • IT audits
  • Operational audits
  • Environmental audits

Steps & Sub-Steps to be Checked Under a Internal Audit Checklist

Audit Planning Audit Closure Execution
Task_Assignment Audit Closure Execution of Audit I
Additional Audit Program Execution of Audit II
Briefing Meeting Execution of Audit III
Kick of Meeting
Preparation of Audit

Production Process HR Process and Admin Process HR Process and Admin Process
Budget V/s Actual Analytical Review Overtime
Efficient utilisation of resources Attendance Payroll
HR Records Contract Labour (Regulation &Abolition)Act
I/O Ratio Contractor
Log Reports Expenses
Maintenance Record Factories Act
Quality Check Leave
Sales V/s PPC

Procurement Process Sales Process Sales Process
Import Bills sent on collection basis Receipt of sales order
Import - L/C monitoring Credit Notes Sales return
Import - Payment Delivery Scrap Sales
Import - Receipt of material from customs authority Export sales
Import Licenses Export sales - Claims
Import Licenses Export sales - Payment
Purchase Orders Export sales - Working capital cycle
Quotations
Raising Of Indent

Logistics Process Inventory Management Process Indirect Taxes
Bill passing  Physical verification of Stock  Custom 
Capacity utilization  Receipt of acknowledged Invoices Excise and Cenvat 
Contracts  Written-off Stocks  Service Tax 

Finance & Accounts Process Finance & Accounts Process Planning Process
Accounts Payable and Disbursement Processes  Debtor Management - Review the credit balance in debtors’ accounts: Production Planning Process
Accounts Payable and Disbursement Processes - Duplicate payments and lost discounts Debtor Management -Bad debt assessment / write off policy Sales Planning  
Accounts Payable and Disbursement Processes - Payment Controls  Debtor Management -Balance confirmation system   Sales Planning - Order Based Sales
Accounts Payable and Disbursement Processes - Policies and procedures Major Expenditure Sales Planning - Target Based Sales
Accounts Payable and Disbursement Processes -Disbursement controls Store Planning
Debtor Management - Credit and collection policy of company
Debtor Management - Review of Ageing Analysis

IT Process Marketing Process Branch Office Process
Data Access  Distribution Planning  Collection Mechanism 
Data Distribution Market Development  Cash In Hand
Data Protection And Data Recovery  Market research & demand forecasting  Documentation 
Networking  Product Development  Extension for Delayed Jobs 
Power Supply Option Sales administration  Fixed Asset 
Safeguards To Ensure Unauthorized Entry  Sales Pricing  Marketing Activities 
Software Resources  Sales Promotion  Other Areas 
Web-Expossure and Security    

MIS Process Report Follow up of the Previous repo
Sales Audit committee Admin Process
  Presentation   Branch Office Process 
  Coaching for Next Team  Customer Service Process 
  Report   Direct Taxes 
    Finance & Accounts Process 
    HR Process
    Indirect Taxes 

Follow up of the Previous repo Follow up of the Previous repo Process Documentation
Inventory Management Process  Production Process  Flow Chart 
IT Process    Sales Process   RCM 
Logistics Process    Followup I  SOP
Marketing Process   Followup II 
MIS Process Followup III 
Planning Process
Procurement Process