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Case - 1: You Have Completed The Internal Audit of The Project Expenditure Incurred by

The internal auditor observed that: 1) Desktops were purchased without a supply order and the supply order was issued after delivery. Procurement policy requires goods to be purchased from listed suppliers while maintaining internal controls. 2) There were instances of a long association between the procurement manager and a supplier.

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Manna Mahadi
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56 views1 page

Case - 1: You Have Completed The Internal Audit of The Project Expenditure Incurred by

The internal auditor observed that: 1) Desktops were purchased without a supply order and the supply order was issued after delivery. Procurement policy requires goods to be purchased from listed suppliers while maintaining internal controls. 2) There were instances of a long association between the procurement manager and a supplier.

Uploaded by

Manna Mahadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case -1: You have completed the Internal Audit of the Project Expenditure incurred by

BD Society for Rural Development. Your work was carried out in accordance with the
agreement dated June 21, 2016 with SPMU, ICZM Project and Scope of Work
stipulated therein.

On cross verification of Challan with Supply order in respect Desktop purchased on


03/12/2016, you observed that the above items were purchased without any supply
order. Moreover, a supply order was given to vendor in respect of above purchase on
24/12/2016, i.e. after delivery of items. As per procurement policy, goods must be
procured from listed suppliers with maintaining standards internal control over
procurement.

You found instances of long association of Procurement manager with the supplier.

Case-2: Write an audit report in IAD format on the above observation and information.

You are internal auditor of M Group Global, a consumer goods manufacturer. During
your audit you found a healthy bottom-line in 2017. The business was making loss for
the last 4 consecutive years. The management of the company declared that if it incurs
loss in 2017, the whole sales and accounts team will be sacked. The sales and
accounts team had several meeting on this issue to improve bottom line. The chief
accountant find a solution that sales will be recognized as soon as they receive sales
order. There are instances that sales return are not adjusted with the revenue account.

Write an audit report in IAD format on the above observation and information.

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