SI.

Business Area Internal Control Objective Audit Program for Test of Control
No.
All investments or Check that all investments and disinvestments are
disinvestments made are approved by the investment committee decided by
approved the Board.
All investments or
Check all investments and disinvestments ledger
disinvestments are accurately
accounts with corresponding supporting
recorded in the accounting
documents. Reconcile any difference.
system.
All borrowing decisions made Check that all borrowing decisions are approved by
are approved. the management/ Board
Check all borrowing ledger accounts with
6 Treasury All borrowings are accurately corresponding bank statement/supporting
recorded in the accounting documents. Reconcile any difference.
system. Review loan repayments to ensure all repayments
are recorded correctly
Loan repayments are as per Check that loan repayment requests are as per the
Loan agreement loan agreement.
Review all interest expenses and interest income to
Interest are properly calculated ensure all interest are recorded correctly in the
and recorded in the accounting accounting system.
system Check that interest is reconciled to the bank
statement and difference if any is acted upon.
All Bank and cash transactions are authorised.(
All bank & Cash transactions
Authorisation as per the Chart Of Authority
are authorised
wherever applicable).
Check that bank transactions are recorded
immediately in the Accounting system.
Check bank reconciliations are prepared monthly
All bank transactions are and any long outstanding items are taken care of
recorded accurately and in the immediately.
correct accounting period
Verify accuracy of the Bank reconciliation prepared
7 Cash & Bank Inspect postings of bank transactions to the general
ledger accounts
All cash & bank transactions are
Check that all cash & bank transactions are made
made against proper
only against duly approved bills and documents.
supportings
Check that cheque books are lying only with the
Control exists over custody of person assigned with this responsibility.
cheque book. Review the sequence of cheque numbers and
enquire into missing numbers
Cash is safeguarded Surprise physical verification of cash is carried out.
SI.
Business Area Internal Control Objective Audit Program for Test of Control
No.
Check that no single expenditure of more than Rs
15000 is made from the petty cash at site.
Check all the expenditure above 5000 are pre-
Petty cash at site conforms with
approved by Sr.Vice President - Projects.
company policy.
8 Petty Cash at site Check all expenses are approved by the Site-in-
Charge and have post facto authorisation of Sr.Vice
President-Projects.
Insurance with respect to cash in transit and cash at
Cash at site is safe guarded
site is taken.
Review the reporting to management of actual cost
related to the project.
Check that actual cost is compared with budgeted
Project cost is managed to cost at regular interval. Reasons for variance also
Project Cost
9 ensure total project cost is analysed on a regular basis.
Management
within budgeted cost. Check that any significant revisions to the budget
are approved
Check that status of project completion are
compared with budgeted and actual cost.
Construction Construction schedule is Actual construction activities are regularly reviewed
10 Schedule managed to ensure completion with the scheduled activity. Delay in work schedule
Management of project on time. are regularly analysed.