Checklist for Audit of Sales and Purchases for Manufacturing Companies

Sales

** Accounting policy followed by the company for recognition of sales

** Cut off procedure

** Credit notes/ Debit notes if any,

* *Break up for Export and domestic Sales

** Check with Reconcilation of VAT and Excise

** Variance analysis

** Pending orders

Other Income

** Vouching

** Verification of interest amount

** Verification of Dividend amount

** Verification of Royalty amount and agreements for the same

** calculation for any sale of asset/ scrap etc

** Cut off procedure

** Variance analysis

Purchase and other Direct Expenses:-

** Break up for different type of Purchase

** Custom Duty analysis

** Duty paid on purchases

** Capitalization of incidnetal expenses relating to Purchase

** Purchase Retun  and  DR Note confirmation

** Cut off procedure

** Variance analysis

** Verification of PO (open or not open)