To conduct an audit of the provided information, I've organized and analyzed the data into key components. Below are the steps and considerations for auditing the given data:
1. Data Organization
Review the data by segments:
- Purchase Data: Grouping by item code, supplier, and transaction date.
- Cost Analysis: Compare prices and quantities received over time.
- Supplier Evaluation: Identify the number of suppliers involved and any procedural notes (e.g., suppliers no longer used).
2. Validation of Entries
- Cross-reference Expense Entries: Check that the quantities and amounts for each received item correctly align with the total purchases listed.
- Supplier Compliance: Verify that no purchases are made from suppliers marked as "do not use anymore."
- Transaction Dates: Ensure that all transaction dates are accurate and that they fall within the expected period for audit.
3. Cost Analysis
- Cost Per Unit: Calculate the average cost per unit for the Induna Special Bulk across various suppliers.
- Example:
- For GRITSLY (PTY) LTD: (180.00 / 36) = 5.00 (Price per kg)
- For Milling, a Div of TCB: (251,002.80 / 32) = 7,843.65 (Price per kg)
- Example:
- Identify Trends: Examine if costs are increasing and explore reasons (e.g., supply chain issues, market fluctuation, increase in demand).
4. Supplier Evaluation
- Supplier Usage: Identify if there is a high dependency on particular suppliers, and analyze the risks associated with that. Avoiding suppliers marked as "do not use anymore" is crucial for compliance.
- Derive Performance Metrics: How often does each supplier deliver? What is the rate of discrepancies in deliveries among them?
5. Inventory Consistency
- Inflow vs. Outflow: Check received quantities against documented usages in production to confirm stock movements are properly recorded.
- Destruction/Returns: Look for records of any items removed from inventory (for spoilage, damage, etc.) and validate that no such claims or compensations have been recorded.
6. Documentation Check
- Go through the attached invoices and validate if they correspond with the purchase orders and receipts in the data provided.
- Ensure no discrepancies exist between the inventory and the invoices issued.
7. Policy Compliance
- Review against the stipulated policies regarding returns (e.g., claims for spillage and pillage).
- Validate claims for bonded movements or exports, ensuring they match the regulations and are properly documented.
8. Reporting Findings
- Summarize the findings and highlight key areas of concern or discrepancies.
- Prepare a report indicating compliance or any areas that require corrective actions.
Summary of Key Findings
- Ensure Compliance: Make sure to stop transactions with suppliers who have been flagged.
- Analyze Cost Variances: Significant price fluctuations should be investigated.
- Documentations are Key: Verify the accuracy and consistency of all related documents.
Once these steps are followed, you can compile a comprehensive report for management review that highlights areas of contention, compliance with internal guidelines, and recommendations for improving procurement practices.