INTERNAL

AUDIT
REPORT

Submitted to: Doc. Rolando Robleldo

Submitted by: Santos, Rodolfo S. Jr.
SAVEMORE SUPERMARKET

OPERATED BY SANFORD MARKETING CORPORATION

LOCATED AT: CARUNCHO, AVE. PASIG CITY

SAVEMORE SUPERMARKET:

SM SUPERMARKET IS A FILIPINO SUPERMARKET CHAIN OWNED BY SM

INVESTMENTS AND IS OPERATED THROUGH SUPER VALUE INC. AS OF MAY 30,
2014, SM INVESTMENTS OPERATED 42 SUPERMARKETS AND 98 SAVEMORE
BRANCHES ACROSS THE PHILIPPINES.

SAVEMORE MARKETS:

SAVEMORE MARKET IS A CHAIN OF NEIGHBORHOOD GROCERY STORES

UNDER THE SM FOOD RETAIL GROUP (OTHER FOOD RETAIL FORMATS UNDER
SM ARE SM SUPERMARKET AND SM HYPERMARKET). THESE STORES ARE
LOCATED OUTSIDE AN SM MALL IN EITHER STAND-ALONE OUTLETS OR AS AN
ANCHOR TENANT OF A COMMERCIAL CENTER/COMMERCIAL BUILDING OR
NON-SM MALL.

SAVEMORE MARKETPLACE:

SM MARKETPLACE IS THE NEWEST ADDITION TO SM FOOD RETAIL

GROUP, WHICH MANAGES SM SUPERMARKET, SM HYPERMARKET, AND
SAVEMORE MARKET. MARKETPLACE STORES ARE LOCATED IN AN EXISTING,
MAJOR NON-SM MALL OR A SPECIALTY SM SUPERMALL TO PROVIDE
GROCERY NEEDS TO SHOPPERS. ON DECEMBER 8, 2012, THE FORMER A-
VENUE EVENTS CENTER WAS CONVERTED TO SM MARKETPLACE.

SAVEMORE INTERNAL CONTROL:

ORGANISATIONS ESTABLISH AN INDEPENDENT INTERNAL AUDIT

FUNCTION TO PROVIDE CONTINUOUS REVIEW OF THE EFFECTIVENESS OF
RISK MANAGEMENT, CONTROL, AND GOVERNANCE PROCESSES. INTERNAL
AUDIT DOES THIS BY PROVIDING MANAGEMENT WITH INFORMATION ON THE
EFFECTIVENESS OF RISK MANAGEMENT, CONTROL AND GOVERNANCE
PROCESSES.

SAVEMORE SUPERMARKET HAVING EFFECTIVE CONTROLS TO REDUCE

THE RISK OF ASSET LOSS AND HELP ENSURE THAT PLAN INFORMATION IS
COMPLETE AND ACCURATE, FINANCIAL STATEMENTS ARE RELIABLE, AND
THAT THE PLAN COMPLIES WITH LAWS AND REGULATIONS.

THEY TOLD ME SOME OF THEIR INTERNAL CONTROL SUCH AS:

SALES AUDIT:

DAILY RECEIVING OF CASHIERS DOCUMENTS COMING FROM TREASURY

DEPARTMENT IN ITS DESIGNATED BOX WITH PADLOCK. AND T7 BOX FROM
CUSTOMER SERVICE.
 -WITNESSED BY:

ONE REPRESENTATIVE FROM OPERATIONS/SELLING

DEPARTMENT/CUSTOMER SERVICE [(TO REPORT THE COMPLETENESS TO
THE OWNERS OF THE DOCUMENTS (CASHIER)];

ONE REPRESENTATIVE FROM TREASURY DEPARMENT [TO ENSURE

THAT THE DOCUMENTS WE WILL RECEIVEING IS STILL COMPLETE AS TO
WHAT THEY RECEIVED]

AFTER WITNESSING THE RECEIVING OF THE DOCUMENTS, ALL PARTIES ARE

REQUIRED TO SIGN AT THE CASHIERS DOCUMENTS MONITORING, IT
INCLUDES: TRANSACTION DATE; THE NUMBER OF CASHIERS DURING THE
SAID TRANSACTION DATE; NAMES OF THE CASHIES; TIME IN AND OUT OF THE
CASHIERS AT TREASURY OFFICE. ALSO, WE SIGNED AT THE T7 BOX LOGBOOK
TO ENSURE THAT WE RECEIVED ALL DOCUMENTS INSIDE T7 ARE COMPLETE.

CASHIERS DOCUMENTS INCLUDES:

SALES DRAFTS EVIDENCED DOCUMENT CREATED THRU VERIFONE DURING

SALES TENDERED BY ATM AND CREDIT CARDS

CORPCARD-DOCUMENT ISSUED WHEN AN EMPLOYEE GET GOODS FROM

SELLING AREA FOR STORE USED.

SODEXO GIFT PASS-GIFT CERTIFICATE

CLOSE REGISTER PER CASHIER-DOCUMENT CREATED THRU POS WHEN THE

CASHIER IS GOING TO OUT. IT IS WHERE ALL THE DOCUMENTS OF THE
CASHIER IS ENUMERATED.

PICK UP TICKET-DOCUMENT CREATED BY THE POS WHEN THE CASHIER IS

GOING TO BREAK AND ASSIGNED TO ANOTHER POS. IT IS WHERE THE CASH
OF THE CASHIER IS ENUMERATED (BILL X NUMBERS OF BILL)

T7 DOCUMENTS:

SETTLEMENT REPORT-DOCUMENT CREATED THRU VERIFONE WHERE ALL

POS TRANSACTIONS TENDERED BY ATM AND CREDIT CARDS RECORDED.

CLOSE REGISTER PER POS- DOCUMENT CREATED THRU POS AT THE END OF
THE DAY. IT IS WHERE TOTAL SALES PER POS IS INDICATED. IT ALSO
INCLUDES THE OPENING READING, CLOSING READING, VAT SALES PER POS,
VAT AMOUNT PER POS, AND GROSS SALES PER POS.

SETTLEMENT SUMMARY REPORT-IT IS COMPOSED OF COLUMNS: POS/LANE

NUMBER, SETTLED AND UNSETTLED. CREATED BY CUSTOMER SERVICE
ASSISTANT AND FILL UP BY ACCOUNTING PERSONNEL.

PRINTING OF CASHIERS DOCUMENTS FROM ACCOUNTING SYSTEM

- CASHIERS REPORT INCLUDES TOTAL SALES, ITS TENDER, TOTAL CASH

REMITTED, MERCHANDISE RETURNED, VOIDED TRANSACTION, SENIOR
CITIZEN DISCOUTS PER CASHIER.
- NEGATIVE REPORT INCLUDES ALL THE MERCHANDISE RETURNED AND
VOIDED SALES DURING THE TRANSACTION DATE
- MEDIA REPORT INCLUDES TOTAL SALES PER TENDER. TOTAL SENIOR
CITIZEN DISCOUNT.
 - DEPARTMENT REPORT INCLUDES TOTAL SALES PER MERCHANDISE.
- BIR REPORT INCLUDES TOTAL SALES PER POS.

AUDIT OF CASHIERS DOCUMENTS:

ENSURE THAT TOTAL SALES IN MEDIA REPORT, DEPARTMENT REPORT, BIR

REPORT AND SAP ARE ALL EQUAL. ANY UNBALANCED, UNCAPTURED,
UVOIDED TRANSACTION MUST BE REPORTED IMMEDIATELY BY PREPARING
INCIDENT REPORT FORM.

CHECKING OF ACTUAL SALES DRAFTS PER CASHIER, PICK UP TICKET,

CLOSE REGISTER PER CASHIER TO BE COMPARED IN CASHIERS REPORT.
RECLASS ANY WRONG TENDER AS NECESSARY. IF THERE IS ANY
DISCREPANCY, THE DIFFERENCE WILL TEMPORARILY TREATED AS
UNSETTLED/ OVERSETTLED. ANY ADJUSTMENT MUST REFLECT IN MEDIA
REPORT.

CHECKING OF THE ACTUAL AMOUNT OF SODEXO GIFT PASS IS CORRECT

IN CASHIERS REPORT. ANY DISCREPANCY WILL CONSIDER EITHER AS
OVER/ SHORT OR WRONG MODE OF PAYMENT.

CHECKING OF SENIOR CITIZEN DISCOUNT FORMS FILLED UP BY CASHIERS

IF BALANCE TO THE TOTAL SENIOR CITIZEN PER CASHIER. ALSO CHECK
THE SIGNATURES.

ENCODING OF SETTLEMENT REPORT IN COMPUTER AND GET THE TOTAL

TO BE COMPARE IN TOTAL ADJUSTED MEDIA REPORT. ANY DIFERRENCE
WILL CONSIDER AS PREVIOUS TRANSACTION OR UNSETTLED
TRANSACTION.

AUDIT OF T7 DOCUMENTS:

CLOSE REGISTER PER POS

- COMPARE CLOSE REGISTER PER POS IF SAME TO THE BIR REPORT.

- CHECK IF ALL POS ARE USED.

MERCHANDISE RETURN AND VOID RECEIPTS

- COMPARE ACTUAL MERCHANDISE RETURN AND VOID RECEIPTS

RECEIVED IF ALL RECORDED IN NEGATIVE REPORT.
- CHECK IF AUTHORIZED PERSONNEL PROCESSED THE MERCANDISE
RETURNED AND VOIDED TRANSACTIONS.
- CHECK THE SIGNATORIES IN MERCHANDISE RETURN RECEIPT/ VOID
RECEIPT IF:
-AUTHORIZED PERSONNEL IS ACTUALLY WHO PROCESSED THE
TRANSACTION
-ACTUAL ITEM WAS RECEIVED, SELLING DEPARTMENT SIGN MUST BE
PRESENT.

WHEN TENDER WAS RECLASSED, AN ADJUSTMENTS WAS MADE IN MEDIA

REPORT, AND BALANCED TO THE SETTLEMENT REPORT, THEN PRINTING OF
ADJUSTED MEDIA REPORT OR CASHIER DECARATION REPORT MUST BE
DONE.

MULTIPLE SWIPED OF CARDS:

 -MONITORING OF CASHIERS MULTIPLE SWIPED OF CARDS. RECORDING
THE NAME OF CARDHOLDER, TIME OF TRANSACTION, CARD NUMBER,
POS NUMBER, AND CASHIERS NAME TO MONITOR IF ANY HAVE
MALICIOUS ACT WAS DONE BY CASHIERS.

NO SALE COUNT:

-A CASHIER CAN ONLY HAVE 10X NO SALE COUNT TO ENSURE THAT THE
MONEY IS NOT EXPOSED TO BOTH CASHIERS AND CUSTOMER.