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04 - Enterprise Audit Form
04 - Enterprise Audit Form
SHG: Education:
Business Description:
Area of Operation:
Buyers Details:
1.1.2 What are the needs of the current or potential customers (related to the enterprise in
consideration) and are the needs met by the products sold in the enterprise?
1.1.3 If the needs of current/potential customers are not met, is there are scope for offering
additional services/products?
1.2.4 Why are they not purchasing the products from the enterprise/shop under study?
1.3 Competitors
1.3.1 Are there more enterprises/shops in the area of operation which sell/offer the same products
services?
1.3.2 Does the enterprise have any advantage over the competitors in the area of operation?
1.3.3 Are there any potential/new competitors who will enter the market in the future?
1.4 Price
1.4.1 What is the price(s) at which the product(s)/service(s) is (are) being offered to the customer?
1.4.2 What is the price that the customer is willing to pay? Is he/she willing to pay more?
1.4.3 What are the established prices for the product/service being offered in the market?
1.4.4 Can a desirable level of profit be generated at the price set for the product/service?
1.4.5 Percentage of Customers avail credit facility while purchasing the product.
1.5 Seasonality, Place and Promotion
1.5.1 Seasonality and business hours of market: Please indicate the days, hours and months the outlet
is available to consumers.
1.5.2 Is the location of the enterprise/shop easily accessible for the customers?
1.5.3 Does the enterprise use organized media-mix like, Radio, cinema, advertising/ hoarding, banner
for the promotion of the products or the shop? If not, will doing so benefit the enterprise?
1.5.4 Discount offered during any festive season to attract more customers ( If yes please elaborate )
2. FINANCIAL AUDIT
2.1 CASH
2.1.1 Is the enterprise facing shortage of cash for running the business?
2.1.2 If yes which of the following are the reasons for the same? Also explain each of the reasons
identified in detail.
REASON YES/NO
Undercapitalization due to lack of funds
Excess withdrawal by owner
Excess investment in inventory
High fraction of credit sales
Cash locked in non-productive assets
Not leveraging credit from suppliers
2.2 PROFITS
2.2.1 Is the enterprise making adequate profits?
2.2.2 If no, which of the following are the reasons for the same? Also explain each of the reasons
identified in detail.
REASON YES/NO
Low sales turnover
Underutilized capacity
Improper Pricing
High overhead costs
High interest costs (Loan taken from money
lenders)
2.3.2 If yes, which all books of accounts does the entrepreneur maintain?
2.3.3 If no, why doesn’t the entrepreneur maintain the book of records?
2.4 FINANCIAL PERFORMANCE OF THE ENTERPRISE
2.4.3 Prepare a profit and loss statement for the past two months in the table below.
Peak Season
Item Month 1 Month 2
(Avg. Monthly)
Opening Cash Balance
Purchase of fixed assets
Cash payment to
suppliers
Other Cash expenses (All
Cash expenses excluding
out interest)
flows
Interest paid
Loan principal repaid
Cash withdrawal
Total Cash out flows
Cash In Cash Sales
flows Cash paid by Debtors
Total Cash in Flows
Net Cash Flow (Cash in – Cash out)
Closing Cash Balance
3. OPERATIONS AUDIT
3.1 Which of the following issues are lacking in the enterprise under study?
Applicable to enterprise?
Issues
(Yes/No)
Obsolete technology/machinery
Poor Infrastructure/Lack of space
Lack of skilled labor
Low Capacity Utilization
High wastage of raw materials/inventory
Poor Quality raw materials
Difficulty in sourcing raw materials
Poor Maintenance
Lack of inventory management (Running out of stock/High stock)
Profit percentage/share
Product/Service/Business diversification
Remarks
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