AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

AUDIT TITLE Data Source & Accuracy Audit

DIVISION BAICS
DIVISION
Mutaz Abu Jreis
CONTACT
AUDIT
Feb 19, 2024
DATE(S)
5 business days from the date submitted to Auditee1
RESPONSES
REQUIRED BY
1 business day from the date submitted to Auditee (for Critical
Observations)

AUDITORS Abdulqader Ahmed

SOPS
REVIEWED
AUDIT
To automate, prevent errors, correct accuracy & source of data by BAICS.
OBJECTIVE
To review the accuracy & source of information submitted to Management
AUDIT SCOPE
by BAICS department.
AUDIT
As per the Institute of Internal Auditors & concrete industry best practices
CRITERIA
PERSONNEL
All BAICS team, Aya Ramzi, Thamer Jared & Ranjith
INTERVIEWED

1
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

AUDIT RESULTS
Overall Audit Grade: The audit reflected BAICS Observations that include data nonconformity
issues, classified as follows (see the Audit Observations section below for details):

NUMBER OF
RATING
OBSERVATIONS

Critical 1
Nonconformities Major 1
Minor 0
Process Improvement Opportunities 2
Good and Best Practices 2

Overall Comments:
1. Source documentation, when requested, was located by the auditee for BAICS data elements
reviewed on the excel forms provided by Sales & Project Director teams.

Overall Recommendations:
1.

Instructions for Audit Response:

Please provide a written response to each observation listed in the tables below. To fully address the
observations, it is necessary to investigate and determine the root cause of each nonconformity and
include a corrective and preventive action plan for each finding with proposed completion dates.
Note:
o Critical and Major audit observations require an investigation to include root cause analysis and
appropriate corrective actions and preventive actions (CAPA) to address the root causes.
o Minor audit observations only require appropriate corrective action (root cause analysis and
preventive action are optional).
Provide the proposed action plan to the lead auditor for preliminary review to ensure that appropriate
corrective and preventive actions will be taken.
As CAPA activities are completed, the auditee provides, to the lead auditor, objective evidence of
completion for each action implemented.
Corrective Actions – Action taken to correct the cause(s) of a detected nonconformity or other
undesirable situation.
Preventive Actions – Action taken to prevent recurrence or eliminate the cause of a potential
nonconformity or other undesirable situation.
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

Report Distribution
NAME OF RECIPIENT TITLE / JOB FUNCTION
Mr. Sultan Bin Jarra CEO
Mr. Osama Al Bilbaise CFO
Mr. Mutaz Abu Jreis BAICS Manager
Mr. Ranjith Kolangada Project Director
Ms. Jany Akiki Business Development Manager
Mr. Ahmed Hamdy Operation Manager
Auditor File (Original) Internal Audit Department
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

Documents Reviewed
ATTACHMENT DESIGNATION
DOCUMENT TITLE (IF COPIED / ATTACHED TO
REPORT)

forms and associated source documentation from the

BAICS Depatment:
- Emails
 Tawasul Dashboard
- Screenshots of
 Planning Vs. Actual Dashboard
dashboards
 ERP
- Verbal interviews
 Job Card Dashboard
 GeoTech Dashboard

List of Abbreviations and Acronyms

BAICS= Business Analysis & Internal Controls
SOP = Standard Of Procedure

The signatures below indicate that the audit report has been reviewed and approved for
distribution to the Auditee.

SIGNATURE DATE:FEB 19, 2024

TITLE: GROUP INTERNAL AUDIT MANAGER

CEO SIGNATURE DATE: FEB 19, 2024

TITLE: CEO
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

Audit Observations
OBSERVATION Sales
1 CLASSIFICATION RATING Critical
NUMBER Forecast Data

OBSERVATION: sales forecast data are collected by sales team a call/emails with clients
wihtout verification from their side however, shared with project director for verification but no
clear/writtend formula is followed to validate the sales forecast.
EXAMPLES:
Feb 2024 forecast was validated based on internal experience & contact with some clients.
RECOMMENDATIONS
Automate & set a clear formula in the ERP system to have the figures entered by sales,
validate by Project Director, operation manager & BAICS manager.
RESPONSIBLE PARTY: BAICS Manager

RESPONSE (TO BE COMPLETED BY AUDITEE OR RESPONSIBLE PARTY)

INVESTIGATION RESULTS (PROVIDE ROOT CAUSE FOR CRITICAL AND MAJOR

NONCONFORMITIES)
Critical impact on management decision due to nonconformities of sales forecast validation
CORRECTIVE ACTIONS (REQUIRED
FOR CRITICAL, MAJOR, AND MINOR
NONCONFORMITIES)

DATE
TARGET
PERSON COMPLETED
NO. ACTION DELIVERABLE COMPLETION
RESPONSIBLE (DATE/
DATE
INITIALS)

Set a clear formula in ERP Sales

1. Yes
to calculate sales forecast manager
ERP should notifies
project director, operation
IT & BAICS
2. manager & BAICS Yes
Dept.
manager to validate sales
forecast.
Adjust the measurement
of diesel consumption BAICS
3. Yes
from Cubic Meter to manager
Kilometer/hour.
4. ERP to calculate actual Yes IT & BAICS
vs. forecasts & Dept.
automatically send the
report on weekly basis to
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

OBSERVATION Sales
1 CLASSIFICATION RATING Critical
NUMBER Forecast Data
CEO,CFO…etc.
PREVENTIVE ACTIONS (REQUIRED FOR CRITICAL AND MAJOR NONCONFORMITIES)

DATE
TARGET
PERSON COMPLETED
NO. ACTION DELIVERABLE COMPLETION
RESPONSIBLE (DATE/
DATE
INITIALS)

Set a written policy for Sales

1. Yes
monthly sales forecast manager

ERP to notifies BAICS

manager & block BAICS
2. Yes
unfavorable variances in manager
diesel consumption..etc.
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

RESPONSE COMPLETED BY: DATE

OBSERVATION
1 CLASSIFICATION RATING
NUMBER

RESPONSE ACCEPTANCE - TO BE COMPLETED BY AUDITOR

Does the investigation and response address the observation adequately?

Yes No (return form to the responsible party for additional investigation)

Will the corrective actions cause any negative effects to other processes?
Yes (return form to responsible party to address potential negative affects) No

Will the corrective actions cause any negative effects to other documents?
Yes (return form to responsible party to address potential negative affects) No

Will the corrective actions cause any negative effects to other groups?
Yes (return form to responsible party to address potential negative affects) No
RESPONSE ACCEPTANCE COMPLETED BY: DATE

OBJECTIVE EVIDENCE VERIFICATION (DESCRIBE ACTIONS TAKEN TO EVALUATE

EFFECTIVENESS)

FINDING STATUS

Complete (actions completed and verified to be effective)

Ineffective (actions completed but subsequent issues noted) – return to responsible

party for additional investigation and actions (use another form if necessary).
VERIFICATION PERFORMED BY: DATE
 AUDIT PLAN AND REPORT

AUDIT NUMBER: AUD-2024-AAA-001

Process Improvement Opportunities (formal response not required)

ITEM
PROCESS IMPROVEMENT OPPORTUNITIES
NUMBER

1 Written communication of the sales forecast

Communicate the forecast when validating with all stakeholders (project
2 director, sales manager, BAICS manager, operation manager & all plant
incharge officers)

Good and Best Practices (no response required)

ITEM
GOOD AND BEST PRACTICES
NUMBER

1 Accurate calculation procedures of ERP system based on input data.

2 Live assets pool & location details (Tawasul Dashboard)