INTERNAL AUDIT REPORT FOR THE MONTH OF

NIVESHAN TECHNOLOGIES INDIA PRIVATE LIMITED

BY :
RJV AND ASSOCIATES
 CONTENTS

 Authority Matrix
 PO and Invoice Date
 Cheque and RTGS Series
 Record of RTGS Slips
 Payment voucher
 Payment before due date
 Delivery challan
 Manual calculation of TDS
 Maker and checker
Observation Regarding Authority Matrix

It has been observed that the authority matrix for PO

approval and invoice approval is not defined.

PO is raised by SCM department based on which order

requirement is placed to Vendor by SCM and payment is
made after that by finance department based on invoice
verification.

Recomendation :
It is suggested that PO’s should be approved by SCM
head and vendor empanelment list is to be approved by
management.
PO date Prior to Invoice Date

Observation :
Syscom Ventures Private Limited.
Invoice no : 186/2023-24
Dated : 29/07/2023
PO no : P2024/0113
Dated: 08/08/2023

Recomendations : PO’s are made based on requirements , any

change in line item should or any alteration should be made
in previous PO only. Or either attach the Old PO along with
the invoice.
 MAINTAINING OF CHEQUE /RTGS
SERIES

Obeservation :

 There is no track record of cheque number or

RTGS slips used.
 Neither any security register is maintained
for the same.
 Nor any cheque / RTGS slip number is
mentioned on payment voucher.
 Eg : Voucher no : 4016
 No record of RTGS slips used or missed

Observation :

There is no record of which RTGS slip is being used

as copy of RTGS slips are not being filled up nor any
record for missing RTGS slips is maintained.

Sample copy of RTGS slip no : 002121 , 002123 and

002124 taken.
Sample RTGS Slips already used.
Recomendation :

RTGS slip copies needs to be filled and attached with

the payment vouchers to maintain record for the
same in view of Audit Trail .
 Payment Voucher to be attached

 Observation :

Paymement voucher is not attached against payment made of

rs. 6,60,26,292/- made to Ingram against invoices mentioned in
the next slide .
Payments before due date

 Observation :

 Payment terms are mentioned as 60 days on

invoice no- 187/2023-24 , invoice dated
29/07/2023.
 However payment is made on the same date
as 29/07/2023.
 Itseems payments are made much before
the due dates.
Recomendation

 It is suggested that payments should be made on due date

instead making the same way before the due date to save
interest .
Delivery Challan

 Observation :
 Payment vouchers are not supported by delivery
challans.
 Payments are made on the basis of confirmation by
SCM Department.
 Debit note or credit note also posted after
confirmation from SCM department.
Recomendation :
 It is suggested that proof of delivery is to be attached
along with payment voucherto ensure check by
finance department.
Calculation of TDS

 Observation :

 TDS is calculated manually by the user

while generating the invoice.
 Calculation
of the same is not supported by
any document.
 Eg : In voucher no 4016 against invoice
no : 2023-24/45 , 47, 48,59,63,64,65,67 of
server clinic.
Recomendation

 It is recomended that TDS is to be calculated by system it

self based on the services provided.
 Since invoices could be generated by different users ,
manual error is possible .
 Maker and Checker

Observation :
Although payments are approved in voucher
payment control checklist.
However there is no maker checker in invoice
processing , purchase order generation ,
creation of payment voucher which involves
several manual calculations too like putting
Qty , rate , TDS, Installation charges in
system while generating the payment voucher.
Recomendation :

 There should be maker checker policy in invoice , Po and

payment voucher too.
 Proper controls and checks should be
there.
Non Mentioning of PO no, Terms of delivery,
Mode of Payment

Observation:
It is observed that PO no, Mode of delivery and
Terms of payments are not being mentioned on
Vendors invoices for eg : Invoice no : SC/2023-
24/45

Recomendation:
It is suggested that all the above terms should be
mentioned on vendors invoice to maintain audit
trail.
THANKS AND REGARDS

CA KAVITA MEHNDIRATTA