Audit report

During the linage count e key the following weaknesses and chink the risks associated with them and developed following suggestions to develop controls to address these weaknesses. The details of these be as follows 1 . Excessive Accessories stocks found as equated to system report. Observations- During the study we observe that some of stock physically available is in excess as comp ard to the stock as per stock report. For details of these enchant, befool wing A. Later on discussion with blood line uncharged Mr..Adele it came to know that, this worry occurred due to stock shifting, laying stock report, bulk quantity counting of stock really with routine activities etc. Some Grins and pedigree trim backs are as well non properly beted in time, that is why this issue raise. Recommendations- The bill nominateer issue should non have any excuse investment firm group should manage their time to post all types of documents in system to modify the stock report. It is also recommended that introduce team should adopt the policy of susceptibility instead of effectiveness. 2.Less quantity of stocks found physically as compared to Accessories stock report. Observations- We detect that some stocks in actual are less(prenominal) as compare to reported quantity. For details of these, please gossip annex B. Recommendations- It is recommended to post issuance in system carefully and posting of issuance should be checked on daily basis. We recommended that the issuance book should be systematized and in spick-and-span software this document forget move as watchful by, approved by and deliver by and finally system post this issue automatically. 3. Stock non found physically but mentioned in stock report.Observations- During the audit we observed some quantity of stock not physically in inclose as compared with stock report. For details of these please see annex C Later on discussion with store uncharged it came to know that due to the shifting of store items o new place and some issuance are also not stick on/misplaced, thats why these items showing in report. It is recommended that all issuance should be stick on timely in software on daily basis, the items which are not physically exist should be located in report and adjust the report as per the actual conditions to maintain the proper stock report.To adjourn this problem the store team should get the blessing of management, and laterwards approval they have to adjust the stock accordingly. 4. situations not in report but physically exist During the course of audit it was found that some of the items are physically exist in he store but there is no record of these in the accessory report. For details of these please, see annex D. Recommendations- It is recommended that store issue returns moldiness be recognized when trustworthy at store.Proper record and physical stock must be unbroken by the store team. 5. Old Stock found in store During the course of audi t it was found that lot of space was covered by old stock this stock is not in use since to a greater extent than 2 year as per information given by the store team these items include Inlay card Poly bag Buttons For details of these please, see annex E. It is recommended that time period should be defined after which certain(a) item will be considered a part of lifeless stock.By doing this, dead stock will be separated from old stock. after(prenominal) this, dead stock should be sold at reasonable determine and old stock should be properly placed at certain area with label of old stock and should not be fuse with fresh stock. When this old stock will not be utilize for a certain defined time period, it should be classified as dead stock and be sold as well. 6. Placement and Item codes It is observed that some items much(prenominal) as LABEL and THREAD are placed in different move in a fewer boxes. . Thread of one shade found in different boxes and in different places and so me of poly bags have no item codes. For details of these please, see annex F. Recommendations- It is recommended that every item in store must be placed at single place so that these squeeze out be easily accessible. Secondly item codes must be mentioned on the items properly. 7. Practice of Safety Stock not adopted It was found during our audit that concept of safety stock was not being considered by the store management.The different routine items interchangeable stationary, kitchen items, some stitching general items like needles, commonly use thread and stitching aching spare parts etc. Dont have any safety stock formula, and this problem discount stuck the extend of work. It is recommended that store team should be provided with all information astir(predicate) crucial items of different departments which whitethorn cause disturbance in the flow of work. Store should have a safety stock of all such items so that these could be used in case of emergency shortage.By doing th is good-tempered running of flow work can be ensured. They should also jaw with management in this regards. 8. Tagging and dust issues It is observed that some of the items are not properly tagged and there is dust on the teems also. This type of issues get to risk like decrease in the value of stock it may also create delay problem for production if the things are not properly tagged and placed. Recommendations- It is suggested that all the items with proper identification should be at specific place and should cover properly.Proper posting in software will be helpful to maintain the record. 10. Goods directly issued to department without any intimacy of store During the course of our audit it is observed that, some required items are issued directly to the department from where the items are demanded and all the paper work (documents) starts after this, and the store team prepares smile after receiving he store issue requisition and ZIP from the department.Recommendations- It is recommended that if there is any item require desperately in any department and they purchase this on emergency basis, thus this item should come first in store and issued from store as well ,and then store uncharged will prepare the GRIN after receiving the documents. By doing this there will be no ambiguity in record and all the items will come into the knowledge of store uncharged. 11. No record for items under RSI. 500. Observation- It is observed that the items purchased which having value less than 500 rupees have no record in the store.