Audit report

During the furrow count e observe the following weaknesses and go out the risks associated with them and developed following suggestions to develop controls to address these weaknesses. The enlarge of these atomic number 18 as follows 1 . Excessive Accessories stocks set as compared to system tarradiddle. Observations- During the audit we observe that virtuall(a)y of stock physically available is in dissipation as compared to the stock as per stock report. For details of these please, work through annex A. Later on discussion with store uncharged Mr..Adele it came to know that, this problem occurred due to stock shifting, adjusting stock report, bulk cadence counting of stock really with routine activities etc. Some Grins and store issues are also non mightily posted in time, that is why this issue raise. Recommendations- The posting issue should non have either excuse store group should manage their time to post all types of documents in system to modify the stock re port. It is also recommended that store team should adopt the policy of efficiency instead of effectiveness. 2.Less quantity of stocks set physically as compared to Accessories stock report. Observations- We observed that some stocks in actual are less as compare to reported quantity. For details of these, please come up annex B. Recommendations- It is recommended to post issuance in system carefully and posting of issuance should be checked on cursory basis. We recommended that the issuance take h nonagenarian should be systematized and in new software this document leave behind move as prepared by, authorise by and deliver by and finally system post this issue automatically. 3. Stock non lay down physically just mentioned in stock report.Observations- During the audit we observed some quantity of stock non physically in store 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 shi fting of store items o new place and some issuance are also not posted/mis primed(p), thats why these items video display in report. It is recommended that all issuance should be posted 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 resolve this problem the store team should train the approval of management, and after approval they have to adjust the stock accordingly. 4. Items not in report but physically exist During the course of audit it was engraft that some of the items are physically exist in he store but there is no shew of these in the accessory report. For details of these please, see annex D. Recommendations- It is recommended that store issue returns essential be recognized when received at store.Proper record and physical stock must be kept by the store team. 5. Old Stock found in store During the course of audit it was found that lot of space was think ofed by sexagenarian stock this stock is not in use since more than 2 year as per education 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 item will be considered a part of dead stock.By doing this, dead stock will be separated from old stock. After this, dead stock should be change at reasonable price and old stock should be properly placed at certain area with label of old stock and should not be mixed with fresh stock. When this old stock will not be used 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 such as LABEL and THREAD are placed in different separate in a few boxes. . Thread of one justness found in different boxes and in different places and some 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 can 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 excogitation of safety stock was not being considered by the store management.The different routine items like stationary, kitchen items, some stitching general items like needles, commonly use thread and stitching aching spare parts etc. Dont have each safety stock formula, and this problem can stuck the flow of work. It is recommended that store team should be provided with all information about crucial items of different incisions which may 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 this smooth running of flow work can be ensured. They should also consult 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 create risk like decrease in the think of 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 knowledge 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 grin after receiving he store issue requisition and ZIP from the department.Recommendations- It is recommended that if there is any item require urgently in any department and they purchas e this on emergency basis, then 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.