Please Help: Internal control
Posted Date : 30-Jun-2012 , 08:00:15 pm | Posted By: Vikash Kumar Jha
Category :
Audit | Answers :
4|
Comments :
0| Hits: 260
|
|
Raw jute purchase by jute mill is weighed on trolleys and the jute purchase officer who is present at the time of weighment record. So i just want to know that wether proper control exits here or not. Please dont forget to mention reasion behind this. I am waiting |
 |
|
|
Answers:
|
 Answer by: Krishna Chandra Santi |
| No, proper control doesn't exist here. Because the event is related to purchase department. And the purchasing officer who is present at the time of recording also relates to the same department. Thus there may be question of manipulation in such transaction.
It requires, that there must be another person present from another department who can handle such operation, to maintain the internal control effective.
|
| Answer by: Rishabh Upadhyay |
| Purchase office will ideally come under Procurement section, while Purchase Department will comprise of Procurement as well as Purchase Finance section. So the person responsible for procurement of jute and person booking the purchase transactions and then releasing payments are two independent persons.
|
| Answer by: Rishabh Upadhyay |
| Moreover what is the process we are talking about here.. internal controls on the weighment of jute or internal controls for forge/excess payments for defective/lower quality material
|
| Answer by: Vikash Kumar Jha |
| Rishabh sir actualy i want to know overall proper internal control exist or nor whether it related to any stage which will be involve into this case
|
|
|
|
|
|
|
