A list of various processes in the organization where

internal controls can be defined in such a way which

ensure the orderly and efficient conduct of its
business, including adherence to organization's
policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and
completeness of the records, and the timely
preparation of reliable information.

A list of

Internal Controls effectively

redefined

Processe
s

About CoreIA
In addition to monitoring for various compliance of laws and book keeping,
management of entity expects establishment of enhanced internal controls,
systematic monitoring of plan v/s. performance of organizations activities,
measures to improve the efficiency of existing flow of financial information,
monitoring for implementation of these measures, to bring value to the
organization, risk based approach and global practice without diluting
existing & traditional fundamentals.
Our multi-disciplinary team constantly engaged to develop best business
practices, knowledge database and the ability to leverage on the
professional expertise by technical experience and financial acumen.
This program provides information to management on various internal
controls and guidance to implementing internal auditors. By using
information received from this program, management and internal auditors
can get object-wise practical understanding.
Information on this presentation and on www.coreia.in will provide an
opportunity to learn more about some of the major issues that are shaping
the world today to provide reasonable assurance that financial information
is reliable, there is compliance with applicable laws and regulations and the
organizations operations are effectively controlled.
Wish you internal controls effectively redefined.
Thanks.
CoreIA Team

www.coreia.in
Top 20 areas / processes in the organisation where internal
controls can be strengthened:
1. Human resources / contract labour / men power supply agency
2. Inventory / warehouse operations
3. Security gate operations
4. Procurement and vendor management
5. Production operations (includes yield, waste / scrap)
6. In-house production / outside job work / third party operations
7. Quality check operations
8. Logistics / supply chain / distribution / branch / CFA operations
9. Product Sales operations and customer management
10. Services Sales operations and customer management
11. Advertisement and sales promotion activities
12. Accounts, accounting standards, budgets and cost
management
13. Safety measures, insurance coverage and claims tracking
14. Direct and indirect taxes
15. Corporate law & legal compliances
16. Commercial and other laws
17. Fixed asset / capex
18. Finance and treasury management
19. ERP / SAP / portals / customised software / e-system
20. Management information system / strategic management
committee
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HUMAN RESOURCES / CONTRACT LABOUR / MEN POWER
SUPPLY AGENCY:
Verification of joining to leaving procedure, documentation, accounting
entries of on roll and off roll human resources. Further, it includes
verification of attendance recording and processing, complaint resolving
system, compliance of labour laws, adherence of company policy, employee
loans advances & assets, travel & conveyance, controls in ERP/SAP etc.

INVENTORY / WAREHOUSE OPERATIONS:

Verification of material categorisation & classification, inventory records,
inventory levels, stacking norms, gate entry v/s. GRN v/s. invoice, inventory
ageing, BOM, wastage, inter department transfer, overdue RGP, cross check
of NRGP, location wise inventory, perpetual physical verification of stock,
safe keeping of warehouse records, adherence of company policy, controls
in ERP/SAP etc.

Process-wise brief
scope of internal
control verification

SECURITY GATE OPERATIONS:

Verification of material movement at security gate, security gate timing
policy, personnel in-out recording at security gate, safe keeping of records,
controls in ERP/SAP etc.
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PROCUREMENT AND VENDOR MANAGEMENT:
Verification of purchase requisition to payment in defined timeline &
documentation, recording of rejection & intimation, approval procedure for
deviation, MSMED vendors, new vendor development, vendor blocking,
confirmation and balances reconciliation, GRN without of PR / PO, purchases
from unregistered dealer, adequate tolerance, bill to bill payment tracking,
tax code, unplanned delivery cost, adherence of company policy, controls in
ERP/SAP etc.

PRODUCTION OPERATIONS (INCLUDES YIELD, WASTE /

SCRAP):
Verification of BOM approval, production planning, production order, yield /
waste / scrap norms, stock at production floor, shop floor rejection,
recording of scrap / waste generation, batch manufacturing report, planned
production v/s. actual production, overtime usage, preventive maintenance
plan, adherence of company policy, controls in ERP/SAP etc.

Process-wise brief
scope of internal
control verification

IN-HOUSE PRODUCTION / OUTSIDE JOB WORK / THIRD

PARTY OPERATIONS:
Verification of agreement / contract, men power deployment & in-out
records of job processor, defining material for in-house or outside job,
record keeping of material sent for outside job, stock lying at third party
location, job processor quality checking, delay / pending receipt of material
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sent for outside job, cost benefit analysis, adherence of company policy,

www.coreia.in
QUALITY CHECK OPERATIONS:
Verification of selection of QC sample, QC criteria, deviation & approvals, QC
sample retention & disposal, authorisation & documentation of quality
reports, delayed / pending clearance from QA department, QC release
strategy in system / manual, adherence of company policy, controls in
ERP/SAP etc.

LOGISTICS / SUPPLY CHAIN / DISTRIBUTION / BRANCH / CFA

OPERATIONS:
Verification of logistics policy, Mechanism to monitor delay in
transportation, carrier selection / evaluation procedure, premium freight /
regular freight / discounted freight, controls in ERP/SAP etc.

PRODUCT
SALES
MANAGEMENT:

Process-wise brief
scope of internal
control verification

OPERATIONS

AND

CUSTOMER

Verification of inquiry to order finalisation, order to collection monitoring

with timeline, credit policy, discount / trade scheme configuration,
confirmation and balances reconciliation procedure, export incentive
accounting and claims, statutory forms, adherence of company policy,
controls in ERP/SAP etc.
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SERVICES
SALES
MANAGEMENT:

OPERATIONS

AND

CUSTOMER

Verification of records of customers covered under AMC / warranty / call

basis, service report preparation and submission, accuracy of information
filing in the service report, authorisation for service on free / lower rate,
engineer / employee wise service execution monitoring, monitoring over
schedule of service under AMC, advance received vs. service provided,
review over cancellation of AMC / call basis service, direct expense
recovery, complain register and its closure, repeat complains and training
procedure, adherence of company policy, provision of service or warranty
expenses, controls in ERP/SAP etc.

ADVERTISEMENT AND SALES PROMOTION ACTIVITIES:

Process-wise brief
scope of internal
control verification

Verification of plan of advertisement and budget, selection of advertisement

type considering target time / users / product / location, segregation of
budget over different activities, rate negotiation / advertisement period and
other terms like (GRP / CPRP / Timing), Monitoring over unexecuted spots or
change in spots committed, positioning of advertisement in the slot of
program, usage of promotional items in the different languages considering
location / user, promotional materials for the scheme / product launch /
specific day, closure procedure for completion of scheme / product launch /
specific day / display, processing of advertisement bills with deviations,
evaluation mechanism for placing of hoarding, adherence of company
policy, controls in ERP/SAP etc.

DIRECT AND INDIRECT TAXES:

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ACCOUNTS, ACCOUNTING STANDARDS, BUDGETS AND
COST MANAGEMENT:
Verification of book keeping, authorisation matrix, document management,
detailed expense booking procedure, balance reconciliation and verification,
account creation / grouping / chart of account, trackers of EMD / deposits /
loan and advances / investments, capital expenses / revenue expenses, cutoff date transactions, budget vs. actual expense, inventory valuation as per
costing, adherence of company policy, controls in ERP/SAP etc.

CORPORATE LAW & LEGAL COMPLIANCES:

Verification of deeds / documentation / registers / records as per act,
compliance related to directors, loans / advance / RPT, Deposits, RC49,
compliance with different sections / rules, submission of required forms /
returns / information to ROC, internal financial controls, schedule VI,
depreciation requirement, disclosure to be made in financial statements etc.

Process-wise brief
scope of internal
control verification

SAFETY MEASURES, INSURANCE COVERAGE AND CLAIMS

TRACKING:
Verification of HACCP methodology and documentation, GMP policy,
prerequisite HACCP programs, adequacy of insurance (assets, inventory,
employee, WC, transport, medical etc.), claims tracker, adherence of
company policy, controls in ERP/SAP etc.
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www.coreia.in
COMMERCIAL AND OTHER LAWS:
Verification of compliance of the Factories Act, 1948, The Apprentices Act,
1961, Minimum Wages Act, 1948, Contract Labour (R&A) Act, 1970,
Payment of Gratuity Act, 1972, Payment of Bonus Act, 1965, Payment of
Wages Act, 1936, adherence of company policy, controls in ERP/SAP etc.

FIXED ASSET / CAPEX:

Verification of assets budgeting and approval procedure, addition /
disposal / impairment / depreciation, component accounting, identification
coding procedure, fixed assets register, recording of shifting of location /
division, divisional accounting, physical verification, adherence of company
fixed assets policy, compliance with AS & IND AS, controls and recording in
ERP/SAP etc.

FINANCE AND TREASURY MANAGEMENT:

Process-wise brief
scope of internal
control verification

Verification of existing capital budgeting to its execution / terms / deeds /

documentation / servicing / CBA, available excess funds and its investment
to achieve objective with optimum returns, adherence of company
borrowing & investment policy, controls and calculations in ERP/SAP etc.

www.coreia.in
ERP / SAP / PORTALS / CUSTOMISED SOFTWARE / ESYSTEM:
Verification of user access controls / application controls, usage of controls
through ERP-SAP, controls over various web based input-output portals,
controls and linkages of customised software with ERP-SAP, backups,
security controls of IT infrastructures, maximum usage of available Esystem etc.

MANAGEMENT INFORMATION SYSTEM (MIS) / STRATEGIC

MANAGEMENT COMMITTEE (SMC):
Verification of existing structure and extent of MIS-SMC, area-wise coverage
and efforts of improvement, controls on adequacy of presentation by
departmental heads, controls on implementation of out comes form MISSMC, minutes of meeting / action taken reports / pending compliance /
agenda, adherence of company policy, controls & MIS through ERP/SAP etc.

Process-wise brief
scope of internal
control verification
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What we expect from you?

Thanks

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conduct the presentation to shape up a broader view of internal
controls area in your organization.

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presentations to have insight on practical aspects of processwise Internal Controls.

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