06/03/2026
Jai Shree Ram Chandra is Great 🙏✨
Internal Audit Instructions – Purchase, Work Order & Invoice Validation
1. Pre-Audit of Purchase Orders (PO):
Verify and validate Purchase Orders by reviewing quotation comparison, NFA approval, DOFP limits, material specifications, payment terms, contractual clauses, statutory compliance, PR approval, and stock availability before final approval.
2. Stock & Consumption Review:
Assess current stock levels, identify possibilities for stock transfer between locations, and analyze historical consumption patterns to avoid unnecessary procurement.
3. Pre-Audit of Work Orders (WO):
Validate Work Orders after reviewing quotations, NFA approvals, DOFP limits, cost sheets, service requests (SR), and compliance with statutory and contractual requirements.
4. Invoice Pre-Audit:
Review invoices processed through the Accounts Payable portal and ensure they are supported by valid Purchase Orders or Work Orders and related documents.
5. Payment & Deduction Verification:
Confirm payment terms, penalty clauses, deduction provisions, and vendor ledger balances before approving invoice payments.
6. Timely Processing:
Ensure Purchase Orders and Work Orders are reviewed and validated within the prescribed timelines.
7. Daily Monitoring:
Maintain daily activity records and status updates for Purchase Orders, Work Orders, and invoice validation activities.
8. Departmental Coordination:
Coordinate with user departments, stores, and the purchase team to complete PO, WO, and invoice validation processes efficiently.
9. Internal Audit Support:
Provide assistance during internal audit assignments across different departments and operational areas.
10. Purchase Audit Participation:
Actively participate in purchase audit assignments to ensure procurement activities comply with company policies and procedures.
11. MIS Reporting:
Provide timely and accurate inputs for departmental MIS reports, including tracking and consolidation of audit activities.
12. Internal Audit Report Preparation:
Prepare internal audit reports independently, ensuring findings are clearly documented, supported with evidence, and properly communicated.
13. Special Audit Assignments:
Conduct special audit assignments as required and report findings and recommendations to management.
14. Audit Discussion & Action Plan:
Discuss audit observations with concerned departments and follow up on management responses and corrective action plans.
15. Vigilance / Investigation Audit Support:
Assist the Head of Department (HOD) in vigilance reviews and investigation audits.
16. Action Taken Report (ATR):
Evaluate management actions taken on previous audit observations and prepare Action Taken Reports to track compliance.
17. Strengthening Internal Controls:
Provide recommendations to strengthen Standard Operating Procedures (SOP), company policies, SAP controls, and Delegation of Powers (DOA).
18. Fraud Prevention & Detection:
Monitor processes to identify risks and support initiatives aimed at preventing and detecting fraud.
19. Audit Reporting Support:
Assist in compiling audit findings, documentation, and reports for submission to the Head of Department.
20. Additional Assignments:
Perform any other duties or assignments assigned by management or the Head of Department as required.
21. Professional Competency:
Maintain strong knowledge of accounting, auditing standards, and compliance requirements.
22. Industry Knowledge:
Develop and maintain understanding of operations in manufacturing, steel, process, or power industry environments.
23. Analytical & Communication Skills:
Apply strong analytical, communication, and presentation skills while preparing and presenting audit observations and reports.
24. Integrity & Ethical Conduct:
Maintain high standards of integrity, confidentiality, and professional ethics in all audit activities.
25. Performance Monitoring:
Track and evaluate past audit outcomes and performance for continuous improvement.
26. Business Travel Readiness:
Be prepared to travel to different locations as required for audit assignments, inspections, or investigations.
