ABC Company Ltd.

1 Internal Audit Report

Internal Audit Report

INVENTORY Audit Period: ________________________

April 22, 2013

Distribution List: Chief Executive Officer (CEO) CFO

ABC Company Ltd. 2 Internal Audit Report

EXECUTIVE SUMMARY Background

Internal Audit Department conducted the Physical Stock Count as on __________, detailed Examination of Stores spares issuance for the period of 1st Jan-13 to 31st Mar-13. Furthermore, we carried out an assessment of related internal controls and identified some risky / critical issues to be reported.
Scope

The scope of the audit includes: Accuracy & completeness of Stores issuance including packing material. Assess the adequacy of overall controls and process. Physical verification of stock.
Objective and Results

The audit evaluated the adequacy of controls and processes to achieve key business objectives as it related to Inventory. Following are the business objectives and related control assessment (Satisfactory, Needs Improvement, and Unsatisfactory) and a summary of good and weak controls noted in the audit.
Business Objectives Control Assessment Satisfactory Satisfactory Needs Improvement

Accuracy, Existence and completeness of stock Accuracy & completeness of Stores issuance including packing material Assess the adequacy of overall controls and process

April 22, 2013

ABC Company Ltd. 3 Internal Audit Report Control Summary Good Controls Weak Controls List down the good List down the week controls controls observed during observed during the audit the audit with brief discussion and then each point should be explain in next section in details.

April 22, 2013

ABC Company Ltd. 4 Internal Audit Report

OBSERVATIONS AND ACTION PLAN

Following is a table detailing all the observations from the audit along with managements action plan to address these issues . 1Observation # 3 (Store Issuances) Risk Ranking

HIGH

Explain the details of the observations listed down above in control summary section.

Effect Explain the effect of the limitation/non compliance/ issue observed during the audit`.

Recommendation Recommend the appropriate procedures to be implemented by management. Action Plan (Management Response) Estimated Completion Date Ask management to Please prepare management action plan for implementation of the above recommendation. (Insert Management Response here) Person Responsible

April 22, 2013

ABC Company Ltd. 5 Internal Audit Report

Observation # 2 Risk Ranking

HIGH

Explain the details of the observations listed down above in control summary section. Effect Explain the effect of the limitation/non compliance/ issue observed during the audit`. Recommendation Recommend the appropriate procedures to be implemented by management.

Action Plan (Management Response) Estimated Completion Date Please prepare management action plan for implementation of the above recommendation. (Insert Management Response here) Person Responsible

April 22, 2013

ABC Company Ltd. 6 Internal Audit Report

ANNEXURE 1:

April 22, 2013