Open Points on Admin and Supervision & General Plant Overhead

As I have seen, the MDR (Materials Disposition Request) report Format that you have sent to KPMG will be more detail if we can add some detail columns :

(1) Item Code/Item Name/ Batch No/Doc No/Request No or whatever reference of MDR-able items. (Location/Org. like Depot,Plant etc are already there)

(2) UOM(Unit Of Measurement)

(3) Qty

(4) Weighted Average Rate of the item and then Total

If the summary report says $50000 is the total amount of MDR (Materials Disposition Request); individual Location & Item & Rate must agree the Total. Otherwise, whether the Report is generating the correct amount or not, how we will match/confirm! If the system has any other means to answer to this issue, that will be great!

Open Points on Admin and Supervision & GPO (General Plant Overhead):

Admin and Supervision
For all non plant employees the salary to be costed under admin and supervision code

GPO
If a person doesn't fall under any of the above category


Additional Points
The LOB segment will be kept as 999 as the payroll costing will be bifurcated on company, location, account, department and employee segments only.

For division heads/ employees who are overheading more than one org., if required the salary cost is to be distributed provided the distribution percentage and appropriate cost center codes are provided

Material Loan scenario solution has been implemented

Material Loan scenario solution has been implemented and tested successfully by Costing Team. If you need a demo for that we can discuss this together on next working day in Sonata. Costing Team will provide a report format which will be developed only for material loan.



I have created PO and GRN for Ingredients which are mention in attach file.

I have create a Purchase Order and Shipment for this “1018000140” ingredient required item. PO and shipment are below.

I have create a Purchase Order and Shipment in CRP instance, those items which are in attach file. Purchase Order, Shipment and other information are in attach file.

Please read the message from OPM Consultant below and join the discussion session mentioned in the tabular format. Looking forward in seeing you in the session. 

Kindly schedule a meeting as requested by Head of ERP Project this Saturday.

Skilled migration visa option assessment for anyone

Thanks for your email and contacting us. Please note that you require 7 in each band to assess your skill. But I am unable to assess your eligibility to apply for migration in Australia as I don't have full information (detailed work experience and duration in each job, education details with year of passing and date of birth).

Thank you for your email with the details for Skilled migration/ visa option assessment.

Assuming we can obtain the needed skills assessment (and the qualifications/ overseas education provider(s) are recognized), the Australian authorities accept the relevance and term for work experience based on documentary evidence submitted and we can obtain the required State government support, see points allocation below:

The finance team needs to meet Engineering team today between 10.00 am to 10.30 am. Can you please communicate to Finance, Fixed Assets, Costing to come to IBD to meet the Engineering team ?

This is gentle reminder for all of you, still I am waiting from your response, hope I will get it very soon. Please as mention earlier this is very important to finish by this week. Considering the urgency please let me know your concern by Tuesday. Looking forward to your early co-operation.

Data Master on GxP critical processes

Please find attached Expense Data Master. I prepared this Expense Data Master on the base of our legacy Data Master. If you find any head of Expense not available or require to add newly please let me know. I have to finally submit the Expense Data Master by 15th of November,2012. So that I am expecting all of you please send back to me before 15th November,2012.

Together we can make a good Expense Data Master. Your effort regarding the same purposes are very much appreciated

Please find the corrected General data master file. In this file I added some Operations & Activity. Those are:

Under Operation:

1. Sugar drying

2. Sugar milling

Under Activity:

1. Dry mac Setup

2. Sugar Drying

3. Dry mac Clean

4. Mill mac Setup

5. Sugar mill

6. Mill mac Clean

7. Bottle Washing

8. Bottle Drying

9. Wrap mac Setup

10. Bottle Wraping

11. Wrap mac Clean

Please review the arrangement of Data Master of Potent 1 & Potent 2 in your given format. Please let me know whether I am in a right track or please advise me what to correct/alter in it.  In the mean time, I am working on Data Master of Cepha & Pen which look more critical than Potent . Please let me know how to show Secondary Packing Area and Power Plant in the template.   

Please find the blank UAT template for documenting test scenarios as an attachment to this email. Please note that this template should be used only for the non GxP critical processes. For the GxP critical processes, we shall use the DHC recommended template as described by OPM team. Should have any query, please feel free to contact KPMG team.

Precautions should be taken with Test Checking Techniques

Generally, a large manufacturing concern is associated with a large volume of transactions. Also, the nature of the transactions is determined by the nature of the business. Depending upon the product lines, the sales mechanics may be different for different products - some may be to dealers and agents, some to wholesalers and some others even to retailers and consumers directly. Sales and purchase operations may stretch even to overseas markets. There may be various forms in which such a concern can raise bank finance, like letter of credit, packing credit, overdraft, bills discounted, etc. Basically, in a large manufacturing concern the problem is the problem of volume and variety.

In the circumstances when necessarily the test check technique has got to be adopted for audit work, it should be done by taking certain precautions so that a reliable idea about the truth and fairness of the accounts can be obtained by the auditor. The precautions that should be taken may be the following :

(i) The transactions of the concern should be classified under appropriate heads and may be stratified if wide variations are there between transactions of the same kind.

(ii) Systems and procedures for entering into and processing a transaction right from the beginning to the end should be studied in a sequential order. It involves questions of authorizations, documentation and recording and evidencing the same.

(iii) The whole of the system of internal control in the areas of accounts and finance should be studied and evaluated for its efficiency, soundness and capability for producing reliable accounting and financial data. This can be done by studying the controls and internal checks, evaluating their general soundness in the context of the business of the concern and testing their actual operation. If, and only if, the auditor is satisfied about soundness of the controls and their operation in actuality, can he decide to have test checks. For testing the operation of the control system, he should select a few transactions and check them in depth by the application of procedural tests.

(iv) A properly thought-out test check plan should be prepared and the objective of each check should be clearly understood by the auditing staff. For example, each voucher may be checked by the test check method for a number of objectives - one may be to ensure that the cash payments are properly authorised and acknowledged, others may be to see whether the amount actually payable has in fact been paid and whether the payment has been debited to the proper account. If there is a mix-up in the objectives or the objective is to test a number of variables in one test scheme, the result may not be helpful. Hence it requires a clear definition of the audit objective related to the particular test check plan.

(v) The transactions falling under each test-check plan should be selected in a manner so that bias cannot enter in the selection. For the purpose, selection should be made by reference to the random number tables.

(vi) Identification of the areas where test check may not be done. For example, if there are only 20 overseas sales in the year, it would be preferable to have them all thoroughly checked.

(vii) The number of transactions to be selected for each test-check plan should be predetermined. This can be done by deciding upon the degree of reliance that should be placed on the test-check result and the confidence that can be placed - the result to be obtained should be veering round the degree of reliance set up. Once the degree of reliance and the confidence level required in the audit for expression of the opinion have been decided, the number to be tested out of the given population can be easily known by reference to the statistical tables.

(viii) Errors that may be found may be material or immaterial in the context of the particular audit. Since errors of immaterial nature are not likely to distort the overall truth and fairness of the accounts, it is necessary to decide upon the criteria to judge what constitutes a material error. Further investigation of immaterial error may be avoided and only the material errors may be properly and thoroughly investigated.

What are the advantages and disadvantages of the use of an Audit Programme?

The advantages of the use of an Audit Programme are:

(a) It provides the assistant carrying out the audit with total and clear set of instructions of the work generally to be done.

(b) It is essential, particularly for major audits, to provide a total perspective of the work to be performed.

(c) Selection of assistants for the jobs on the basis of capability becomes easier when the work is rationally planned, defined and segregated.

(d) Without a written and predetermined programme, work is necessarily to be carried out on the basis of some ‘mental’ plan. In such a situation there is always a danger of ignoring or overlooking certain books and records. Under a properly framed programme, the danger is significantly less and the audit can proceed systematically.

(e) The assistants, by putting their signature on programme, accept the responsibility for the work carried out by them individually and, if necessary, the work done may be traced back to the assistant.

(f) The principal can control the progress of the various audits in hand by examination of audit programmes initiated by the assistants deputed to the jobs for completed work.

(g) It serves as a guide for audits to be carried out in the succeeding year.

(h) A properly drawn up audit programme serves as evidence in the event of any charge of negligence being brought against the auditor. It may be of considerable value in establishing that he exercised reasonable skill and care that was expected of professional auditor.

Disadvantages:

Some disadvantages are also there in the use of audit programmes but most of these can be removed by taking some steps which otherwise also contribute to the making of a good audit. The disadvantages are :

(a) The work may become mechanical and particular parts of the programme may be carried out without any understanding of the object of such parts in the whole audit scheme.

(b) The programme often tends to become rigid and inflexible following set grooves; the business may change in its operation of conduct, but the old programme may still be carried on. Changes in staff or internal control may render precaution necessary at points different from those originally decided upon.

(c) Inefficient assistants may take shelter behind the programme i.e. defend deficiencies in their work on the ground that no instruction in the matter is contained therein.

(d) A hard and fast audit programme may kill the initiative of efficient and enterprising assistants.

All these disadvantages may be eliminated by imaginative supervision of the work carried on by the assistants; the auditor must have a receptive attitude as regards the assistants; the assistants should be encouraged to observe matters objectively and bring significant matters to the notice of supervisor/principal.

Basic Principles of Audit Planning

As per Auditing and Assurance Standard-1, “Basic Principles Governing an Audit”, Audit Planning is one of the basic principles. Accordingly, it states : “The auditor should plan his work to enable him to conduct an effective audit in an efficient and timely manner. Plans should be based on knowledge of the client’s business. Plans should be made to cover, among other things :

(a) acquiring knowledge of the client’s accounting systems, policies and internal control procedures;

(b) establishing the expected degree of reliance to be placed on internal control;

(c) determining and programming the nature, timing, and extent of the audit procedures to be performed; and

(d) coordinating the work to be performed.

Plans should be further developed and revised as necessary during the course of the audit.”

SA-300 further expounds this principle. According to it, planning should be continuous throughout the engagement and involves :

• Developing an overall plan for the expected scope and conduct of the audit; and
• developing an audit programme showing the nature, timing and extent of audit procedures.

Changes in conditions or unexpected results of audit procedures may cause revisions of the overall plan of and the audit programme. The reasons for significant changes may be documented.

Objectives of Planning : Adequate audit planning helps to :

• Ensure that appropriate attention is devoted to important areas of the audit;
• Ensure that potential problems are promptly identified; 
• Ensure that the work is completed expeditiously;
• Utilize the assistants properly; and
• Co-ordinate the work done by other auditors and experts.

In planning his audit, the auditor will consider factors such as complexity of the audit, the environment in which the entity operates, his previous experience with the client and knowledge of the client’s business. The auditor may wish to discuss elements of his overall plan and certain audit procedures with the client to improve the efficiency of the audit and to coordinate audit procedures with work of the client’s personnel. The overall audit plan and the audit programme, however, remain the auditor’s responsibility.