AUDIT

Description
The objective of the Presentation is to explain on Audit.

AUDIT

? ? ?

An evaluation of a person, organization, system, process, project or product Ascertain the validity and reliability of information, and also provide an assessment of a system's internal control Types: 1. Financial 2. Process 3. Telecommunication 4. Scientific

? Appointment audit ? Attendance audit

? Payroll processing audit
? Resignation audit

Appointment of a Candidate

The HR & the Director ident the need for a new employe The job profile/ job descript discussed & framed.

START

Need for new employee identified

Job description/ job profile discussed & framed

Job description/ job profile intimated to the recruitment agency

X

The prospective candidates the job are either recomme by recruitment agency i.e. Lease India or by Cadbury I Ltd. There is an internal refe scheme too.

Human Resources/ Director

Y

Candidate selected?

yes

Employment terms discussed with HR & approved by Director

Appointment Letter approved by Director

P1

The recruitment process involves2-3 rounds of interv the first being with one line manager and second with Director. (Control P-3) The appointment letter is approved by the Director. (Control P-1)

P2

Acceptance letter forwarded.

Appointment letter issued to individual

One copy of the appointme letter is filed with the admin & one copy is sent to the outsourced agency for Pay (Control P-2)

A

There is personnel file chec which is filled by the HR in to ensure that all the docum are received from the new j Refer Appendix 1.

Recruitment Agency

X

Job description/ job profile received from the Company

Recommendation of employee

Y

The new joinee may be give joining bonus or the notice period of the joinee's previo organisation may be paid b Company which is approve the time of appointment. Th notice pay is made on evide given of the amount to be p

Payroll Processing
P4

A

Administr ation Assistant

B

New joinees, Attendance & resignees details sent to outsourced agency

C

The appointment letter (for new joinees), attendance records, resignation letter (for resignees) along with all the employee's claims are sent to the Payroll agency by the 15th of the month. (Control P-4) The processing is done by the 20th of the month and sent to the Director for approval. If there are any major discrepancies in the amount then a reconciliation is prepared by the outsourced agency showing the reason of variation. The net payment report is sent to HR who validates the amount with the previous month's records to ensure no major discrepancies are observed. (Control P-12) The funds transfer letter is prepared by the outsourced agency which is forwarded to the authorised signatories for approval. Once approved the transfer letter with details of each employee's salary amount is sent to the bank for crediting. (Control P-18)
P 18

Payslip provided to employee

Payroll Processessing
Tally

Accounting of Payroll cost & disbursement

Outsourc ed Agency
no

Payroll report, reconciliation generated

Consolidated statement prepared

Sent to bank for salary credit

no HR

P 12

Validated by HR

Approval mail to HR

yes

Director no

P 13

Approved by Director?

yes

Approval by authorised signatories

The salary is credited in the employees account by the 25th of the month. All the employees are mailed their pay slips for their personal records.

Attendance of Employees

An attendance register is maintained by the Administration Assistant, who tracks the attendance & leave for each employee. On a daily basis, the attendance register is signed by the respecitve employee. When employees are travelling for business purpose, then the administration Assistant based on on the travel information marks the attendance for those employees. In some cases the location/ destination is mentioned. (Control P-8)

Employee

START

Employee in town?

yes

Physical entry in the register

no

P8

Administration Assistant

Administration Assistant makes an entry

Summary of attendance prepared in excel

The cut-off for payroll is 15th of each month. On 15th of each month, Administration Assistant prepares a summary of attendance records in excel. The summary is forwarded to Financial Analyst who validates it (through sanity check) and forwards it to the outsourced agency for payroll processing by th 16th or 17th of the month. (Control P-9)

P9

Financial Analyst

Sanity check of attendance register

The summary is sent to the payroll agency for processing

In case of leave, the leave is approved by one line up manager through mail and the same is forwarded to Administration Assistant for updation of attendance records. Leaves are calculated as per the leave policy. Leave details and balance leave for each of the employee is tracked by the outsourced agency.

B

Resignation of an employee

Each employee needs to submit his / her resignation to the company. The resignation letter is accepted by the Director (which would be either serving the full notice pay / recovery of notice pay. The notice period is 3 months or as stated in the appointment letter. In some case an employee leaves without serving the notice period then the amount is recovered from the full & final settlement. (Control P-16) The exit checklist is filled in order to ensure that all the assets and dues recoverable are returned at the time of resignation. The exit checklist is signed by the various departments involved. (Control P-14, P-17) Refer Appendix 2 The resignation letter along with the exit checklist is sent to the payroll agency for final settlement. (Control P-15)

P 14

Employee

START

Resignation letter submitted by the employee

Exit Checklist form filled

P 16

Director

Approval of Director

Exit Checklist approved by respective department

P 17

Approved Exit Checklist form forwarded to Administration Assistant

Administr ation Assistant

P 15

Relieving letter provided to employee

The resignation letter along with the exit checklist is sent to the payroll agency and the same is filed in the respective employee file

C

THANK YOU!



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