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1. Retail Company 1
Surprise Visit at the Branch
AC22-1
Internal Audit Department
7 July 2022
Prepared by: Amir Yunus

2. Background
• The surprise visit was performed on 29-June-2022
• The cash in hand was USD 3,526.
• A cash float (petty cash) of USD 3K was assigned to the Branch.
• The average daily cash collection (01-Jan-2022 to 28-June-2022) was USD 4,000 with a maximum daily collection
of USD 10,096.
• The stock in hand at the Branch was USD 537K.
Prepared by: Amir Yunus

3. Major observations
1. Branch Safety & Security
The following matters were noted:
▪ X CCTV cameras installed at the Branch were not working.
▪ The CCTV footage at the Branch was retained for a maximum of X days, which is not as per the legal requirements to retain
for 90 days.
▪ Fire extinguishers installed at the Branch were not regularly inspected.
Management has already initiated a comprehensive HSE inspection from an external HSE Company. The results are
awaited.
2. Petty cash handling at the Branch
Prepared by: Amir Yunus

4. The objectives of the audit were to determine whether:
• The cash in hand matched with the books of accounts and collections were timely deposited in the bank account.
• Stock in hand matched with the system.
• Branch safety and security was adequate.
• Clearing accounts (cash, bank, stock) are reconciled on a timely basis.
• …..
Objectives & Scope
Risk Rating & Summary
The following is the summary of audit observations contained in this audit report.
Risk Rating
No. of
Observations
%
Critical - 0%
High 2 40%
Medium 2 40%
Low 1 20%
Total 5
Annexure A
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Prepared by: Amir Yunus

5. Annexure B
Sr. No. Title Rating Rec. No. 1 Rec. No. 2 Rec. No. 3 Rec. No. 4
1 Cash handling at the Branch Medium 1-22 2-22 3-22
2 Inventory management at the Branch Medium 9-22
3 Inadequate CCTV coverage High 12-22 13-22 14-22 17-22
4 Fire extinguishers not serviced High 15-22 16-22
5 Discrepancies in cheque/credit card clearing accounts Medium 5-22 6-22 7-22 8-22
Sr. No. Title Links
1 Cash handling at the Branch 1-22
2 Cash handling at the Branch 2-22
3 Cash handling at the Branch 3-22
4 Discrepancies in cheque/credit card clearing accounts 5-22
5 Discrepancies in cheque/credit card clearing accounts 6-22
6 Discrepancies in cheque/credit card clearing accounts 7-22
7 Discrepancies in cheque/credit card clearing accounts 8-22
8 Inventory management at the Branch 9-22
9 Inadequate CCTV coverage 12-22
10 Inadequate CCTV coverage 13-22
11 Inadequate CCTV coverage 14-22
12 Fire extinguishers not serviced 15-22
13 Fire extinguishers not serviced 16-22
14 Inadequate CCTV coverage 17-22
Links to recommendations
List of findings
Detailed audit findings are available at this Link
Ctrl + Click to access the links
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Provides links to
individual
recommendations
Link to the
recommendations
database
Prepared by: Amir Yunus