This document provides guidance on auditing scrap sales. It outlines the audit objective is to prevent irregularities in scrap sales and ensure the company realizes true financial profit. Key documents to review include scrap sale policies, registers, production details, authorized personnel lists, and vendor contracts. The audit procedures involve understanding the scrap sale process, preparing an audit program, checking internal controls, analytical procedures, verifying scrap records, and ensuring proper vendor contract verification. The conclusion reiterates the importance of following these procedures to properly audit scrap sales.