Audit Process

Introduction

The operations of the internal audit department are to determine compliance with policies and procedures. assess the quality of Internal Controls. Evaluate the quality of risk management. The scope of the Internal Audit role includes value for money review and ensuring objectives are achieved at the lowest cost as well as system review.

Scope of Operations

The scope of the department covers vetting, checking of expenses, sales transactions, review of departmental processes, and periodic stock taking for all locations where our stocks are kept.

Purpose

This manual provides an ample description of the system and processes required for the efficient and effective management of all Audit-related activities as carried out by the department.

Authority/Responsibility

The Internal Audit Team is responsible for ensuring total compliance with the requirements stated in this process manual in order to maintain consistent workflow within the department.

Departure from Procedure

Adherence to all procedures stated in this manual is obligatory for all members of staff of the department and as such, due authorization is obtained from the head of the department before deviating from these procedures.

Our Vision

Our vision is to be a global leader in distribution, empowering Africa with transformative technologies.

Our Mission

To ensure accessibility, affordability and useability of technology across Africa, empowering individuals and businesses, nurturing local innovations and steering a sustainable digital evolution.

TD Africa Quality Policy Statements

We are committed to empowering all our stakeholders with exceptional experiences in the technology ecosystem. At TD Africa we know that poor quality products can cost loss of market, time and credibility. To uphold our quality policy, we maintain zero tolerance for deficiencies. We understand the importance of prompt quote response, quality products and timely delivery

TD Africa Quality Objectives

To achieve Gross Profit Margin of 8% for FY24
Achieve 100% in customer satisfaction.

Departmental Quality Objective

To ensure that all transactions on sales and receipts are captured in the system as well as the accuracy, completeness, and correctness of posting.
To ensure that sales parameters (policy) are adhered to.
To ensure value for money when vetting payables
Ensure all departments are in compliance with the set of controls put in place.

Infrastructure /Work Environment

Infrastructures/tools used within the department are monitored by the head of department.

Inter- relationship with other departments

S/N	DEPT	NATURE AND DESCRIPTION OF RELATIONSHIPS	PROCESS INPUTS	PROCESS OUTPUTS
1	HR/Admin	Staff recruitments	Requisition from HOD	Competent Personnel
		Staff appraisal	Appraisal form from HOD	Staff promotion/Termination
		Redeployment	Requisition from HOD	Redeployment
		Staff Welfare	Condition of service	Motivation
		Disciplinary Action	Query/Warning	Suspension/demotion /Termination
2	Other departments	· Cross-checking of the accuracy of posting transactions · Checking of credit sales policy before processing credit sales transactions · Compares customer LPO to sales orders raised for alignment.	· Check for mistakes /errors	· accuracy, correctness, and completeness of records

AUDIT TRAIL

The objective of audit trail is to ensure the accuracy of the use of General Ledger. It is done by generating Audit trail for the period under review by;

Identify General Ledger option on Dynamics.
Click audit trail
Set date and export to excel
When the data is exported to excel, two classes of documents are retrieved from Accounts department. One is Credit note documents while the other is Payable documents.
Examples of credit note documents are rebates posting and discount allowed effected in Partners’ accounts.
Audit verifies that all HC accruals sent from Audit Team are affected, Rebate Team must have given instructions to post the rebate value, and all discounts allowed are confirmed to have been sent by Audit Team before they were effected in the customers’ account.
Also, all mail trails or source documents instructing Audit to effect postings must be reviewed to confirm that the person giving the instruction has the right. The accuracy of the posting is also verified. These include amount, posting to the correct account, authorization, etc.

PAYABLE DOCUMENT CHECKS: These are checks for authorization for payments and checks surrounding the accuracy of postings.

Audit sight the source documents used in disbursement to verify all postings were done with appropriate approvals and also that the right figure was paid and posted, the right currencies were posted, the right expense heads were charged, and if they were rightly debited and/or credited.

NB: When errors are spotted, the Audit staff communicates to the Finance Staff who made the postings through mail or a written document and the Finance staff replies after the necessary correction has been done with the journal that indicates the correction as confirmation.

REVIEW OF REVERSAL OF INVOICE

This is done to check the accuracy of the transaction being reversed. The Audit Staff will; –

Identify account receivables on Dynamics
Click on invoice journal, then click the reversal code.
Sort by date reversal was done.
Identify the request and approval and check that the SOP was reversed according to request and the approval is sighted.
Confirm if the SOP to be reversed is also to be reinvoiced and follow up on the reinvoicing.

NB: When any error upon reversal is noted, the error is flagged to the individuals who carried out the reversals and ensure regularization is done.

Reversal process:

The reversal request is initiated by the Sales Staff who sends a request for approval to reverse, the reason for the reversal, and SOP number for reversal. Where the reversal is to be reinvoiced, the SOP number for reinvoiced is stated.
The Warehouse and the Outbound Team will confirm the reversal, this is to ensure that the physical products are back to the store.
Audit staff reviews the request and sends recommendations for reversal to the approving Authority.
The approving will instruct one of the Audit Team in charge of the reversal.
The person to reverse the transaction will notify the Team on mail trail once done.
- DOA REVERSAL PROCESS

These are products that are discovered to contain a material defect after receipt of shipment of the products.

Stage 1. Detection & Reporting

Once a purchased Item is detected to be DOA.

The partner must notify the Sales rep/manager via mail, call, or text stating the part number/IMEI number.
Sales rep/manager will forward the Mail, Text, or Call to the Sales operation in charge of DOA, who will follow the below process:

Request for the physical Item (device), and a duly signed-off “Return inward form” from the partner. The form contains the following information:

- The name of partner
- Part number/IMEI of the Item with full descriptions, specifications, and SOP number
- Quantity to be returned.
- Date received.
- Branch / Location
- Signature of the Sales operations & Name (full Name)
- Signature of the Partner or representative & Name (full Name)
- A duplicated copy will be given to the Partner as a reference.

Check for physical damage(s) on the device before logging the claim on the OEM portal. In case of physical damage(s) this should be rejected immediately as the warranty does not cover damaged DOA.
Check if the Accessories are complete and Intact in the case of smart Phone (i.e., the accessories have not been tampered with )
Check If the product is still under warranty. (i.e., log it on the OEM portal to ascertain this ) if it is, commence the process for the release

Stage 2 Process (Getting Approval to Replace/Swap )

Sales operation in charge of DOA will request approval from the B.U head (with the claim reference acceptance from OEM) for store to release the said product (via Mail using the same mail trail of request and confirmation of DOA) with Audit & Store Team in copy.
After BU HEAD approval, Store personnel and sales operation staff will sign out the said product using the Return inward form, countersigning by store personnel
In the case of the exchange of close substitute items, this will be indicated on the Return inward document.
Sales operation staff hand over the DOA to store personnel for safekeeping, while the new product is handed over to sales operations staff
Store keeps the DOA item(s) till the period of shipping i.e., for smart Phone while the Feature phone will be sold as scrap to TD plus after 6 months

Stage 3 Process (Replacing/Swapping Stage)

1) Replace the DOA product using Return outward with the following information (replacement takes place after 72 hours of returning the defective product).

The name of partner

- Part number/IMEI of the Item with full descriptions and specifications properly referenced.
- Quantity
- Date released.
- Branch / Location
- Signature of the Sales operations & Name (Full Name)
- Signature of the Partner or representative & Name (Full Name)
- A duplicate copy will be given to the partner as a reference

Replaced unit is raised on dynamics IFO OEM.
Audit the adherence to the DOA process and approve for invoicing.
Store Team invoice the SOP.

Rebate Process

For every DOA replaced, OEM issues a credit Note IFO TD Africa.
TDREBATE captures the value of the invoiced products to follow up on the credit note.

Branch Warehouse

DOA item replaced in the branch is sent to Gbagada for return to OEM. This is done weekly through any available truck coming to Lagos

Return outward is raised stating the part numbers and quantity and duly signed off by sales operation and warehouse staff
The Gbagada warehouse will take custody of the DOA for safekeeping until the product is shipped.

The above is for Nokia, but the others like HP, PSG , Lenovo, etc. the below applied

Steps to follow once there is a return from the partner on a defective product.

The product will be taken to the Service Center for confirmation of the status of the product.
After confirmation from a Service center, the Procurement Team will log a claim on the issue with OEM.
Upon logging of the claim, OEM will issue a claim reference acceptance.
Claim reference acceptance generated by the Procurement Team from OEM should be shared with the Rebate Team.
On the Rebate Team getting the claim reference, provision should be made for the product using 90 days credit.
Once rebate provision has been made, the reversal process

FRONT-END REBATE CONFIRMATION FOR MAINSTREAM (HPS, IPG and PSG) ITEMS

Identify account receivables on dynamics.
Under advanced notes, click on rebate set up.
Export the rebates uploaded on Dynamics to excel.
The Rebate unit uploads all rebates into Dynamics on a monthly period with the approved quantities and unit support as communicated by the OEM in the documents (OPG).
Once inputted in the system, the Sales Operation and Business Analyst or anyone raising an SOP can apply a rebate (if any) on the transaction.
This will be vetted and reconfirmed by the Auditors per transaction (before invoicing).
Also, all rebates are confirmed by the Rebate Team (Part Number, value, and quantity) on the mail trail per transaction.
At the end of the month the Audit Team will pull the rebate set up for the month on Dynamics, and compare it with confirmation of the Rebate Team per transaction with OPG emphasizing quantity, value & part number. This is done to ensure the correctness of the rebate captured and also to avoid over-claiming or under-claiming of the expected rebate.

REBATES UPLOAD ON DYNAMICS

All rebates expected/units will be automatically loaded into the system monthly (beginning of the month).
All rebatedocuments shared in the course of the month have to be uploaded before utilization (Billed/Invoiced/SOP raised, SOP Draft) by the BU Head, AM, Sales operation, Business analyst, and Auditors.
Failure to load the rebateinto the system nullifies selling any transaction below the approved sell price except on an exceptional approval case.

EXPECTED FRONT END REBATE CONFIRMATION FOR MOBILE AND CE PRODUCTS

This is done to capture the expected rebate for mobile and CE products for the month.

Logging into dynamics and search for released products in Product Information Management
Request for the captured rebate sheet from the Rebate department and the promo bulletin guiding the rebate captured.
Confirm each item on the rebate sheet on the released products column on Dynamics to ensure that the quantity captured on the sheet is equal to the quantity released on Dynamics.
All Observations are flagged to the Rebate Team for regularization.

FLOAT

The objective of this is to confirm the float to be given to each branch as a function of the percentage of turnover achieved for the month by the branch.

The request for the float comes from the Account department to the Audit department
Two Excel (Branch Performance for the Month & FY budget for Float) will accompany the request for the float by the Account Team.
Confirm the Bank and cash balances of the branches (Confirming on Dynamics may not be accurate because Petty cash posting may be ongoing at the point of the request).
Recommend calculated float for approval to the approving authority based on branch performance and the Estimated value that has always been given to each branch.

STOCK TRANSFER JOURNAL CONFIRMATION

This is done to reconcile physical goods moved to the branches with stock transfers on the system. After the loading of stock has been done, the Store staff will bring the delivery note/waybill document containing the items loaded, part number, quantities, and branch to where the goods are being transferred to.

Delivery to branches–

The Store Team will raise a Journal for the stock movement and send it to Audit department. The Audit department searches for the journal number on Dynamics and compares the journal raised on Dynamics with the delivery note /airway bill booklet to verify that items are accurate before posting is done. After the posting of the journal, they export the items to excel and send it to the branch where the goods are to be delivered to notify the branch of the goods expected that are in transit.

Service Centers-

These are stock transfers between branch and retail stores. When there is a stock request from the retail centers, the stock is approved for movement by the Retail store administrator who approves for stocks to be transferred to the requesting branch. However, where stock is not available in the warehouse, the center makes provisions to get the stock from another service center that has the stock. The request will then state that the stock will be a store-to-store transfer and then the store administrator approves and then posting is done.

Return Inwards

If there is a return from the branches, they will come with a return inward sheet stating all the items returned, the condition, quantity and part number. Upon arrival to the branch the goods were sent to, they will issue a return inwards sheet, with all the items sent and create a journal on Dynamics and the store person will bring it to the Audit department to post on Dynamics.

Movement of items from TDL TO TDUK

The below process is the agreed-upon on the TD UK transaction.

The sales team will send mail to the store for the movement of stock stating the item and quantity to be moved for the transaction (with SOP for the transaction raised and stated on the mail).
The store will raise the journal and send it to MIS to input cost and send it to Audit for review
Audit review the journal raised by the store and compare with the SOP stated to ensure the item raised on the journal aligned with SOP and recommend to MIS for posting.
MIS posts the journal.

Posting of Stock on Dynamics

Identify Inventory Management on Dynamics
Click Journal entries, click items, and click Transfer.
Put the journal number in the journal column.
Compare stock raised on the journal with the stock moved on the delivery note for accuracy
Click validate and then click OK.
Click post and then click OK.

CONFIRMATION OF ORDERS LOGGED ON POWER BI

This is done to verify that all orders logged in the Operations department were done with Audit input and with a Sales order to back them up (for B2B and FOB orders). It is also done to ensure PO numbers are linked to the respective Sales order to relate the transaction with its respective costing and to identify its profitability. It is done by.

Click the Power BI link – app.powerbi.com.
Click All orders logged by item on the dashboard.
Filter by date and click on More Options (…)
Export data to excel

All data will be exported on an excel sheet. The Audit staff consequently verifies and confirms that all orders in the report were logged with Audit input and all orders logged without Audit input are flagged to the Operations department to clarify.

CALL OVER REPORT

This is done to review previous day transactions to ascertain correctness or otherwise in the profitability of all invoices done and that all transactions/products invoiced at a loss were done with an approval or a rebate to cushion the effect of the loss. It is done by.

Click the link to access the Call over report which is routed on the cloud – https://td-prod.operations.dynamics.com/?mi=SysTableBrowser&prt&limitednav=true&TableName=custinvoicetransexpanded&cmp=TDL
Click Options in the dashboard and a drop box will open, click the advanced filter or Sort.
Fill in parameters viz date, products and click OK
Export report to excel and create a profit column on the exported sheet.
Deduct the selling price from the cost of goods sold to arrive at a profit, which will be shown in the created profit column.
Also create a margin column and divide the calculated profit by the selling price to arrive at a percentage margin.
Review all margins that are negative/lower than approved margins for that product, extremely high margins for correctness and accuracy as well as a just reason why they were treated that way.
To verify the margins, copy the invoice ID on the sheet, click on account receivables on dynamics, go to invoices, and click invoice journals which will show the SOP used in invoicing the transaction, the name of the partner, the voucher, and the currency. Open the transaction to verify what led to the outrageous margin/low margin/negative margin. If there was an approval to invoice at that margin, the observation is ended however, if there was no approval or rebate, the Sales Team that treated it is alerted so as to regularize.

CONFIRMATION OF SALES ORDER

This is done to confirm the accuracy of products sold and released during a period. Sales Orders can be either Credit or Cash/POA confirmation.

Cash Transactions process:

An SOP is raised by the Sales Operations Team.
Payment Confirmation from account, payment posted and the rate at which it was posted must be confirmed, and the mail trail of the confirmation attached to the workflow.
Then SOP hit the Audit department for review.
If all parameters are confirmed okay by the Audit Team, it will be approved and the SOP will hit the warehouse for Invoicing.

Audit Review:

Ensure all parameters are filled. E.g. warehouse, mode of payment, the correct price is used, a correct entity is selected.
Ensure that all the necessary documents are attached.
Ensure the payment is sighted in the respective bank confirmed by the Accountant
Ensure the payment receipt and the invoice for the transaction agree.
In case the transaction is a POA transaction, the Audit Staff ensures that the right approvals are sighted (Approval from the Management & Partner). However, if there is an overdue on the account, exceptional approval by the management will be required for the Audit to be treated.
Ensure the part number on the P.O agrees with what was raised on the SOP
In case of any error in pricing, part numbers or if any discrepancies in the payment receipts is sighted, a change is requested for necessary correction. If there is no error, Audit Team will approve for the Warehouse Team to Invoice.

Credit Transactions process:

An SOP is raised by the Sales Operation Team.
Sales Operation must attach the following Documents:
The transaction approval.
The account confirmation on the status of the Partner.
Rebate confirmation and also it must be posted or uploaded on D365 (If applicable).
Partner’s Purchase Order (PO).
Partner’s confirmation on the transaction (where PO is not available, especially for Mobile transactions).
After that, the SOP hits the Audit department.
Audit review and approval (where all parameters is confirmed okay) and the SOP is released to the Warehouse for invoicing.

The necessary checks are;

Ensure all parameters are filled. E.g. warehouse, mode of payment, the correct price is used, correct entity is selected.
Ensure necessary documents are attached e.g. P.O, confirmations of PDC and any mail written approval.
Ensure the Account department states the exposure and overdue on the account of the partner that will advise the Auditor for the necessary approvals needed for the transactions to be treated.
Ensure the PDC and the invoice to be invoiced agree.
Ensure the following are stated on the Partners P.O – Mode of payment, the P.O must be duly signed by the partner and due to the nature of our business, most of the P.O are denominated in USD for exchange rate fluctuation hedging reasons and must be in favour of TD Africa.
Check the partners credit limit to ensure the partner do not exceed his limit any point in time.

If the partner is exceeding credit limit approval is required from the assigned authority.

Ensure the part number on the P.O agree with what was raised on the SOP.
Ensuring the right approvals are sighted before allowing it to be treated.
Where there are no errors/other exceptions, Audit Team approves for the Warehouse Team to invoice

Validity of Purchase Order:

The partner’s PO must be on the company letterhead paper.
The quantity of items to be purchased must be stated with the unit price.
The PO must be signed and stamped.
The terms of payment must be stated (i.e. credit days, mode of payment and payment at TD prevailing exchange rate must be stated).
The PO must have a reference number or date.

Back-to-Back, Credit Transaction (B2B) process:

The procurement Team releases an SOP used to log the order on the system when the product arrives (Except where it is a partial shipment, an SOP will be raised by the Sales Operations Team for invoicing of the partial shipment).
The SOP will pass through the credit process.

The necessary checks are.

Ensure all parameters are filled. E.g. warehouse, mode of payment, the correct price is used, correct entity is picked etc.
Ensure necessary document are attached e.g. P.O, confirmations of PDC
Ensure the Account department states the exposure and overdue on the account of the partner that will advise the Auditor on the necessary approvals needed for the transactions to fly.
Ensure the receipt and the invoice agrees.

Ensure the following are stated on the Partners P.O e.g. mode of payment, the P.O must be duly signed by the Partner and due to the nature of our business, most of the P.O are denominated in USD for exchange rate fluctuation hedging reasons and must be in Favour of TD Africa.

Check the credit list for the partners credit limit and credit days to ensure the partner does not exceed his limit at any point in time.
Ensure the part number on the P.O agrees with what was raised on the SOP
Ensuring the right Approvals are sighted before allowing it to be treated.
Ensure what the Procurement Team logged agrees with what we are invoicing.
Ensure the profitability (Margin) on the transactions is up to the threshold for the entity in question. (margin varies across entity)
Ensure the landing is factored into the cost, after getting the landing from M.A Team
Where there are no error/exceptions, Audit Team approves for store Team to invoice.

Back-to-Back FOB Transaction:

Same as back-to-back process except that landing is not considered as the partner bears the cost of shipping or landing for B2B FOB.

3.0 Logging of Order Process

Back-to-Back /FOB / STOCK:

SOP is raised by Sales Operation Team.
SOP goes to the Procurement Team to create PO on the system.
The SOP then comes to Audit Dept.
After SOP review by Audit Dept, it is approved.
SOP goes back to Operation Team who then logs order with OEM.
When Order arrives, SOP is then approved by Operation Team.
The SOP then comes back to Audit Dept for final review before approval.
Finally, SOP goes to the Warehouse Team for invoicing.

The necessary checks are;

Check the profitability of the order to log (i.e. Check the quote from OEM and the PO from the customer)
The accuracy of the Purchase order to SOP raised.
Check for the mode of payment on the Partner PO.
Check whether the order is FOB or B2B.
Check for the approval for the order to log.
Finally, pass it to the Procurement Team to Log.

B2B License Logging Process:

SOP is raised by the Sales Operation Team.
SOP comes to the Audit Dept for review.
SOP then goes to the Procurement Team creates PO and also logs the license with OEM.
SOP is approved by Operation Team when a license is ready.
The SOP then comes back to Audit Dept for final review before approval.
Finally, SOP goes to Warehouse Team for invoicing.

Exceptional Cases on Cash, POA, Credit, B2B & Logging transactions.

CASH

When Partner has overdue on the account (BU Head approves if the overdue is within 30 days).
When Selling below the approved price (BU Head approves).
When Selling price below cost price or at cost (Note losses are not acceptable except it becomes necessary to sell out old stocks and may also be driven by OEM support at times. However, this must be approved by CE/CMD).

CREDIT

Partner not on the approved credit list (The approval comes from CE/CMD).
Overdue on the partner account that is more than 30 days (CE/CMD Approves).
Selling below approved prices. (Note losses are not acceptable except it becomes necessary to sell out old stocks and may also be driven by OEM support at times. However, this must be approved by CE/CMD).

B2B

Transaction below the threshold margin (BU Head approves).
Partner exceeding credit limit not more than 25% (BU Head approves otherwise CE/CMD approves).
Cheque on Delivery (BU Head approves).
NO PDC waiver (CMD/CE approves).
NO PO for credit transaction (NB; PO is a contractual document, CE/CMD Approves).
Approval for Manual release (BU Head approves).

Supper APP transaction:

The partners raised the transaction and made the payment on the APP with the respective Account with TD Dynamics
SOP automatic generation with a mail notification to the party involved (TD STAFF)
Audit review of the SOP and instruct the warehouse to invoice and release
Warehouse Invoiced and Notified partners for either pick up or delivery.
After Pick or delivery the transaction is closed

Pricing on the Supper APP

New price for SKU(s) will be shared by the product manager to the Audit team for review.
The audit team will review the new prices based on approval from Mgt or based on product margin.
Prices for SKU(s) will be reviewed based on pricing shared by the MA team.
Review prices will be shared will the Data team to upload on the Super App.

LOGGING OF ORDER

Partner not on credit list and Nonpayment of 100% (CE/CMD Approval is required)
Nonpayment of 20% minimum down payment before logging (CE/CMD approval is required).
Where Payment would be paid at the prevailing exchange rate not stated on the PO (CE/CMD approves).

VAT AND WHT CONFIRMATION

This is done to ensure that the statutory VAT and WHT percentages are deducted for tax purposes. It is done by;

The request will come from the Accounts Team to Audit department showing an attachment indicating turnover for the period under review as well as the VAT element and also the Cost of sales.
Audit verifies the claim on Dynamics by clicking sales and marketing, the sales statistics
Click customer analysis by invoice and click records in background
Click filter and fill all parameters showing date, invoice and clicking OK.
Sales analysis by invoice will open, then the report is exported to excel.
Sales total amount, Sales tax, and total value of Sales tax is verified and the VAT element is calculated.
The Sales tax value is divided with the current percentage rate of VAT to confirm accuracy.

BANK CHECKS/REVIEW OF BANK RECONCILIATION

This is done to verify that the amount posted on the customer’s account on Dynamics as sighted in the bank is accurate with the bank inflow/outflow on Dynamics. It is done by; –

Generate posting done by the accountant for the period by clicking Cash and Bank transactions, then clicking Bank transactions
Select the bank in which the statement is to be generated.
Select date and export to excel.
Generate necessary Bank statements from the respective bank.
Reconcile all postings in the system with postings in the bank.
Posting not sighted on Dynamics but in the bank and postings in the bank not sighted on Dynamics are flagged to the Account staff who reconciles the bank and reports accordingly.

MONTHLY STOCK RECONCILIATIONS

This is done to ensure the physical stock in all warehouses aligns with the stock available on the system. It is done by.

Requesting the Stock report from all branches at the end of each month from the Warehouse Manager of the branch (NB… the stock report must have been verified by the Finance representative in the branch).
The Audit Staff generates the stock report for the month by clicking Inventory Management, Physical Inventory report and click inventory aging.
Set parameters including date, warehouse, item number and click ok and generate report.
Compare the generated report and warehouse report for any variances.
Where variances are noted, the audit staff will flag to Warehouse Team with HOD Audit.
Where there is a faulty/damaged stock, the store staff will flag with Audit person and the audit staff will flag to HOD Audit.

OPEN ORDERS CONFIRMATION

It is the policy of the organization that there should not be any open orders in the system at the end of each day except SOPs are raised for orders to be logged therefore it is mandatory for all Auditors to generate the open order report every COB to flag all open SOPs and seek clarification on the reason the SOPs are left opened at the end of the day. It is done by;

Click All Sales Order, click Options, Click Advanced filter/Sort
Fill parameters which include dimension, cost center, status (Open), order type (Sales Order) and click OK
Open orders at COB will come up and then it is exported to excel.
The exported sheet is sent to the concerned salesperson to give reasons for the open orders.
PETTY CASH REVIEW

This is done to review the expense incurred and to verify what the expense was incurred for.

The necessary checks are;

Download the Petty Cash Posting using the below steps:
Click General Ledger on Dynamics, click Charts of Account, Click Main Account and search for Branch Petty cash to be reviewed and click search.
On Account statement, set Statement by dimensions and export to excel.
After downloading of petty cash statement on D365, vouch the postings with amount captured in petty cash booklet.
Verified the signatory on the petty cash booklet.
Confirm the purpose of the expenditure if it is reasonable and necessary.
Ensure the appropriate third-party document are provided e.g. ensure that receipts are attached where necessary.

PAS REVIEW

PAS rebate is paid on two conditions:

Partners must meet at least 80% of threshold target.
Partner’s must be clean account on the last day of the month i.e. settlement of all due debt on the last day of the month.

Checks:

Instruction will come from Credit Control after the approval from the assigned authority.
Credit control share list of Partners that met their target for each month in a quarter.
Revenue is downloaded on D365 to confirm the Monthly target for the qualified Partners as stated on the Credit control sheet (i.e. Partners that met the 2 conditions stated above)
Rebate is calculated at 0.5% on either target or achievement.
5% will be calculated on target for 100% achievement and above.
5% will be calculated on achievement between the threshold target of 80% to 99%.

· We have the account’s confirmation on the below partners’ clean status on the last day of the month.

Audit dept also confirms the Account dept claim on dynamics that Partners are not overdue in their respective accounts at the end of each month.
If all criteria are met, the Audit Team recommends approval from the assigned Authority.

HANDLING CHARGES CONFIRMATION

Handling charges are service charges for deals provided to the company. It is verified by.

Confirm approval for the handling charges and request for the SOP of the give rise to the handling charges and confirm if payment has been fully made on the transaction.
Identify invoice number, exchange rate, date of invoice, due date, payment voucher of the transaction, date of payment of the invoice, and invoice value of the transaction.
Populate the handling charges sheet with the above details.
Calculate if there was any overdue before payment was made and calculate the cost of funds.
Identify the total costing of the products including its landing cost and calculate profitability before and after the handling charge.
Recommend for approval.

RISK ASSESSMENT

This involves identifying areas of high risk in the processes and procedures of the organization. The department carries out interdepartmental system audits to identify high-risk areas and show the threat, impact, and profitability of the materialization of the risk. The department also does periodic stock counts in retail stores to verify physical stocks in the stores to reduce the risk of stock mismanagement.

Audit department also anticipates assigning staff for departmental review who would visit each department for a particular period to familiarize and analyze their operations, understand their processes, and check for compliances as it relates to the duties of each staff in that department.

MANAGEMENT ACCOUNT (MA) CHECKS

This is done to confirm the accuracy of transactions with OEM as well as stock placing and orders with OEM. It is done by;

Identify General Ledger on Dynamics and click on Inquiries and Reports and click Audit trail.
On the description, type Purchase Order, select date and export to excel.
Using the created ID column, copy and search in Audit trail on Dynamics. Then click voucher transactions.
Click original document and copy the number of the document number in the system and search on the SOA shared by MA and confirm the value in the system invoice by the MA Team if they agree with the shared SOA by the Team.
Where differences are noted in the SOA and system invoices, Audit will flag and send it to the MA Team for necessary action.

VERIFICATION OF PAYROLL

This is done to ensure that Payroll prepared by the HR/ADMIN Team is accurate. It is done by.

Receipt of payroll from the HR Team.
Payroll of the previous month is compared with the current month which should be the same other than a recruit or update/upgrade where the salary structure and offer letter of the salary structure is confirmed. Also, another source of disagreement is usually exit staff cases.
Ensure the offer letter has approval from the authority i.e. cE with HR in copy.
Check the deductions, welfare, and payee that are in line with the grade and note that changes in deductions will always be accompanied by a memo sent by HR.
Identify Payroll management on Dynamics, Click Payroll Overview and fill all parameters viz payroll period, report, payroll cycle (1) and payroll cycle (2), and click OK.
For the security portion, change parameters to security and change payroll cycle to security and export to excel.
Review exported document with document shared by HR Team and compare previous month values with current month values.
On the reconciliation sheet, state reasons for differences in previous and current period payroll values, collate a review of both security and payroll, indicate how much is payable to statutory bodies on payroll and security, indicate how much is payable to pension and IRS and any other statutory deduction and the relevant account details.

NB: Employees contribute Pension up to 8% of Basic, Housing and Transport Allowance while Employer contributes up to 10% of same.

Check the Salary template which shows a comparison between salaries of 3 months prior showing the percentage increase or decrease.
Upon Audit confirmation, the payroll will be sent back to HR for reconciliation and it is sent back to Audit who sends approve approval authority and it is forwarded to the Accounts department for funding upon approval of payroll accordingly.
Basic salary is computed as thus (Basic salary+Special security)/12 multiplied by 0.62
House allowance is computed as thus (Basic salary +Special security)/12 multiplied by 0.28
Transport allowance is computed as thus (Basic salary +Special security)/12 multiplied by 0.10
FY additional pay, medical, leave ,13^th month and lunch allowance are as seen in the salary structure divided by 12

The above is for the calculation of the total remuneration. For payment follow the following steps;

Gratuity, if any, is computed as Basic salary multiplied by the total number of years. You will add the amount for extra days and months if any to the total gratuity.
Basic salary in lieu – Full monthly basic salary will be added if the staff has been confirmed. If the staff has not been confirmed 2 weeks basic salary will be added. This can only happen if the staff was disengaged from work.
Salary will be computed using the figures above but medical will be deducted from the total figure if the staff has been confirmed but if the staff has not been confirmed, medical will be deducted from the final figure.
A medical refund will be computed if the staff has not been paid before or did not utilise for HMO.

For Deductions from the payment.

Basic salary in lieu -For confirmed staff that did not give notice, a full month’s basic salary will be deducted from the pay-out and if the staff is not confirmed, 2 weeks basic salary will be deducted.
Every other expense if any will be deducted accordingly.
Process for management approval.

AGENT BILL/CLEARING BILL

This involves verifying amount to be paid to agents based on goods delivered and cleared on behalf of the company. It involves –

CLEARING BILL

Receive the estimated clearing bill shared by Procurement Teams.
This estimated clearing bill will be used to confirm if there is an increase or decrease in the actual bill shared by the agent.
Copy the Estimated bill and input the actual value into Audit payment template.

The necessary checks are;

Verify the name on the bill, the bill of lading, AWB, and arithmetical accuracy.
Audit checks against duplication/additions in the estimated bill.
Ensure all invoice reference codes of actual and estimate bills are captured into Audit payment template to confirm the bill has not been processed earlier.
Always compare the estimated figure with the actual figure and state reasons for variance.
The duty must be paid before all other clearing invoices (Transport, clearing, son port levy, shipping, terminal & SON charge) are paid.
Once all parameters have been confirmed okay, Audit will send for approval to the approving authority.

AGENT BILL

Requests will come from the Procurement department/MA to Audit department to process.
Identify analysis on the request to show a date of approval, partner’s name, shipment/orders, OEM invoice value, clearing cost in USD and GHC, clearing percentage, and markup.
Audit Team will check all the vendor’s references on the analysis with the control sheet in the Audit department to eliminate duplication of vendor references earlier.
Audit will search on dynamics using the PO reference to get the PO number, confirm the receipt of the product in the system, and then the value.
Capture the receipted product on the system.
Check if the SOP relating to the product has been invoiced.

NB: The policy says all the SOPs relating to the PO reference must be invoiced before recommending for payment.

Check if the order is a partial shipment or not and verify the OEM invoice value that they agree with the system PO value excluding the shipping value indicated on the OEM invoice.
Compare the OEM invoice shared with the PO number on Dynamics to ensure it agrees with the analysis sheet sent by Procurement.
Confirm the exchange rate used in the conversion is not higher than the system rate.
Confirm the profitability of the transaction putting the value for the agent in consideration.

NB: The transaction must not be at a loss after payment to the agent.

Confirm the percentage used by the agent for the agent for the payment.
Calculate the value to pay the agent according to invoice and to ensure deductions are applied on any short landed or damaged products.
Recommend for approval.

FX DELTA PROVISION

When there is a change in exchange rate, it will be communicated by the MA Team, from the communication the MIS Team will do recalculation & adjustment of closing inventory balance on Dynamics.

MA Team raise journal for the current FX rate (effect on the rate on inventory).
MA Team will apply the percentage change on Dynamics, send the export from Dynamics to Audit to review and post accordingly on Dynamics.

Audit Duty on Dynamics:

Click on Inventory Management on Dynamics
Click on Periodic Task
Click on Closing & Adjustment (Page layout will display).
Type closing on the Type column (Page display).
Click on the latest closing balance on the Page.
Click on Adjustment, pick on-hand (Dialogue page will display).
Click on select (You can filter to exclude some BU that has a concession on rate).
Click OK (Page layout display).
Under adjustment on the display, click on percent (Percentage adjustment page will display)
Input the Percentage change (CR-PR/PR*100).
Click OK (another page display), export the page and compare with the export shared by the MA Team.
Before posting, open another Dynamics, click on inventory Management, click on set up, click on posting (Page layout display), click on inventory, click on inventory expenditure loss (change the main account to 122019” FX DELTA PROVISION”) click on inventory expenditure profit (Change the Main account to 122019” FX DELTA PROVISION” Then save.
Then you go to the previous Dynamics you are working with and you click post and click ok.
After posting, change the FX DELTA PROVISION (122019) account immediately to 400025(Miscellaneous clearing charges).
Notify the MA Team that the review and the posting has been done via Mail.

VETTING PAYABLES

MEDICAL REFUND –

This normally comes from HR department to Audit. The refund is the unused portion of the medical allowance due to the employee.

Audit Review:

Confirm the existence of staff by comparing the names on the medical refund list to the names on the most recent payroll.
Compare the names on the previous HMO subscription to the names on the medical refund list to confirm their plans. Also, request the HMO list to confirm the plan for individual staff
Confirm the level of each staff to determine their medical amount e.g. Executive to downward is N30,000 and from Assistant Manager kindly refer to salary structure.
Perform arithmetical accuracy to determine how much will be refunded to staff and staff that will refund TD. Get clarification from HR on how this amount will be refunded to TD.
Recalculate to confirm the figures.
Confirm if the request has not been processed before.
Once done, a minute on the document from HR to get approval from the assigned Authority

REFUND TO PARTNER –

This could be because of the non-availability of the product, the item does not meet the partner’s specification, the customer prefers to pay in naira, etc.

Audit Review:

Letter from the partner on the partner’s company letterhead requesting a refund with the bank details as well as the exact amount etc
Confirm if the request has been processed before.
CMD approval to process must be sighted via mail.
Account confirmation must be sighted with the company’s account status or account statement.
Audit will confirm the validity of the partner’s open order, and account status to check for overdue, and confirm the inflow in the bank statement. Also, confirm that the said amount has been received in or posted to the partner’s account.
Once the above has been verified okay, recommend for approval to assigned Authority for approval.

REFUND TO STAFF –

This could arise from the excess amount spent on either road expenses, travelling allowance etc.

Checks:

For a refund of this nature, ensure there are supporting documents backing the request.

The affected staff will write a mail seeking refund with supporting documents. This will be sent to HR, and if HR is satisfied, it will be sent to Audit for final vetting. Audit check the validity of the receipts, and check if the amount is within what was specified in the company’s policy (for travelling allowance). If it is above what is specified on the company’s policy e.g. hotel bill, exceptional approval will be gotten by the requestor. If the amount is less than 50K, the head of the account will approve.

Confirm if the request has been processed before
Recalculate the amount before sending for approval

FINAL ENTITLEMENT TO EXITED STAFF:

This normally comes from HR to audit. This will be processed using salary structure.

Checks:

Confirm if this request has been processed before
Staff clearance must be sighted.
Ensure you sight the letter of resignation of the staff to confirm the date of resignation.
Check the staff level and the date of employment, this will enable you to compute the gratuity, if any. Gratuity is calculated for staff that has spent 5 years and above.
The date of employment and date of resignation will enable you to confirm the total number of years the staff has used.

OTHER MONTHLY BILLS-

AIRTEL BILL

This normally comes from HR. Compare the list in the current bill with the previous bill.
If there is any discrepancy discovered during the comparison, check the credit limit of the affected line and if not sure send it to HR to verify.
Every excess should be deducted from the bill. Perform arithmetical accuracy.
Be sure this bill has not been processed before.
Once done with the necessary checks, process for approval for payment thereafter.

STAFF RECHARGE CARD

This normally comes from HR.
Compare the previous bill with the current bill. Confirm the existence of the staff listed.
Confirm their entitlement and process for approval.

FUEL AND DIESEL FOR BRANCH VEHICLES AND GENERATORS

Get the previous document and compare it with the current bill.
Ensure the current approved price of diesel and fuel is used for the invoice.

FUEL CARD RECHARGEABLE FOR GBAGADA. – Same as above

ALL INSURANCE PREMIUM

This also comes from HR to Audit with necessary documents like debit notes, excel analysis for the computation, and
Check if it has been processed before.
Request for the demand notice from the insurance company.
Perform arithmetical accuracy.
Ensure the items insured are for TD

DHL DOCUMENTATION CHARGES: –

This request normally comes to Audit from the Management Account unit.

Get the previous document and compare it with the current bill to check for duplication
Get the excel copy and DHL invoice from MA.
Tick the invoice against the excel. Look out for the type of airline, DHL airway bill number, TD invoice reference, DHL invoice number, chargeable weight, gross weight and the rate.

The rate for each airline differs and should be provided. Confirm the actual rate from the Operations department.

Excel is kept for Confidence Cargo and other Agents will be sent.

Use that to confirm the weight and there are some FOB transactions that the cost

will be shared by TD and the Agent or Partner.
If FOB order exists, send the portion to be paid by the Agent to Accounts to do the needful.
Recalculate the details on the excel using the rate stated above.
Recommend for approval.

REPAIRS, SERVICING AND RENEWALS: –

This always comes for HR department to Audit. with the budget figure stated.

For Repairs – At least two quotes must be shared by HR. If it is only one quote that was shared. The reason should be stated on the request. Then negotiate the price with the vendor to get a very competitive price. Once satisfied, send to assign authority for approval.

For Servicing –Confirm the last time the servicing was done and the kilometre the vehicle has covered so far. Then negotiate with the vendor to get the best price.

Renewals of Vehicle licence/permit etc –Request for the expired copy of the licence or permit. You can confirm the price from the previous copy and confirm the validity of the expired document

PURCHASES OF ITEMS/EQUIPMENT – We require at least two quotes from vendors. However, if they cannot provide two quotes. It will be written on the document. Negotiate price and ensure the best price is gotten from the vendor. Once satisfied, process it for approval.

PROMO: –There are different types of promo. Promo ranges from internal sales to external sales promo and for different business units.

Steps:

Approval to process must be sighted.
Check for the promo mechanism from the promo flyer or from the marketing Team.
Once you understand the mechanics, run your report on dynamics making sure it is within the promo period.
Calculate the reward or incentives for qualifiers.
Check for account status, particularly the overdue status of qualifiers. Only a qualifier without overdue will earn the reward.
Also, check for profitability.
Recommend for approval.

TDPLUS OUT OF WARRANTY AND IN WARRANTY CUSTOM DUTY:–

or Out of warranty part.
Check for entity head approval.
Compare the selling price with the cost price to ascertain profitability.
Perform arithmetical accuracy.
Once satisfied, minute on the document for CE approval
For In warranty part;

Perform the same operation as above. But confirm from the accountant if the OEM has paid for the previous in warranty part treated.

ZINOX OUT OF WARRANTY:

Check for entity head approval.
Compare the selling price with the cost price to ascertain profitability.
Request for the receipt to be sure that customer has paid.
Perform arithmetical accuracy.
Once satisfied, minute on the document for CE for approval

OEM EVENTS:

Kindly follow the steps below.

Request from Marketing department or Entity head to CMD for authorization.
Ask if Rebate team has captured the provision, if yes, confirm via email
Confirm that Accounts have posted the rebate provision.
If there is any branding of pen, jotter, bag etc request for two different quotes.
If they cannot provide two quotes, they should state the reason on the document or via email.
Negotiate with the vendor to get best price
Recalculate to be sure of accuracy.
Once done, process for approval.

TD Credit Sales Policy

Credit sales are treated only on management approval based on approved credit limit
Management issues guidelines on credit sales officially referred to as credit parameters
Credit sales are made to only customers on credit parameter; however, exceptions to this are approve by the CMD and the CE.

TD Debt Collection Policy

The Credit Team usually send reminders mails to Partners for update on their debt falling due.
Account Managers are obligated to follow up on the Partners to ensure their accounts are settled as they fall due to avoid carrying aged debt.
Management issues guidelines on credit sales officially referred to as credit parameters
Credit sales are made to only customers on credit parameter; however, exceptions to this are approve by the CMD and the CE.

Audit Interface with Sales

Confirm LPO received from customers.
Check LPO against sales order created in the system to ascertain completeness.
Confirm Part numbers and Product descriptions.
State Sales order number on the LPO as the case may be.
Check Prices on Sales Order for correctness and completeness.
Check profitability of the transaction by comparing selling price against the cost price.
Approve correct SOP.

ANALYSIS OF OPERATIONAL DATA/RECORDS

On weekly/monthly basis and at any other time required, the internal auditor prepares operational reports for the attention of the CE. Records of some activities carried out in the department are contained in Index of Quality Records and maintained in the department.

DEPARTMENTAL MEETING

Departmental meetings are held twice in a month and issues discussed at such meetings are documented in the minutes of meetings.

CORRECTIVE ACTION

The department makes enquiries into reported cases of non-conforming services or identified cases of nonconforming services with the aim of identifying their root cause or causes without delay. (if there is any)
Subsequently, corrections and corrective actions considered appropriate to the effects of the nonconformities encountered are proffered and implemented.
All corrections and corrective actions implemented are evaluated and re-evaluated for adequacy.

PREVENTIVE ACTION

As a proactive measure taken to deal with probable nonconformities, the following procedures are observed by the department: (if there is any)

Records are checked for accuracy, completeness and correctness of posting.

Review of the trend history of nonconformities recorded in the department in times past to facilitate identification/ determination of potential nonconformities and their probable root-causes.
Evaluate the need for actions to prevent occurrence of nonconformities identified.
Determine and implement action(s) needed to prevent recurrence and occurrence of such nonconformities.

SUSTAINING IMPROVEMENT

To achieving continuous improvement in all operations within the department, the department ensures that:

Appraisals are conducted at intervals to help identify competency gaps.
Adequate training of personnel within the department is carried out whenever performance gaps are identified.
Existing methods of operation within the department as well as infrastructure are reviewed and inspected in order to help the department cope with new challenges.
Constructive suggestions received from members of staff during departmental review meetings are noted, reviewed for modification where necessary and implemented afterward.