Provex Consult | Pre-Audit Function Management

PORTFOLIO OF SERVICES

HOME| PORFOLIO OF SERVICES |PRE-AUDIT FUNCTION MANAGEMENT

Strategic Hotel Management Healthcare Internal Audit Factory Audits Distribution/Wholesale/ Retail Risk Consulting Construction Project Audit Car Rental Management Audit Cost Control Audits for Restaurants Other Industries – Education, Mining Services Etc

CFO Services Tax and Compliance Management Internal Audit Function Value Assessment Internal Audit Department formation and Establishment process Management. Risk Combat Strategy-Industry based Risk Register for Governance

POLICY AND PROCEDURE DEVELOPMENT

ERP Software Evaluations and Vendor Assessment

Technology Based Controls

Cash Flow Management Module Expenditure Management System- Tyre, Fuel, Labour etc. Customized ERP Core and Shell Version Scaffolding Monitoring System.

PRE AUDIT FUNCTION MANAGEMENT FIXED ASSET MANAGEMENT

Pre-Audit Function Management

PROVEX believes in preventive mechanisms rather than detective and corrective action plans for critical activities and decision-making processes. The function of Pre- Audit is a critical aspect of the control environment which provides advantages and benefits to the organization by way of Cost control, risk mitigation, effective and efficient decision making, fraud prevention, and efficient management.

PROVEX Partners and Consultants have over 40 years of expertise in the Pre- Audit Process and have established a proven mechanism and responsibility matrix for effective function execution and delivery to their clients.

Function Description of Pre-Audit Activity.

The Department shall pre−audit all claims against the Client in accordance with the Accounting Policy and Procedure Manual (Manual), including all communicated revisions made by the Client Management

The following types of claims, included in the Manual, are not subject to pre−audit by the Department:

Payments the Shareholders.

Claims involving court settlements with current and former employees.

Claims approved for payment by the Client to be paid from sources other than Client companies

Other items, whether or not within the Manual, as agreed to by the parties in writing and appended to this MOU.

The definition of ‘claims’ shall include all Purchase orders, Expense vouchers, Cheques, agreements and contracts or any other documents which the management deems should be routed through the Pre−audit department as far as it does not compromise the quality and attributes to be revealed by the department members for the effective functioning of the department.

The Department shall pre−audit all claims which are processed by the various companies under the Client including the sister concerns.

The Department shall establish a pre−audit function within the Department's internal control structure, as submitted to and approved by the Managing Director and the Executive Committee prior to execution of this MOU, and shall designate a pre−auditor(s) to be responsible for the pre−audit function conducted in accordance with this MOU.

The Department shall assign responsibility to the pre−auditor(s) to determine that all disbursements committed and paid (communicated thereof) is in compliance with the, regulations necessary for the activity pre−audited, and other laws, administrative regulations, and the Policy manual, and that the claims are accurate, authorized, adequately documented, the goods have been received or the services rendered, that all data is coded correctly, and provide the level of approval as required by the Clients formal and deemed policy and procedures.

The Department shall require the pre−auditor(s) to attend periodic training provided and scheduled by the individual companies and departments on the various activities entered into by them at relevant points of time as necessary to enable them to effectively conduct their duties of pre−audit.

The Department shall assign responsibility to the pre−auditor(s) to investigate, approve, and/or deny all claims presented for payment, or to return claims to the Department's financial/operational/accounts staff for modification or correction. The pre−auditor(s) shall have the duty, experience, and training to enforce compliance with statutes, administrative regulations, and the manual, and to require that adequate documentation is provided to support payment of the claims.

The Department shall be responsible to ensure that claims are appropriately prepared pursuant to the policies and procedures in practice across the Client.

The Department shall cooperate with Client company management during the post−audit or for activities resulting from the post−audit. The Department shall respond to all findings made in a post−audit on matters where pre−audit function was involved.

The Department shall notify the Client companies and Departments in writing of any personnel changes within two (2) working days that would affect the Oracle system ID management and access control processes. The Department shall require pre−auditors and/or authorized personnel to approve claims on the Client companies, and shall require pre−auditors and authorized signers to sign each claim prior to further processing.

A Department seal which shall be under the custody of the Department shall be affixed along with the signature denoting the approval of the claim by the Department.

Pre-Audit Process Flow

They shall report to the Finance Head of the Client, who shall be overseeing the function.
The flow of documents shall ideally be as follows:

Unit Managers : After Checks
Pre-audit review : Review
Finance Head : Approval
Owners/ Authorised signatories Returned to Unit Manager

This process would enable more cost-effectiveness by correcting weaknesses in the control framework during the initial stages of the transaction process.

This does not eliminate the need for post-implementation audits as there is no assurance that what was processed and committed was maintained or operated as intended, and that the original requirements continue to hold true.