Name

COSO Internal Control Framework (C5) Monitoring Control Activity - Supplying Spare Parts

Description

COSO - Integrated Internal Control Framework
COSO CONTROL COMPONENT: MONITORING CONTROL ACTIVITIES
COSO PRINCIPLE NO. 16 & 17
COSO CONTROL OBJECTIVE: Supplying Spare Parts
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL

C5. Control activities should be designed as an integral part of the organization, taking into consideration its objectives, the risks to their achievement, and the inter-relatedness of the control elements.

Carry out the monitoring activities on internal controls implemented in the organization as per listed below procedures and prepare an evaluation of internal controls and communicate the deficiencies identified during the evaluation of internal controls. you can prepare an Internal Audit report for communicating the internal control deficiencies identified.

Objective:

1) Ensure that the stocks of the spare parts are adequately and appropriately maintained.
2) Ensure that valuation and validation of the stock issues/movements are accurate and the spares used for warranty are appropriately determined and valued.
3) Ensure that the production and purchasing of spares are effective and in efficient manner. Costs in relation to the utilization of spare parts are appropriately recorded.
4) Ensure that valid prices are being charged through invoices to the customers.
5) Ensure that the persistent faults in relation to the components are properly determined and rectified/resolved.
6) Ensure that the utilization of the spare parts are for valid purpose.

Standard (Non-IT) Audit Program

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