Para 2.4.8 — MSO

Audit of stores records 2.4.8 Audit should ascertain whether:

(i) all stores were examined, on receipt and while accepting delivery, to determine their condition and to ensure that they were of the approved quality, make and specifications and the quantities conformed to those agreed upon;

(ii) the stores have been taken on stock and entered in the Goods Received Sheets/Bin Cards;

(iii) the previous stock balances have been correctly worked out, carried forward and authenticated by a responsible officer;

(iv) bin cards have been maintained chronologically based on receipts and issues; and

(v) Price Stores Ledgers containing the value account of stores have been maintained. 2.4.9 Where priced accounts are maintained, Audit will see that:

(i) stores are priced with reasonable accuracy and the rates initially fixed are reviewed periodically, correlated with market prices and revised where necessary;

(ii) the value accounts tally with the accounts of works and departments connected with stores transactions, their total also tallies with the amount outstanding in the general accounts;

(iii) the numerical balances of stock materials are reconciliable with the total of the value balances in the accounts at the rates applicable to different classes of stores; and

(iv) steps have been taken for the adjustment of profit or loss due to revaluation, stock verification or other causes not indicative of any serious disregard of rules.