Purpose: This is the testing worksheet for the respective control objective and activity / activities.
Site Audited
Audit Type
If Not a Standard Audit Type, Explain Purpose of Review
Review Stage
Cycle
Testing performed by
Date of test
Testing reviewed by
Date of review
Expenses
Control Objective
EX-020-010
Purchasing Approvals - All purchases are approved by management.
Risk Addressed: Inventory related purchases are not approved appropriately.
The Purchasing function procures inventory, supplies, and services to satisfy production requirements and to maintain the
facilities and equipment The purchasing function should not acquire goods or services for which a proper management approval
has not been obtained.
Guidance / Risk Addressed
Control Activity #
Control Activity
EX-020-010-030
Control Activity Description
SOX or OKC
Materials management has a process to review that customer's finished goods
demand is loaded into the ERP system (MPS - Master Production / Planning
Schedule) from forecasts or firm orders provided by the customer.
Activity
Scope
OKC
Process Owner (Contact Person @ Site for This Control Objective)
Process Owner Job Position
The test for EX-020-010-030 requires, through discuss with relevant materials management, reviewing the procedures / process of
converting customers forecast or orders into raw material purchasing requirement.
Prescribed Test(s)
Frequency (select closest value)
Sample Size (per sample size guideline / prescribed audit test)
Additional Samples Selected (based on testing exceptions)
Base Data For Sample Selection Provided By
Name & Title of Person Providing Base Data (If Not ARMS)
Date Range / Period(s) of Base Data Used For Sample
System That Sample Selection Data Was Obtained From
Company Number(s) - if applicable
Was The Prescribed Test Performed?
If The Prescribed Test Was Not Performed, Or Was Only Partially
Performed, Explain Why And What Was Tested Instead
Attributes
A
B
C
D
E
F
Detailed Test Procedures (Attributes)
There is a process in place to convert customers forecasts or orders into raw material purchasing requirement.
Sample Table (please add / delete rows as necessary, based on the frequency)
Material
Management
Process
Testing
Exception
Identified? (Y/N)
Attribute Testing Performed (use tickmarks)
Customer's
Finished Goods
Demand Process.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Other Notes / Additional Documentation of Work Performed or Process
Details / Significant changes to the process / system in use since
previous year audit (Only If Deemed Necessary)
Examples of Deficiencies / Other Documentation (attach samples of
deficiencies or other documents as deemed appropriate)
Control Effectiveness EX-020-010-030
(choose from drop-down list)
Control Deficiency Description EX-020-010-030
Comments
Control Objective
PDM-010-050
Guidance / Risk Addressed
The procurement process is not prop
metal that is not designed for the spec
Control Activity #
Control Activity
PDM-010-050-010
Process Owner (Contact Person @ Site for This Control Objective)
Process Owner Job Position
The test for PDM-010-050-010 requires
1. Discussion with Materials Managem
Prescribed Test(s)
2. Obtaining Nutrition and Scrap rate r
scrap rate.
3. Checking for situations when invent
of the process which causes scrap inc
Frequency (select closest value)
Sample Size (per sample size guideline / prescribed audit test)
Additional Samples Selected (based on testing exceptions)
Base Data For Sample Selection Provided By
Name & Title of Person Providing Base Data (If Not ARMS)
Date Range / Period(s) of Base Data Used For Sample
System That Sample Selection Data Was Obtained From
Company Number(s) - if applicable
Was The Prescribed Test Performed?
If The Prescribed Test Was Not Performed, Or Was Only Partially
Performed, Explain Why And What Was Tested Instead
Attributes
A
B
C
D
E
F
Are there any commodities shared bet
Scrap rate level's are reasonable and c
Item code change adjustments exist
Proper process of adjustment approva
Sample Table (please add / delete ro
Attribute Testing Performed (use tickmarks
Material Process
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Sample Table (please add / delete ro
Attribute Testing Performed (use tickmarks
#
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Other Notes / Additional Documentation of Work Performed or Process
Details / Significant changes to the process / system in use since previous
year audit (Only If Deemed Necessary)
Other Notes / Additional Documentation of Work Performed or Process
Details / Significant changes to the process / system in use since previous
year audit (Only If Deemed Necessary)
Examples of Deficiencies / Other Documentation (attach samples of
deficiencies or other documents as deemed appropriate)
Control Effectiveness
(choose from drop-down list)
Control Deficiency Description
Procurement and Production Process is setup the way to utilize materials the most effective way possible.
urement process is not properly setup, generating significant material losses. Especially in Mechanicals sites, regular use
at is not designed for the specific product to be produced can result in high scrap rates and significant material losses.
Control Activity Description
MAINLY FOR MECH SITES - Scrap rate for the material is at a reasonable level,
and the procurement process ensures that material is ordered according to
production requirements (i.e. size, amount and quantity).
SOX or OKC
OKC
for PDM-010-050-010 requires:
ssion with Materials Management process of ordering Commodities which are shared between programs. Discuss how efficien
ing Nutrition and Scrap rate reports for last 6 months and discussing with local management reasons for the actual rates ther
e.
ing for situations when inventory adjustments are made where item codes are changed to meet requirement of BOM, and ensu
ocess which causes scrap increase.
Detailed Test Procedures (Attributes)
any commodities shared between programs
e level's are reasonable and comparable across all products
e change adjustments exist
rocess of adjustment approvals and analysis is in place.
le Table (please add / delete rows as necessary, based on the frequency)
ng Performed (use tickmarks)
Testing
Exception
Identified? (Y/N)
Comments
le Table (please add / delete rows as necessary, based on the frequency)
ng Performed (use tickmarks)
D
Testing
Exception
Identified? (Y/N)
Comments
fective way possible.
chanicals sites, regular use of material such as sheet
ficant material losses.
Activity Scope
ograms. Discuss how efficiency is ensured.
sons for the actual rates there and process of limiting
equirement of BOM, and ensure this is not inefficiency
Comments
Comments
