INTERNAL AUDITOR RETAIL TEXTILE GROUP

1. Job Purpose

Primary Objective:

Company branches, Head Office, warehouse, purchase, sales, inventory, accounts, HR, payroll :

- Financial loss
- Fraud & theft prevent/detect
- Stock shortage
- Cash leakage
- Billing irregularities
- Company policies £ •
- Internal controls
- Operational efficiency ®
- Management- independent audit report

£ • •. Internal audit fault finding department management- risk, control, efficiency objective assurance function £.

2. Main Job Responsibilities

A. Branch Audit showroom- regular audit .

•£:

- Daily sales
- Cash collection
- Card sales
- UPI sales
- Credit sales
- Sales return
- Discount
- Cancellation
- Exchange
- Complimentary bills
- Void bills
- Manual bills
- POS transactions
- Cash deposit
- Bank reconciliation
- Expenses
- Stock movement
- Staff attendance
- Staff discount
- Customer complaints
- Damage stock
- Transfer stock

3. Cash Audit Cash leakage retail business- risk £.

Auditor •£

Daily Cash

- Opening cash
- Cash sales
- Cash expenses
- Cash deposit
- Closing cash

System Cash vs Physical Cash match £. •£

- Cash shortage
- Cash excess
- Delayed deposit
- Personal use of company cash
- Unauthorized expenses
- Cash withdrawal
- Cash refund
- Fake refund
- Duplicate refund

4. Billing Audit Textile retail- • audit area.

Auditor •£

- Bill sale ?
- Cancelled bills £?
- Discount authorization £?
- Manual bill ?
- Price override ?
- Wrong barcode ?
- Duplicate bill £?
- Sales return genuine £?
- Exchange genuine £?
- Employee billing irregularity £?
- Customer payment ®» collect ?

Special Fraud Test: POS sales + physical stock movement + cash/card/UPI collection ®® cross-check £.

Auditor •£:

- Opening stock
- Purchase
- GRN
- Stock transfer
- Sales
- Sales return
- Purchase return
- Damage
- Missing stock
- Closing stock

Physical Stock

System stock

10,000 pieces

Physical stock

9,850 pieces

Difference

150 pieces shortage

£ ££.

5. Surprise Stock Audit audit- branch manager- ®» £.

Example:

®:

- 2 planned stock audits
- 1 surprise stock audit

. High-risk branches- frequency £.

Risk-based audit approach high-risk areas- audit coverage £ practice.

6. Purchase Audit

Purchase department- leakage £ • £.

Auditor •£

- Purchase requisition
- Purchase order
- Supplier quotation
- Purchase approval
- GRN
- Invoice
- Rate comparison
- Supplier selection
- Purchase return
- Credit note
- Freight
- Discount
- Scheme
- Supplier outstanding

® •£ Supplier rate vs market rate

Purchase rate vs previous purchase rate

Purchase quantity vs actual requirement

Supplier relationship / conflict of interest

7. Supplier Audit

Supplier ledger •£.

£:

Supplier invoice

5,00,000

GRN

4,50,000

Invoice

5,00,000

Difference

50,000

» investigate £.

:

- Duplicate invoice
- Duplicate payment
- Wrong bank account
- Unauthorized supplier
- Fake supplier
- Excess payment
- Credit notes not recorded •£.

10. Sales Audit branch-:

- Daily sales
- Monthly sales
- Category-wise sales
- Staff-wise sales
- Bill count
- Average bill value
- Conversion
- Discount %
- Return %
- Exchange %
- Gross margin

•£.

Example:

Branch A

Sales = 20 lakh

Gross Margin = 32%

Branch B

Sales = 22 lakh

Gross Margin = 24%

Sales £ margin leakage £.

Internal Auditor £ ££.

8. Discount Audit

Textile retail- discount sensitive £.

Auditor •£

- Who approved discount?
- Maximum discount limit?
- Staff discount?
- Festival discount?
- Manager discount?
- Unauthorized discount?
- Customer-specific discount?

Example

Company policy

Manager maximum 10%

Actual





18%

Audit Observation

9. Sales Return & Exchange Audit fraud risk area £.

•£:

- Original bill £?
- Product same £?
- Barcode match £?
- Return reason genuine £?
- Refund £ approved ?
- Cash refund £?
- Bank/UPI refund £?
- Product £ stock- ?

10. HR & Payroll Audit Internal Auditor HR- day-to-day work £.

- control •£.

Audit Areas

- Employee master
- New joining
- Resignation
- Attendance
- Overtime
- Salary
- Incentive
- Advance
- Loan
- Leave
- Full & final settlement
- Duplicate employee
- Ghost employee
- Unauthorized salary changes

Special Test HR Master Attendance Payroll Bank Payment match £.

11. Expense Audit

Branch expenses •£

- Electricity
- Rent
- Maintenance
- Transport
- Travel
- Tea/food
- Stationery
- Repairs
- Advertisement
- Petty cash

Auditor £: Expense genuine £?

Company policy ®£?

Approval £?

Supporting document £?

Duplicate claim £?

12. Bank & Reconciliation Audit

•£:

- Bank reconciliation
- Cash deposit
- UPI settlement
- Card settlement
- Payment gateway
- Outstanding cheques
- Unidentified credits
- Unidentified debits

Important

POS sales

10,00,000

Bank/Card/UPI settlement

9,75,000

Difference

25,000

Investigation.

13. Fraud & Theft Investigation

Internal Auditor- fraud detection capability •®£.

Possible fraud

- No-bill sales
- Cash theft
- Stock theft
- Fake returns
- Fake discounts
- Fake expenses
- Supplier fraud
- Payroll fraud
- Purchase manipulation
- Barcode manipulation
- Unauthorized transfers
- Customer payment diversion

Fraud suspicion auditor evidence-based investigation £; allegation ® report . 14. CCTV Audit

Retail textile business- CCTV useful £.

Auditor sample basis-:

CCTV + POS + Cash + Stock cross-check .

£:

CCTV

Customer product .

POS

Bill .

Stock

Product shortage.

significant audit finding .

15. IT / POS Audit

•£:

- POS user access
- Manager login
- Billing staff login
- Password sharing
- Price override
- Discount override
- Bill cancellation
- Return authorization
- User deletion
- System modification
- Backdated entries
- Audit trail

16. Branch Manager Audit Branch Manager- control effectiveness •£.

Manager KPIs

- Sales
- Gross margin
- Stock loss
- Cash shortage
- Discount
- Returns
- Customer complaints
- Staff productivity
- Attendance
- Expense control

Manager target achieves stock loss £ audit observation £. 17. Head Office Audit

HO departments

Purchase

- Purchase controls
- Supplier controls
- Rate
- Approval

Inventory

- Stock transfer
- GRN
- Warehouse
- Stock reconciliation

Accounts

- Ledger
- Payments
- Bank
- Receivables
- Payables

HR

- Payroll
- Attendance
- Employee master

Marketing

- Campaign expenses
- Vendor bills
- Agency payments

IT

- System access
- POS
- ERP controls

18. Monthly Audit Pattern

Week 1

Branch Operations Audit

- Cash
- Billing
- Sales
- Discounts
- Returns

Week 2

Inventory Audit

- Physical stock
- Transfers
- Shortage
- Damage
- Warehouse

Week 3

Purchase + Supplier Audit

- PO
- GRN
- Invoice
- Rate
- Supplier ledger

Week 4 Accounts + HR + Compliance Audit

- Bank
- Expenses
- Payroll
- Statutory
- Reconciliation

19. Monthly Reporting Internal Auditor Monthly Internal Audit Report £.

Report structure

1.



Executive Summary

2. Branch-wise Findings

3. Financial Loss

4. Stock Shortage

5. Cash Variance

6. Billing Irregularities

7. Purchase Issues

8. Fraud Risk

9. Control Weakness

10. Corrective Action

11. Responsible Person

12. Deadline

13. Previous Finding Status

20. Audit Finding Classification findings- level .

Critical

- Theft
- Major fraud
- Significant financial loss
- Intentional manipulation

Immediate MD escalation

High

- Major stock shortage
- Repeated cash shortage
- Unauthorized discount
- Serious control failure

7 days action

Medium

- Documentation failure
- Approval gap
- Process deviation

1530 days ¢ Low

- Minor procedural issue
- Small documentation error

Routine correction 21. Corrective Action Tracking

Audit report .

Auditor maintain £

FindingBranchAmountResponsibleDue DateStatusStock shortageBranch A35,000Manager7 daysOpenDiscount issueBranch B12,000Sales Manager10 daysClosedCash shortageBranch C8,500Cashier3 daysOpenOpen audit points MD- monthly report £.

Qualification

Minimum Qualification

B. Com / M. Com preferred.

Strongly Preferred

- CA Inter
- CMA Inter
- CIA
- ACCA
- CISA IT audit exposure £
- Diploma/Certification in Internal Audit

Professional certification •® internal audit methodology, risk assessment, evidence, controls competency •®£. IIA India Internal Audit Practitioner framework- engagement planning, risk assessment, evidence, workpapers competencies •® .

Experience

Internal Auditor

35 years experience

Senior Internal Auditor

58 years

Internal Audit Manager

812 years

Head of Internal Audit

1015+ years

Retail/textile experience strong advantage £.

Technical Skills

Auditor- skills •® £:

Accounting

- Journal
- Ledger
- Trial Balance
- P&L;
- Balance Sheet
- Bank Reconciliation

Audit

- Internal control
- Risk assessment
- Audit sampling
- Audit evidence
- Fraud detection
- Audit reporting

Retail

- POS
- Billing
- Stock
- GRN
- Stock transfer
- Sales return
- Exchange
- Discount
- Cash management

Excel

Advanced Excel strongly recommended

£:

- Pivot Table
- XLOOKUP / VLOOKUP
- SUMIFS
- COUNTIFS
- IF
- Conditional formatting
- Duplicate detection
- Data reconciliation
- Basic dashboards

Personal Qualities Internal Auditor- • qualities:

1. Integrity
2. Confidentiality
3. Independence
4. Attention to detail
5. Analytical thinking
6. Fraud detection ability
7. Communication skill
8. Courage to report
9. Problem solving
10. Skilled scepticism

Auditor branch manager- senior staff- observation » . IIA Code of Ethics objective, ethical conduct- • . Internal Auditor- £ Powers role effective £® authority ® £.

Auditor-:

- branches authority
- Records • authority
- POS data access
- Stock verification
- Cash verification
- CCTV review
- ERP reports access
- Supplier records review
- Employee records review need-to-know basis
- Surprise audit
- Management- clarification authority
- Audit evidence collects authority

££.

Auditor »

•®£.

Internal Auditor

Cashier

Purchase approve

Bills enter

Supplier select

Branch manager- operational work audit finding close

£ auditor control • £; control owner .

Performance KPI of Internal Auditor

Internal Auditor- mistakes £? £ ® evaluate .

Recommended KPI

- Audit plan completion 100%
- Branch audit coverage
- Stock audit coverage
- Cash audit coverage
- High-risk issue detection
- Repeat finding reduction
- Audit report turnaround time
- Corrective action closure %
- Fraud prevention/detection
- Control improvement
- Financial leakage identified/recovered
- Management satisfaction

📌 Internal Auditor (Idukki)
🏢 Atlas Affordable Fashion Destination
📍 Idukki