Page 232 - MANUAL OF SOP

Verification

verification. Wherever necessary, ask that certain reports be
produced for the POI.
(c) As part of the introduction to the respondent’s accounting system
and request the IT person to demonstrate how data from a specific
sale flows through the system and have them generate reports that
can be linked to the financial statement. For cost verifications, team
members should do the same with electronic records of purchases
and input consumption. This procedure will give team members a
good idea of what is involved in retrieving the information that is
needed to match to response data.

(d) The verification agenda letter should state that the databases used
to generate the response should be made available at the time of
verification. In addition, wherever possible, the investigation team
should ask that the database used for sales listing should also be
loaded and that a programmer be available to run that database. If
necessary, team members should ask that certain programs be run.
This procedure will give a good idea of what is involved and how
long it will take.
Reconciliation of Quantity and Value of Sales

(xIv) The total quantity and value of sales is simply the sum of the quantity and
value of individual transactions in each of the respondent’s transaction
databases. Thus, verification of total quantity and value is accomplished by
typing selected individual sales transactions into the financial statement and
by testing the ledgers and worksheets.
(xIvi) The team should bear in mind that it is not always possible to tie sales
transactions directly into the financial report using records and ledgers
kept in the ordinary course of business. This situation occurs because
our definition of the product, POI and date of sale often do not coincide
with the company’s accounting procedure. Also, the sales figures from the
respondent’s accounting records may include other amounts (e.g., taxes,
fees for services reported elsewhere). Worksheets will be needed to bridge
the gap between accounting records and the sales data submitted by the
respondent.

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