Stay at Home : A Charted Accountant

A Charted Accountant did a home audit during quarantine and Lockdown.

His report shocked him.

” I have realised our home & kitchen is the most misguided place”.

Observations:

1. There is no stock ledger maintained. Procurement is not in line with the provision factor. Purchase orders are placed verbally. Inventory maintenance is very poor,
2. There are no budgeting documents.
3. There is also no indexing of products.
4. No bin cards were displayed.
5. No Annual, Monthly or quarterly stock-taking has been carried out.
6. No Inspection has been carried out for years. Most of the spoons and plates are of wrong pattern and do not match with the original part number.
7. No Procedure for inventory valuation.
8. Weighing scale nonexisting.
9. No handing over/taking over files maintained.
10. No SOP and menu displayed.
11. Fire fighting equipment not held.
12. Sufficient reserves are not maintained.
13. The annual balance sheet and other financial statements have not been prepared since inception.
14. A lot of unaccounted cash was found in many boxes in the kitchen.
15.  We understand that many items are lent/borrowed to/from neighborhood families but no records have been maintained. Periodical balance confirmations were not made available for inspection
    1. .*Audit report for home.