The annual procurement of raw material by a company is 200 MT of steel and 100 MT of copper. The copper is used in winding for starter motors made by the company. The management gets the winding done by a third party. Th

AREA VERIFY Copper issued from store in Kg Check the amount of copper issued from store No. of starter motors issued Check the number of starter motors issued for winding. Entry in job work register Verify the entries in job work register for material unused. Amount of copper required by Bill of Material Note the requirement as per Bill of Material. No. of starter motors returned with winding. Verify with job work register and security register. Normal Loss in the process of winding Verify normal loss in the process of winding as per past trends Reconcile total weight of copper issued with number of starter motors. No. of starter motors X weight of copper per motor vs weight of copper issued. Return of Scrap Copper Verify the scrap (normal loss) of copper has been returned by job worker. The internal audit should verify the following: Report on variance of copper issued vs returned.