6 Key Steps For Preparing The Logistics Audit Report
August 3 , 2021
The core aim of a logistics audit report is to thoroughly examine the current logistics and transportation operations of an organisation. It maintains a flow of efficiency in the systems and processes and provides strict measures and guidelines for supply chain, inventory, and freight management.
It begins with collecting the quantitative and qualitative measurement of data and analysing the information. Logistics audit allows inter-departments to collaborate and communicate with each other in assessing and gathering raw data and converting it into a meaningful form. It helps connect all departments, including warehousing, purchasing, production, transportation, customer service, IT, and trade compliance. These departments offer their deep insight into the quality of logistics material and bring positive auditing.
With all the accumulated data and information, the organisation creates a physical flow map to identify any in-efficiency and non-productivity in workflow operations. It allows the audit team to offer valuable suggestions for improving the system of tasks. The assembled data is used to save the time and cost of an organisation to find backup recovery and analyse the information for cost estimation.
Here are a few key steps to prepare for a logistics audit report:
Planning An Audit
Planning is an initial step in audit preparation. It allows internal and statutory auditors to think of a plan and put it into practise. Planning involves creating a fundamental framework to perform and execute the audit. Auditors should know what areas of the supply chain need more focus and attention. They should customise their audit towards fulfilling the specific needs of organisation.
Gathering The Data
After making a plan, the next important thing is finding audit evidence. It is a time-consuming process that involves digging into minute information, such as verifying petty cash vouchers and other cash receipts.
Auditors have to check every single entry in the accounting and bookkeeping records. It makes them exhausted to mess up with piles of paperwork documents. With the advent of technology, auditors have a lot of ease and convenience to use instant professional reports. Using these apps are ideal for auditors to automate their tasks and execute an audit report in a few minutes.
Examining The Information
It is a necessary step to evaluate the gathered data. Auditors scrutinise the data and pinpoint the weaknesses and discrepancies in the financial audit of logistics and supply chain management. It involves inventory valuation, stock replenishment, order fulfilment, and shipping transportation delivery.
Auditors create a clear and transparent audit report of all these areas and other departments. They make sure to track the blunders in financial statements and balance sheets to show the positive status of the organisation. It displays the profit and loss position of a public limited company and shares dividends with the stakeholders and customers.
Preparing The Final Report
Reporting is a final step that holds critical importance for the company. It shows a complete detail of the assets, liabilities, capital, income, and revenue of an organisation at the end of the financial year. Unlike the regular year, which begins with January and ends in December, the financial year starts on 1st June and finishes on 31st July of another year. It keeps track of all financial records of transactions that happened in the preceding year.
Due to using App store reports, auditors have the ease of creating any kinds of reports in minutes. It gives them a sense of authenticity in preparing and submitting their accounts before the board of directors to analyse a company’s actual condition.
Highlighting The Financial Issues
The job of auditors is to identify the problems in any business and resolve them quickly. They thoroughly assess the data and highlight the financial discrepancies in warehouse inventory, logistics, shipping, and goods delivery. They verify the records and inspect all vouchers and receipts to find the evidence.
Examining The Audit Data
Auditors use their intelligence and skills to examine all the records. They maintain the balance sheets and income statements to determine a company’s correct position in the competitive market. Making the Future Decisions for the Company
Auditors must propose and suggest an audit report to the company. It includes pinpointing errors and advising for improvement in the financial numbers. The company has a right to accept or reject an audit proposal. The company can make its profitable future decisions based on this factual data and information.
Hence, those mentioned above are practical steps to prepare the logistics audit report in a nutshell. It covers all the positive and negative aspects of an organisation and provides a logical assessment of the company to highlight its strong and weak points.
The era of traditional auditing is over now, and it is now an age of digital apps to make your task easier and execute an audit in less time and effort. Businesses are utilising these apps for efficiently carrying out their audit tasks and making various forms of reports for clients.
Also Read: 6 Ingenious Ways You Can Do Audit Planning
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