- Review the internal control on junk materials, as regards its generations, storage and disposal and see whether it was properly followed at every stage.
- Ascertain whether the organisation is maintaining reasonable records for the sale and disposal of junk materials.
- Review the production and cost records for the determination of the extent of junk materials that may arise in a given period.
- Compare the income from the sale of junk materials with the corresponding figures of the preceding three years.
- Check the rates at which different types of junk materials have been sold and compare the same with the rates that prevailed in the preceding year.
- See that all junk materials sold have been billed and check the calculations on the invoices.
- Ensure that there exists a proper procedure to identify the junk material and good quality material is not mixed up with it.
- Make an overall assessment of the value of the realisation from the sale of junk materials as to its reasonableness.
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