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Tuesday, 20 September 2011

What system of internal control over stores of the large manufacturing concern would be suggested

Following steps are considered the most important in case of internal control over store :

1. Maintenance Of Record :-
For the strong control over stores it is necessary that record of the goods in the store should be maintained properly. Quality and quantity of the goods should be recorded in detail.

2. Checking Of Record :-
There should be proper checking of such record. This record should be kept in those hand who do not handle the stores.

3. Continuous Stock Taking :-
Continuously independent stock taking by actual must be carried out. It should be done by any other person who is not store keeper. It will be very useful in detecting the fraud and errors.

4. Use Of Separate Bin :-
Store room should be arranged systematically and each item should be kept in separate bin. It will become very easy for the store keeper to find the particular item.

5. Quantity Fixation Limit :-
Each item of the store minimum and maximum quantity limit should be fixed by the management. This limit should be entered in Bin Cards. If the quantity of any item reduces then the fixed limit, store keeper should report to the purchase department.

6. Entrance Not Allowed :-
No any person should be allowed to enter in the stock room except the store keeper and his assistance.

7. Use Of Bin Cards :-
Bin Cards should be attached with each Bin. Store keeper should write to the issuance or receipt of item to the bin card. The record of the store room should consist of only a bin cards.

8. Issuance Without Requisition Not Allowed :-
Any item may not be issued by the store keeper upon verbal request. Without presenting the requisition duly signed by the incharge of the needed department no any material should be issued by the store keeper.

9. Entry In Store Cards :-
After entering the items on the bin card store keeper sends the store issue requisitions to the "Store Record Office". The office will enter the issues in dependently in the store cards. These would contain the record of items quantity and their price.

10. Return Of Any Item :-
Some times any item is not used and returned to store. It should be accompanied by "Store Resumed Notes" in duplicates. Its entry in the bin card and stores record cards will be just like the requisition entry.

11. Verification Of Items :-
Inspection department should make a surprised checking of the store time to time. Some items of the stores should be verified by actual count and these should be balanced by bin cards and stores cards.

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