Sr. No.

Area of review Methodology Observation Recommendation AMC

Response
A. Financial Control:
1 Vendor Payments:
a. Check that the designated vendor Review the empanelment process
empanelment process is being followed. followed for the vendors . Also
review the expenses to check
whether reimbursement is used as a
tool to circumvent the empanelment
procedures.

b. Check for existence of vendors whose Call or visit vendors to confirm

invoices are being claimed. their existence
c. Check the authenticity of the invoices. Call the vendors and try to get
independent rates
d. Checking and confirming if all cheque/DD
for vendors are handed over on time and Check whether bills are regularly
proper record is maintained for the same. raised by the vendors who provide
continuous service.
Check whether claim is raised
within reasonable time after receipt
of invoice.
Check whether cheques are handed
over in reasonable time to vendor
and record of the same is
maintained.
e. Check the price/rate of the material
purchase on test check basis, rate card of
local travel agency and distance of travel
for conveyance related claim.

f. Check the price/rate of the material

purchase on test check basis, rate card of
local travel agency and distance of travel
for conveyance related claim.

2 Others:
a. Physical check of premise to see if any old
invoices are pending

b. Consider the possibility of the auditor being

part of a scheduled event on an
unannounced basis
c. Match conveyance/staff welfare claims
with attendance records on test check basis.
 with attendance records on test check basis.

B. Administration:
a. Adherence to Admin Internal Controls at Verify whether the requisitions are
Investor Service Centres (ISC) with respect being raised by the staff at the ISC
to following expenses. for their stationery requirements
and whether the requisitions are
being approved by the BM.

b. 1.Branch Exp – Stationery

a. Whether the purchase requisition is
approved by the branch manager.
b. Whether purchase order is issued for the Verify whether the ISC is issuing
purchase of stationary. purchase orders for the purchase of
the stationery and whether the rates
quoted in the invoices are matching
with that in the PO.

c. Whether Distribution register is Verify whether the branch is

maintained in the branch which is in line maintaining a distribution register
with the MIS report prepared every month. for distribution of stationery and
whether the entries are matching
with the monthly MIS circulated to
the Business Head and the Regional
Admin Manager.

d. Whether MIS report is prepared and Verify the MIS report prepared by
circulated to Business Head and Regional the branch for the Stationery
Admin Manager. showing the Opening, Inward /
Outward & Closing balance at the
end of every month.

2.Courier charges
a. Whether the outward register is Verify the entries in the outward
maintained for all the courier agencies register and ensured that the entries
servicing the branch. in the outward register are in line
with the monthly bill submitted by
the courier agency.

b. Whether all the transactions are entered Verify whether the EOD counts for
in the outward register. To ensure the same each date has been mentioned in the
is in line with the Monthly bill. outward register and whether the
branch Manager has countersigned
the outward register at the EOD.

c. EOD count of documents mentioned and

signed by the Branch Manager.
 3. Consumption on Paper Reams Verify a reconciliation sheet for the
paper rims used vs no. of copies
printed on printers/fax/copier
machines.

c. Fixed asset
i. Physical verification of fixed assets at Verify the fixed assets held at the
ISC based on the list of assets provided by ISC with the list provided by the
the ISC. HO.
ii. To ensure that the all the assets which Verify whether all the assets which
are required to be tagged as per the HO are required to be tagged with the
policy has been tagged with the asset asset identification number as per
identification numbers. the AMC policy has been tagged or
not.

iii. Whether appropriate tagging is provided Whether the rented assets are
to identify the Hired assets lying at the ISC. tagged as “Rented Asset”

d. CCTV
Check whether branch is covered by CCTV CCTV is working and covering
relevant areas
Recording is available.

C. Client Services

a. Process of receipt, time stamping and

processing at ISC and forwarding the same Whether checklist for receipt of
to registrar FT as well as NFT application is
in place.
Whether time stamping
machines are adequate and time
set on all the machine matches
with server time.
Whether time stamping register is
maintained to confirm there are no
blank applications stamped.
Whether process and controls is
in place for applications received
through fax.
b. Review of End of Day reconciliation of all Review of EOD recon of all
transactions received and forwarded to the transactions received and forwarded
registrar / processed at ISC to the registrar/processed at ISC
 transactions received and forwarded to the transactions received and forwarded
registrar / processed at ISC to the registrar/processed at ISC

Review of recon of applications

above Rs. 2 lakhs and liquid
applications with cheques deposited
for sample of two days per month
Review of records maintained for
receipt of NCTs and sent to CAMS

Review of applications received vs.

applications processed at AMC and
application-9ui8ns sent to CAMS
for processing
c. Display of statutory disclosures at the ISC Whether NAV and all addendums
are displayed on notice board.
Whether adequate SID, SAI and
KIM are available at branch
d. Review of controls over monitoring and Discuss with the FO staff, the
identification of third party instruments for process followed if third party
investment instrument is received and also
review on real time basis, the
process followed while accepting
application.

e. Dispatch of account statements / dividend Review the process followed for

warrants / redemption warrants/ brokerage dispatch of account statement,
warrants dividend warrants, redemption
warrant and brokerage warrants.

f. Handling of dishonored cheques /

undelivered dividend and redemption
warrants / unclaimed dividend and
redemption requests / direct credit rejects

g. Recording of customer interactions and Review the process followed for

adherence to policies with respect to the communication received on Cliser
same as laid down in the CSPM ID/Phone as well as captured in
CIMS.

h. Adherence of the ISC to the service level Whether confirmation of

agreement (SLA) with AMC and policy compliance with SLA is provided
memos laid down in the CSPM by branch to HO on monthly basis.
Verify whether policy memos are
separately filed

i. Interactions with investor have been Review whether investor

correctly classified between queries / interactions are correctly classified
grievances / complaints as queries/grievances/complaints
D Sales
a. Check whether there are Acceptance letter Verify the Inter Office Memos
of distributors on record for any additional (IOM) and approvals obtained for
brokerage additional brokerage and
acceptance letters from brokers for
the same

b. Cross- verification of conveyance with call Compare the call register

register maintained with the conveyance
claims
c. Whether marketing material stored at Check the printing dates of the
branch is current and usable marketing leaflets / documents and
compared the same with latest
addendums to check whether these
are current and usable.
d. Whether register of Distribution of Check whether Register is
Promotional Marketing Material is maintained with respect to Date and
maintained wef 01 Dec 2016 Quantity received from HO,
Date,Quantity and Name of
Distributor to whom it is
distributed.

E Human Resources and Local Laws

a. Whether local licenses like Shop and Verify the Shop and Establishment
Commercial Establishment Registration License and validity of the same
b. etc. have been taken and current.
Display of Statutory Notices such as Check whether all these are
Holiday List, working hours, payment of displayed
minimum wages, principal officer of the
company, local language display boards
etc.

c. Verification of local vendors, compliance

with labour laws
Sr. No. Area of review Methodology Observation Recommendation AMC
Response
A. Financial Control:
1 Vendor Payments:
a. Check that the designated vendor Review the empanelment process
empanelment process is being followed. followed for the vendors . Also
review the expenses to check
whether reimbursement is used as a
tool to circumvent the empanelment
procedures.

b. Check for existence of vendors whose Call or visit vendors to confirm

invoices are being claimed. their existence
c. Check the authenticity of the invoices. Call the vendors and try to get
independent rates
d. Checking and confirming if all cheque/DD
for vendors are handed over on time and Check whether bills are regularly
proper record is maintained for the same. raised by the vendors who provide
continuous service.
Check whether claim is raised
within reasonable time after receipt
of invoice.
Check whether cheques are handed
over in reasonable time to vendor
and record of the same is
maintained.

e. Check the price/rate of the material

purchase on test check basis, rate card of
local travel agency and distance of travel
for conveyance related claim.

3 Others:
a. Physical check of premise to see if any old
invoices are pending

b. Consider the possibility of the auditor being

part of a scheduled event on an
unannounced basis
c. Match conveyance/staff welfare claims
with attendance records on test check basis.

Sr. No. Area of review Methodology Observation Recommendation AMC

Response
B. Administration:
a. Adherence to Admin Internal Controls at Verify whether the requisitions are
Investor Service Centres (ISC) with respect being raised by the staff at the ISC
to following expenses. for their stationery requirements
and whether the requisitions are
being approved by the BM.

b. 1.Branch Exp – Stationery

a. Whether the purchase requisition is
approved by the branch manager.
b. Whether purchase order is issued for the Verify whether the ISC is issuing
purchase of stationary. purchase orders for the purchase of
the stationery and whether the rates
quoted in the invoices are matching
with that in the PO.

c. Whether Distribution register is Verify whether the branch is

maintained in the branch which is in line maintaining a distribution register
with the MIS report prepared every month. for distribution of stationery and
whether the entries are matching
with the monthly MIS circulated to
the Business Head and the Regional
Admin Manager.

d. Whether MIS report is prepared and Verify the MIS report prepared by
circulated to Business Head and Regional the branch for the Stationery
Admin Manager. showing the Opening, Inward /
Outward & Closing balance at the
end of every month.

2.Courier charges
a. Whether the outward register is Verify the entries in the outward
maintained for all the courier agencies register and ensured that the entries
servicing the branch. in the outward register are in line
with the monthly bill submitted by
the courier agency.

b. Whether all the transactions are entered Verify whether the EOD counts for
in the outward register. To ensure the same each date has been mentioned in the
is in line with the Monthly bill. outward register and whether the
branch Manager has countersigned
the outward register at the EOD.

c. EOD count of documents mentioned and

signed by the Branch Manager.

3. Consumption on Paper Reams Verify a reconciliation sheet for the

paper rims used vs no. of copies
printed on printers/fax/copier
machines.

c. Fixed asset
i. Physical verification of fixed assets at Verify the fixed assets held at the
ISC based on the list of assets provided by ISC with the list provided by the
the ISC. HO.
ii. To ensure that the all the assets which Verify whether all the assets which
are required to be tagged as per the HO are required to be tagged with the
policy has been tagged with the asset asset identification number as per
identification numbers. the AMC policy has been tagged or
not.

iii. Whether appropriate tagging is provided Whether the rented assets are tagged
to identify the Hired assets lying at the ISC. as “Rented Asset”

Sr. No. Area of review Methodology Observation Recommendation AMC

Response
C. Client Services

a. Process of receipt, time stamping and

processing at ISC and forwarding the same Whether checklist for receipt of
to registrar FT as well as NFT application is
in place.
Whether time stamping
machines are adequate and time
set on all the machine matches
with server time.
Whether time stamping register is
maintained to confirm there are no
blank applications stamped.
Whether process and controls is
in place for applications received
through fax.
b. Review of End of Day reconciliation of all Review of EOD recon of all
transactions received and forwarded to the transactions received and forwarded
registrar / processed at ISC to the registrar/processed at ISC

Review of recon of applications

above Rs. 2 lakhs and liquid
applications with cheques deposited
for sample of two days per month

Review of records maintained for

receipt of NCTs and sent to CAMS

Review of applications received vs.

applications processed at AMC and
application-9ui8ns sent to CAMS
for processing

c. Display of statutory disclosures at the ISC Whether NAV and all addendums
are displayed on notice board.
Whether adequate SID, SAI and
KIM are available at branch
d. Review of controls over monitoring and Discuss with the FO staff, the
identification of third party instruments for process followed if third party
investment instrument is received and also
review on real time basis, the
process followed while accepting
application.

e. Dispatch of account statements / dividend We reviewed the process followed

warrants / redemption warrants/ brokerage for dispatch of account statement,
warrants dividend warrants, redemption
warrant and brokerage warrants.

f. Handling of dishonored cheques /

undelivered dividend and redemption
warrants / unclaimed dividend and
redemption requests / direct credit rejects

g. Recording of customer interactions and Review the process followed for

adherence to policies with respect to the communication received on Cliser
same as laid down in the CSPM ID/Phone as well as captured in
CIMS.

h. Adherence of the ISC to the service level Whether confirmation of

agreement (SLA) with AMC and policy compliance with SLA is provided
memos laid down in the CSPM by branch to HO on monthly basis.
Verify whether policy memos are
separately filed

Sr. No. Area of review Methodology Observation Recommendation AMC

Response
D Sales
a. Check whether there are Acceptance letter Verify the Inter Office Memos
of distributors on record for any additional (IOM) and approvals obtained for
brokerage additional brokerage and
acceptance letters from brokers for
the same

b. Cross- verification of conveyance with call Compare the call register

register maintained with the conveyance
claims
c. Whether marketing material stored at Check the printing dates of the
branch is current and usable marketing leaflets / documents and
compared the same with latest
addendums to check whether these
are current and usable.

Sr. No. Area of review Methodology Observation Recommendation AMC

Response
E Human Resources and Local Laws
a. Whether local licenses like Shop and Verify the Shop and Establishment
Commercial Establishment Registration License and validity of the same
etc. have been taken and current.
b. Display of Statutory Notices such as Check whether all these are
Holiday List, working hours, payment of displayed
minimum wages, principal officer of the
company, local language display boards
etc.

c. Verification of local vendors, compliance

with labour laws