Muhammad Umar Farooq

ECS is a well-known brand of ladies foot ware and hand bags in Pakistan that is famous for its comfortable, durable and stylish articles. It has network of 33 branches in 16 major cities and is expanding its network rapidly.

As an assistant manager Internal Audit department I provided extensive consulting services along with assurance services. My responsibilities included:
*Preparing annual audit plan covering both consulting and assurance services.
*Monitoring the execution of planned audit activities.
*Reporting material audit observations along with management action plan to audit committee.
*Consulting Services:
o Evaluating current practices of Retail, administration, IT and HR departments and recommended extensive controls.
o Facilitating meetings with management to discuss recommended controls, agreeing management to accept and implement them and document standard operating procedures (SOPs) in a standard format.
o Evaluating current work flows and recommending changes for better controls in it.
o Working with ERP (Dynamics AX) implementation team to evaluate and recommend controls at implementation time.
*Assurance Services:
o Audit of retail stores including stock verification, cash reconciliation and observing general operations.

PEL is one of leading manufacturer of Electrical Capital Goods and Home Appliances in Pakistan with customers around the world.

Operational audit of Customer Service Centers (CSCs) and Sales Offices network:

As team leader, operational audit of national network of Customer Services Centers (CSC), Area Sales Offices (ASO) and Finished Goods Stores that included 20 CSCs, 22 ASOs and 16 Finished Goods stores in 20 different cities. My responsibilities included:
*Preparing annual audit plan and annual budget to conduct audit of all branch offices once in a year.
*Planning and executing audit of individual branch offices.
*Training junior audit executives and interns, assigning planned audit activities to them during branch audit and monitoring their progress.
*Discuss audit observations and recommendations with management and persuading management with reasons to accept and implement audit recommendations.
*Preparing final audit report along with executive summary for audit committee.
*Follow up of required management action plans for unresolved audit observations.

Financial Audit:
January 2014 to January 2016 (2 Years)

My responsibilities were:
*Verification of installment amounts of principal and markup paid against term finance facilities.
*Verification of installment amounts and applicable KIBOR rate against leased vehicles.
*Verifying that entries are posted in proper ledger accounts.

I audited two production facilities as team leader and six production facilities as senior team member. Audited production facilities including Distribution transformer (DTR), Power transformer (PTR), Instrument transformer (ITR), Switch Gear (SWG), Refrigerator, Deep freezer and Split air conditioner (Split AC). My responsibilities included:

*Preparing audit plan for the engagement mentioning identified risks, audit objectives to be achieved and audit procedures to be carried out to achieve audit objectives.
*Evaluating production process efficiency by preparing:
o Reconciliation of raw material and accessories issued during the audit period.
o Quantifying and evaluating reasons of in process rejections on production floor.
o Evaluating abnormal wastage in the process, identifying there reasons like unskilled labor, wear tear of machinery, low quality of material used etc. and recommending mitigating actions required.
*Evaluating manpower efficiency by reconciling actual labor-hours consumed with standard labor-hours required for the production during the audit period.
*Evaluating new vendor’s development process by analyzing data of new vendors developed during audit period and rejection ratio of components provided by different vendors.
*Evaluating Bill of Quantity (BOQ) by comparing quantities of material as per BOQ with physical quantities of material used in production.

Operational audit of Customer Service Centers (CSCs) and Sales Offices network:

As audit team member, my responsibilities included:
*Reconciling cash and inventory at CSCs and Finished goods stores.
*Verification of approvals and reasonableness of petty cash expenses and compliance with company policies.
*Reconciliation of stock dispatched from head office and received at branches.
*Physical verification of capital assets and their safeguarding by evaluating physical conditions and controls.
*Evaluating operational effectiveness of customer service centers specifically variables of customer satisfaction that included timely completion of customer complaints, ratio of complaint repetition etc.
*Evaluating profitability of each center by preparing P&L.
*Verification of jobs attended under warranty against warranty terms and conditions on sample basis.
*Dealer’s ledgers verification by visiting sample of dealers selected on risk based criteria.
*Preparation of draft audit report and forwarded to team leader.