An internal audit of apparel industry needs assessment of quality, procedures, and systems with a clear view of performance and improvement. Apparel industry is one of the complex industries of India, internal audit needs precision. VGNC has extensive experience in offering Internal Audit and Enterprise Risk Services to clients active in the apparel industry. Today we will discuss technical aspects of internal audit of the apparel industry.
Example of Checklist of Apparel Industry
1. New workers personal file.
2. Salary Sheet.
3. Pay Slip.
4. Resign File.
5. Maternity File.
6. Earn Leave Register.
7. Leave Entry & Register.
8. ID Card Return Issue Register
9. ID card Return Register
10. Proximity card, Software, Grade, Deduction, OT Rate, Calculation of wages (basic rent, Medical Allowance), in time, short leave, attendance Bonus.
11. Workers List for Group Insurance.
12. Trade License.
13. Fire License.
14. VAT Clearance Certificate
15. Income Tax Clearance Certificate.
Although some of the checklist particulars are mentioned, you must remember that this checklist can be broad and detailed. Sometimes, auditors must use their acumen to create a suitable checklist that matches the needs of the clients business.
Types of Audit
There are two types of audit in the garment industry
1. Product audit
2. Process audit
You need to have well-designed process to deliver the standard set by you. With a right process, you can achieve desired quality and insights. Here is the process followed by quality department:
1. Management meeting
2. Factory meeting
3. Inspection of garment or apparel (like fabric)
4. Accessories inspection
5. Production and process inspection
6. In-line inspection
7. Pre-final inspection
8. Final inspection
If you are operating in the apparel industry, you need to follow certain standards at all stages. Customer’s preference acts as a driving force in the apparel industry. Buyer patterns are marked to guide the production cycle.
A process audit is important to assess the set procedures. This audit allows you to know whether right processes are being followed throughout your business or not. If an error or mistake is detected, it must be highlighted in the report. Internal audit consultants then suggest some corrective actions that are necessary for improvement.
The quality audit needs to be conducted to provide a stable growth to your business and identify the scope of improvements. Batch audits, inline inspection, pre-final inspection and final inspection are some steps that ensure clear, effective and quality audit.
Do leave in a comment box whether you would like us to publish a full technical guide or a broader checklist.