Action taken report and open observation tracker
Only internal audit may close an observation, and only after re-testing the remediated control on a fresh sample from a period after the fix, because an observation closed on management's certification is not closed, it is merely no longer counted, and it will come back in year three wearing a new number.
- 7 pages
- 28
- Word and PDF
- 13 September 2026
What it covers
- 1Action taken report and open observation trackerQuarterly · SIA 390
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The first part of the format, as it downloads. Blanks are highlighted.
Part 1 — Management action taken report
[Pragati Auto Components Limited]
Action taken report on internal audit observations · For the Audit Committee meeting on [Date of the Audit Committee meeting]
Prepared by: [Chief Financial Officer] · Position as at [Position as at (date)]
Obs. no. | Observation (abridged) | Grade | Owner | Original due | Action taken by management | Evidence submitted | Mgmt status | Internal audit verification |
|---|---|---|---|---|---|---|---|---|
26-27/Q1/01 | Job-work stock Rs 4.63 cr unconfirmed; access refused at two job workers; Rs 1.18 cr beyond 12 months under GST | Critical | Head – Production (GZB) | 31.08.2026 | Confirmations sought from all 22 job workers on 18.07.2026; 16 received. Physical verification completed at 14 job workers. Legal notices issued to the 2 who refused access. GST liability of Rs 26.1 lakh computed and paid with interest in the August 2026 return | Confirmation file; verification reports; legal notices; GST challan no. [ ] dated [ ] | Partly complete | Open. Re-test scheduled Q2. 6 confirmations and 8 verifications outstanding. Challan traced to the bank statement and to GSTR-3B. Access still refused at both job workers — escalated |
26-27/Q1/02 | ITC Rs 41.2 lakh not in GSTR-2B; Rs 18.6 lakh time-barred | High | Head – Taxation | 30.09.2026 | Monthly GSTR-2B reconciliation implemented from July 2026. Letters issued to 42 vendors on 29.07.2026. Rs 18.6 lakh reversed with interest of Rs 4.81 lakh in the August 2026 return. PO terms amendment under discussion with Purchase | Reconciliation workings for July and August; vendor letters; GSTR-3B for August | Substantially complete | Partially remediated. Reconciliation for July re-performed by us: agrees. Reversal traced. Rs 12.3 lakh of the Rs 22.6 lakh recoverable now matched in 2B. PO amendment not done — item remains open for limb (d); revised date 31.10.2026 |