Industry SolutionManufacturing & Production

Manufacturing Company Audit Automation

CORAA handles the most time-consuming procedures in manufacturing audits — inventory reconciliation, revenue cut-off, CARO 2020 extraction, and vendor analysis — all from a single Tally import.

Manufacturing Audit Challenges

Manufacturing clients add inventory complexity and multi-location operations to standard audit requirements.

Inventory Costing Complexity

FIFO or weighted average costing across raw materials, WIP, and finished goods. Valuation at cost or NRV. Slow-moving and obsolete stock provisioning. Each element requires data extraction and verification.

Revenue Cut-Off

Manufacturing companies dispatch goods throughout December and January. Accurate revenue cut-off requires tracing each late-December dispatch against the invoice date, POD, and accounting entry.

CARO 2020 Reporting

All non-small companies must comply with CARO 2020. For manufacturing, key clauses include: physical verification of inventory, charges on assets, immovable property, statutory dues, and related party transactions.

Multi-Rate GST

Manufacturing clients often have inputs taxed at multiple GST rates. ITC reconciliation requires matching GSTR-2B with books across multiple product lines and HSN codes.

What Gets Automated

One Tally import. All procedures run simultaneously.

Inventory movement analysis — purchases, consumption, closing stock reconciliation
Revenue cut-off testing — dispatches near year-end vs sales ledger
Fixed asset capitalisation review — capex vs opex classification
CARO 2020 data extraction across all relevant clauses
Vendor payment analysis — round numbers, related parties, new vendors
GST reconciliation — manufacturing sector multi-rate complexity
TDS on contract payments, professional fees, and rent
Bank reconciliation across operating and CC accounts
Related party transactions — subsidiaries, group companies, promoter entities
Working paper generation with full audit trail
Ledger scrutiny — 100% of transactions, all ledgers
Journal entry testing — weekend entries, post-closing entries

Start Your First Manufacturing Audit on CORAA

Free 14-day trial. No credit card. India-hosted. DPDPA compliant.