Examination of Test Checking: The auditor should see that only credit purchases of goods are recorded in Purchases Book. Otherwise, the Profit and Loss Account of the current year will not present true and fair position of operating results.
Each voucher should be stamped or initialed after the examination is over, so that it could not be produced again. However, if the auditor is satisfied that there is an efficient internal check system, he can resort to test checking.
Statement from the suppliers may be obtained to verify his purchases records. The Purchases Book should be verified with the help of purchase invoices, copies of orders placed, goods received note, goods inward book, and copies of challans from supplier.
It is an important financial book for a business concern. The auditor should examine the method adopted for depositing daily cash receipts in bank. Usually, cash receipts are entered first in the rough cash book before they are entered in the cash book. The auditor should verify the cash in hand by actually counting it and see whether it agrees with cash book balance.
The goods purchased should be actually received by the client.
If original invoice has already been recorded care should be taken to see that duplicate invoice is not entered again in the purchases book.
The pay in slip should invariably be used for this purpose. Vouching of Cash Transactions Points to be considered Vouching of Cash Transaction In a business concern, cash book is maintained to account for receipts and payments of cash. If there is a system under which a receipt accompanies the receipt of cash, such a receipt, usually known as delivery note should be properly signed and returned to the customer.
General Points to be Considered while Vouching Cash Transactions The auditor should consider the following general points while vouching the cash transactions: The names of the supplier as entered in the purchase invoice agree with the entry in the Purchases Book.
It should be checked that a responsible officer sanctions the purchase of goods and the goods purchased are of similar to those, which the organization deals. The goods purchased must not be for the personal use of directors, officers, secretaries, etc.
Ensuring Proper Control of Receipts Book: The quantity mentioned in the purchase invoice should tally with the quantity recorded in the Purchases Book.Internal Audit Program killarney10mile.com Internal Audit Program includes following contents are as under: Vouching Statutory Requirements Ledger Scrutiny HOME; CA.
CA CPT. ACCOUNTING; Cash Vouching. The following points needs to be reviewed at the time of Cash vouching. Cash Verification.
Vouching BASIC CONCEPTS Vouching The act of examining vouchers is referred to as vouching. it is the practice followed in an Where totals of the cash book or the ledger are found to have been made in pencil, the book keeper should be asked to.
Cash book, which is an important financial book for a business concern, is maintained to account for receipts and payments of cash. General points to be considered which vouching cash transactions are briefly explained. Name. Cash Bank Vouching.
Description. Audit procedures for cash vouching. Standard (Non-IT) Audit Program Comments. hi friends i would be pleased if you post a link or file for checklist of voching and general checklist please - Check list for Voching.
CHAPTER 4 10 Audit Checklist – For Companies Have you made list of items remaining unticked after your vouching is complete? 3. Cash/Bank Book – Receipts & Payments Have you checked whether cash collected is banked at reasonable intervals?
Have you checked balances at the end of different.Download