Statutory audit

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Ruchika Vyas (Querist)
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24 January 2012 Hi,

Please help me in solving the following:
How can we verify non cash item in cash flow statement:
If it is cash item and it is reflected as non cash item (knowingly) to increse the cash.

sahil jain

sahil jain (Expert)
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24 January 2012 1) Check that account thoroughly for which you have a doubt that this item can not be a non cash item.

2) See the payment pattern of the company to understand the payment procedure.

3) Check the bank statement. From there you can have an idea whether the payment has been made or not.

4) You can use your judgement as well