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Vouching of purchase invoice


HOW MANY THINGS SHOULD WE CHECK WHILE VOUCHING PURCHASE & SALE INVOICE IN CASE OF INTERNAL AUDIT?

 
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Invoice number, date, PO number, vendor signature, material qty , amount per unit & the taxes.

 
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CA Final - Group II cleared

Hi guys ..

 

Answer by navinkumar is right, but I would like to tell avtar singh that follow the concepts of 'Materiality' and 'Professional Judgement' throughout an Audit.

 

Check only material Purchase / Sale transactions (keeping in view the time limit of any audit).

 

And apply your professional judgement i.e. any other suspicious matter if you come across, check it in detail. It may happen that after checking routine items, you may not get any thing but analysis of unusual transactions or matters may give you lot of stuff to audit.


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Semi Qualified Assistnt

dear avtar,

first of all its important to know the objective and the pupose of the work u are doing.For the purchase vouching the objective is to verify that the rates charged by the supplier is as per the rates quoted in purchase order of our client of whose audit we doing also make sure that the goods have been received in proper condition there plz check the related Goods receipt note and the signature of the person responsible for taking the gooda. Also mach the same with the gate entry register as well as the lorry receipt which provides of when and the actual qty of the goods delivered.


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Semi Qualified Assistnt

For the sales vouching ypu should check whether the rates that has been quoted by the marketing manager is accordance with the pricing list of the entity. Further in case the rates are being quoted by the purchaser then ensure that the rates have been first authorised by the concerned person and also the sale invoice has been prepared in accordance with the rates. Futher also check the dispatch note inorder to ensure that correct qty has been delivered also check the LR copy.


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When you say "How many things.." , then audit becomes a restricted activity and more of a "ticking" thing. As Yogesh rightly pointed out there may be things which may be suspicous but may not come out of a routine voucher exercise. 

Analytical procedures must also be applied to enhance the findings of vouching and verification. Its all a matter of professional judgement.


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Dear Avtar,

 

                       You are sking "HOW MANY THINGS" not "WHAT ARE THE ITEMS". It is showing what concentration you are having in the place of auditing. Audit is not simply ticking job. Its a analytical and observation job then only you will justice for your job.

Regards

 

Praveen

 


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One important thing to check in case service tax/ VAT is applied by the vendor. Service tax registration/ TIN number. No tax invoice is valid without TIN/ ST number.

 


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One important thing to check in case service tax/ VAT is applied by the vendor. Service tax registration/ TIN number. No tax invoice is valid without TIN/ ST number.

 


Total thanks : 1 times

 
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One important thing to check in case service tax/ VAT is applied by the vendor. Service tax registration/ TIN number. No tax invoice is valid without TIN/ ST number.

 


Total thanks : 1 times

 
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