Fake purchase and sales
This query is : Resolved
17 June 2016
Fake purchase and sales can be identified by below mentioned audit techniques:
1. Check Purchase/ sale invoice copies check the quantity purchased/sold, match the same with stock inward out ward register
2. Debtors and creditors outstanding for longtime also balance confirmation to be taken from such debtors and creditors
3.In many states Esugam/way-permit are mandatory check for stock outward movement.
4.Usually cash transaction are linked with fake purchase and sale, any suspicious or irregular purchase through cash has to be verified.In case of fake sales transaction usually would be routed through cash, tally cash book with physical cash.
1. Check Purchase/ sale invoice copies check the quantity purchased/sold, match the same with stock inward out ward register
2. Debtors and creditors outstanding for longtime also balance confirmation to be taken from such debtors and creditors
3.In many states Esugam/way-permit are mandatory check for stock outward movement.
4.Usually cash transaction are linked with fake purchase and sale, any suspicious or irregular purchase through cash has to be verified.In case of fake sales transaction usually would be routed through cash, tally cash book with physical cash.
Rupesh Jain
(Expert)
17 June 2016
you ca n check
1) Payment mode.- mostly will be is rounded off
2)gate register :- entry of goods inwards/outwards
3) use in mfg. then see the item is earlier use or not . and what is consumption form the last year.
4) cash withdrawls increase or not.
1) Payment mode.- mostly will be is rounded off
2)gate register :- entry of goods inwards/outwards
3) use in mfg. then see the item is earlier use or not . and what is consumption form the last year.
4) cash withdrawls increase or not.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Form 144 TDS Return Validation Error – Mandatory Fields
- TDS- 2026-27 Q1 Correction
- Capital gains in IT returns
- LLP audit and disclosure
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Advances to related party
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Form 144 TDS Return Validation error
- Ito add credit side of bank
- Employee secondment
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
