Fake purchase and sales

This query is : Resolved

Share Report Follow Query Ask a Query

Deepak

Deepak (Querist)
Follow

17 June 2016 How to identify fake purchase and sales

bharath

bharath (Expert)
Follow

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.

Rupesh Jain

Rupesh Jain (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now