What Audit evidence should be collected for travel allowance given to employee

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When auditing travel allowances for sales executives, especially those covering fuel and vehicle running costs, specific evidence is needed. For fuel expenses, invoices are crucial. If the employee uses their own vehicle, a reimbursement form detailing vehicle specifics, fuel receipts, driver information, and garage bills can serve as sufficient audit evidence. If a travel agency or cab operator is used, their invoices are the primary documentation.

MonikaAgrawal

MonikaAgrawal (Querist)
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21 June 2021 If a sales executive is given Rs.1000 travel allowance for travelling inclusive of fuel and vehicle running exp

Fuel exp was say Rs. 700
And Rs.300 is towards running exp then What audit evidence should we collect against that vehicle running exp?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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21 June 2021 If a travel agency or cab operator is engaged then invoice of such parties. Otherwise of executive uses own vehicle then certain companies use a form whereby such employee apply for reimbursement. That will be sufficient audit evidence.