BRS

suppose the management has given brs. what shout be the auditor's procedure to verify it.

plz tell me.

Replies (1)

First  you have to do is verify the Bank Balance as per ur books that is shown in the BRS. Then scrutinize the pending transactions.Like if chq is issued & not cleared than u can check the respective Bank voucher and the Bill/supporting against which the chq is issued,make sure the same is not fudged.U can also check the amount Cr. by bank by the Bank Statement. But it is necessary to do this becoz people can manipulate the transactions pending in the BRS just for the sake to reconcile or there may be any kind of Fraud prevalent in the organisation.Finally U tally the Balance after the adjustments with the Balance as per Bank Statements available to U. Moreover, it is always better to confirm the same with the Bank authority by Mail/Letter to make it more authentic as Cash & Bank being always the critical part in the organisation.

Nishant Baid

CPT.

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