cash audit basic taxable norms?

Internal Audit 1045 views 3 replies
Pls help me the Cash audit points as per tax norms
Replies (3)

First of all see that any payment of expenses which are suppose to be debited to P/L A/c. should not be more than Rs. 20,000 at once.  Further see that all the cash payments should be authorised by the concerned authorised signatory.  These are towards Expenses side.  So far as income side always see that all the payments received should be entered inthe cash book.

As a good business practice, any company should deal all its transactions through bank only.

Very limited transactions should be done through cash.

Hence all cash voucher must be supported by a valid reason.

And yes there should not be payment of more than Rs.20000

 

Please also ensure that cash balance in the books tallies with physical cash-in-hand and also that books do not show negative cash balance at any given day.


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