Dear Sir,
Please provide me the checklist during the checking of Cash Credit A/c. in Company. Which point we have to kept in mind while checking the Cash credit Account ?.
Rahul Panday (Internal Auditor) (47 Points)
02 February 2015Dear Sir,
Please provide me the checklist during the checking of Cash Credit A/c. in Company. Which point we have to kept in mind while checking the Cash credit Account ?.
C.A. P. HAREESH KUMAR
(PRACTICE)
(375 Points)
Replied 03 February 2015
Pl confirm that you are veryfing the cash credit loan account of a client company
If so few points we can share
1) Verify the recocilliation with Bank statement - Ensure that liabity is correctly stated
2) Examine all reconcilliation items - investigate long pending items / disputed items
3) Latest Sanction / renewal letters to know the terms of sanctions - tenure -interest - penalties stock / receivable that is hypothicated - frequency of stock statement - D/P & margins
4) Call for copies of stock / receivable audit report - Inspection report etc to know whether any breach occured resulting in penalty
5) Expenses such as processing fees - Interest etc have been correctly provided on accrual basis
6) Disclosure in Balance sheet - under current liabilities -Name of the Bank , Notes on the nature of security . guarentee provided etc
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