What is the procedure to vouch sales transactions in case of
1. Internal audit
2. statutory audit
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How to vouch sales
Replies (1)
HI Harry
follow the following checklist....
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Sales
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Work Done
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Sr.No.
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Particulars
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1.
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Whether company maintains the sales register?
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2.
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Does company have documented list of Authorized personnel who sanction the Sales Invoices
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*3.
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What is accounting policy for booking of sales?
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4.
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Sales rejections - what is the policy with regard to sales rejections: -
- Accounting policy and timing of accounting
- Adjustment of sales tax
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5.
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Where company has any documentary policy for accounting the discount on debtors.
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6.
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Whether the company has established a procedure for ascertaining: -
- Related party transactions in accordance with Accounting Standard 18;
- Transactions with “Associated Enterprises” in accordance with Section 92 of the Income Tax Act, 1961; and
Companies under the same management under section 370 (1B) in accordance with The Companies Act, 1956.
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7.
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What are the cut-off procedures at the year-end for ensuring that the following procedures have been followed properly?
- The goods delivered have been invoiced
- Goods invoiced but not delivered have not been included in closing stock.
- Goods sent on approval have been included in closing stock.
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8.
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Is the sales tax assessments and status reports checked? Examine compliance with maintenance of records for Sales tax, Central Excise and Customs.
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9.
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What is the procedure for issuing credit notes in the case of: -
- Rejection in the ordinary course of business.
- In case of price revisions as per negotiation in customer
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10.
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Ensure that the balance of Sales is reasonably stated in the financial statements.
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