What is the procedure to vouch sales transactions in case of
1. Internal audit
2. statutory audit
What is the procedure to vouch sales transactions in case of
1. Internal audit
2. statutory audit
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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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
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