Petty Cash expenses of Rs. 1 Crore

Try to analyse the petty cash expenses of same period for previous year and find deviations. If the deviations are more than the tolerable limit then try to trace out activities where the major expenses are booked. Try to know the reasons for such expenses, their validation, their authorizations and their knowledge to the management (all concerned levels). If anything wrong is going on then one or the other level of management will be unaware of it or else the authorizations and validations would not be proper.

check out the previous year ratio, Do analytical review procedure and check the TDS certificates if it is applicable on that expenses, and most important thing to check are they booked under Right Head.

CASH EXPENSES. FOR RS. 80 LACS WHICH INCLUDES ADV. TO TRANSPORTERS, PURCHASE OF RAW MATERIALS & OTHER EXP... IS IT ALLOWABLE... PLS. GUIDE