Supplier checking (audit)

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hi everyone...

Can someone tell me how is the supplier ledger of a company is checked... what is the purpose of it and points to be kept in mind while performing such audit...??

Replies (1)

Dear Kindly consider the following: (1) Purchase Register/Day Book - Whether all the Bills were accounted - A/c head wise - including Tax (2) Check the Bills (3) If the Co., has the practise of maintaing Purchase Order raised based on Purchase Requisition from the intender. (4) If the Co., has the habit of obtainig quotation from various vendors and finalised by the approving authority with price justification. 

Next step (a) Whether all the bills with ref accounted properly (b) Check the payment terms from the P O/Quotation (c) Payment effected Dt (if  Any discount for any early payment option.) (d) mode of payment viz., checque/Cash ( normally not entertained) RTGS/Neft - Bank a/c transfer.

If post dated cheques it also should be taken care.

At the end of the year or periodically get a confirmation from the Vendor to cross check the Ledger so that reconcilliation can be made then & there 

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