WHILE CONDUCTING AUDIT OF EXPENSES, RECEIPTS AND INVOICES ARE VERIFIED.EVEN THE SMALL AMOUNTS OF EXPENSES CAN ALSO BE VERIFIED, RIGHT? THEN HOW SMALLER EXPENSES LIKE TRANSPORT FARE OF AN AUTO RICKSHAW OR A TAXI THEREBY INCURRED FOR THE OFFICIAL PURPOSE BY ANY OF THE EMPLOYEES WILL BE VERIFIED AS WE CANNOT DEMAND FOR AN INVOICE OR A RECEIPT EVERYWHERE?
Dear lakshmi,
You need to keep the materiality considerations in your mind. On the basis of general trend, change in fairs, employee strength, turnover etc, you can get an idea of the comfortable level of various expenses such as conveyance.
In case you find variations as compared to the expected trend, you may only to a very random test for such expenses. Else you may end up wasting your precious time on small items, leaving out the bigger picture untouched.
got it ! thank you ! 
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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