Vouching

Stat Audit 661 views 1 replies

How toscrutinize sales and closing stock if i dont have any stock report or stock register? Suggest me some technical way.

Replies (1)

i) Sales: You can check the sale for genuinity by verifying security stamping on delivery challan / invoices, reconciliation of monthly sales with VAT and Excise returns, collections against sales.

ii) Closing stock: You can verify the physical stock (on a sample basis) as on the date of audit and work back (add cost of goods sold and deduct purchases from the date of balance sheet to the date of physical verification) to obtain assurance on the closing stock as on the date of reporting.


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