Chartered Accountant
134 Points
Joined September 2008
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.