Documente Academic
Documente Profesional
Documente Cultură
Transactions are free from fraud and error and have documents in support thereof.
Authorised, (Transactions are authorised). Figures are accurate.
Represent true and fair view of the state of affairs.
Only those transactions are recorded which are related to organisation. No
transaction has been left out.
Accuracy in totalling carry forward, recording posting in the Books of Accounts.
IMPORTANCE
Backbone voucher is of audit, correct voucher will result in accurate Financial
Statement.
Distinction between Revenue and Capital.
Proper Authorisation.
All transactions have been recorded (No Omission), properly classified.
As per Generally accepted accounting principles.
Detection of error and fraud.
Essence of Auditing.
VOUCHER
Primary Vouchers original of written evidence - invoice, Bill Receipt.
Collateral vouchers original copies of evidence not available photocopies are made
available- Minutes, DD.
Internal vouchers – Vouchers originating in the origin. Pay Bill invoice, material
requisition slip, commission, discount allowed.
External Vouchers: vouchers originating outside organisation- Bank Statement,
Advice, Purchase Bills, Fright Bill, Handling charges, mortagedeed.
Internal Evidence: Copies of sales invoice employees attendance report these are
prepared in normal course.
External Evidence: Payees receipt Bank Advice, Confirmation of Balances with
Debtors and dues of creditors.
Principles of Vouching
Authorisation, accuracy, reliability, alternation duly supported by initials.
Ticked after audit to avoid duplimacy.
Distinction between capital and Revenue.
Related to Accounting period and Entity.
Voucher is complete in all respects.
Serially numbered and dated, written both in words and figures.
Proper explanation/ justification for missing vouchers.
TEEMING AND LEADING
Verification of Debtors Ledger
Balance Confirmation Certificate from Debtors ( Specially whose figures are due)
Efficiency of internal control system.
Bad debts written
Cash deposited in Bank duly supported by Bank Statement.
VOUCHING
Capital Expenditure
Fixed Assets Register
Title Deed/ Mortage Deed.
RECEIPTS
Minutes
Work to be performed
Tittle deed or lease- as the case may be.
Property contract be verification.
Registration expenses.
Contract for Building construction certificate of Architect for Cost Ascertainment.
Investments
Passbook, Receipts, Minute Book of BOD meeting, share/ Debenture certificate Duty:
Compliance with the rules of organisation and Govt.
Brokers Bills and receipt.
Bank Pass book.
BOD minutes Book for approval
Title of investment to ensure it has come to Co.
Bank Borrowing.
Titles Mortgaged.
BOD minutes book.
Bank statement.
Loan sanctions order.
Duty
Letter of loan – type of loan- OD/ term loan.
Balance Confirmation.
Bank Statement with details of securities deposited.
Board Decision for authorities.
Compliance to sec.223 of cost act.
Purpose and utilisation.
Purchase
Documents to be verified: Purchase Bill, Purchase order, Goods Inward Register, GRN
Stock Records.
Duty / Work / Performed
It is to ensure that only the goods actually supplied and accepted are entered in
books of accounts and paid. No false bogus invoice should come in the picture.
The purchase should be based upon proper authorisation.
The materials be utilised by the organisation.
Purchase Books Bills: for credit purchaser’s Challan/ GRN Receipt of materials for
receipt of materials, Receipt from the creditors, stock A/c. for details of materials
received should be examined.
The purchase should relate to the year concerned.
Internal check system to ensure that only credit purchases are recorded in the books.
CASHBOOK
Documents: Sales invoice challan signed by customer. Receipts issued to customers, sales
order for supply agreement with the parts statement of customers A/c.
Internal control system
Receipt of money to be verified/ entry in cash book.
There should not be missing receipt (Receipt No wise verification)
Details of discount allowed/ Terms of Contract/ Authorisation.
Verification of dues from the parties.
Interest or Dividends
Dividend warrant, Bank Statement, Agreement.
Bad Debt recovered
Insurance Claims received
Counter foil of the receipt
Survey report
Insurance policy
Statement of claim.
Cash Sales – Sales Bill, Cash Memo, Cash Sales summary.
Internal check system for prevention of misappropriation in sales
Copies of cash memos are verified – Dak Bunglow Vis- avis date of actual collections.
Calculations of sales price – Original of cancelled cash memo be checked to ensure
possibility of M/s appropriation.
Total of Cash Registers be checked with current rolls.
Cash Purchase
Cash memo: - Payment order, original receipt from the payee.
Goods inwards book.
Authorisation for purchase Authority
Circumstances in which cash purchase has been a made.
Internal control Mechanism.
Cash Memo be compared with entries in Goods inwards Bok \
Verification of discount availed.
Salaries and Wages
Documents: - Pay rolls, Cheques counter foil. Appointment letters/ service record
Attendance sheet/ Time sheet, Leave Account
Procedure
System of internal control.
Calculation of salary sheet/ pay rolls.
Figures of pay roll be compared with cash book. Cheque drawn.
Deposit if unclaimed salary into Bank.
Salary Sheet be compared with employment register to locate Ghost/ Dummy/
workers.
Comparison of figures of current month with previous month same month of previous
year.
Calculation of wages turnover ratio and other ratio.
Interest and Dividends
Bank statement, Securities Register, Dividend warrants, Agreements.
Procedure: - Dividend warrant be compared with cheques and covering letters
It collected directly by bank- same action with Bank Statement.
Bank Deposit interest be checked with pars Books.
Interest received and accorded be accounted for in the books of A/c.
Pre-requisitions period interest be adjusted suitably.