Vouching 2nd Slides ( BBA FELLOWS )

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

PRESENTATION OF AUDITING 2010: 

PRESENTATION OF AUDITING 2010 UNIVERSITY OF SARGODHA 1 Download from : BBA FELLOWS

MEMBERS OF GROUP: 

MEMBERS OF GROUP HUMAIRA KHAN 16 MADIHA ASLAM 27 ABUL HASSAN 28 ZAIN-UL-ABIDEEN 41 FAKHER SAEED 107 2 Download from : BBA FELLOWS

ABUL HASSAN 28: 

ABUL HASSAN 28 VOUCHING OF PETTY CASH BOOK VOUCHING OF BILL RECEIVABLE 3 Download from : BBA FELLOWS

PowerPoint Presentation: 

Also called float , revolving fund . WHY WE USE IT ? To reduce burden of main cash book & avoid theft. To meet day – to – day expenses.(like postage, travelling & stationery exp. ) WHO RECORD IT ? A petty cashier appointed by the chief cashier. WHAT RECORD IN IT ? Only petty expenses record in it , no receipt. PETTY CASH BOOK 4 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF PETTY CASH BOOK Match drawn petty cash with cash book or bank statement. Check supporting evidence or physical existence ( where internal control is loose ) Signed by the petty cashier at the end of the month. Posting should be checked into general ledger. Surprise count of petty cash with petty cash book balance. Cash on hand physically counted at the end of the period. Allocation of expenditure should be properly verified. Payment vouchers are properly authorized. 5 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF BILL RECEIVABLE posting to ledger account & individual . If dishonored ,amount debited to customer account. Proceeds of discounted & matured bills should be traced into cash/bank book. Check certificate received when bill sent to bank for collection. Overdue bill must be scrutinized and fully discussed with the management. Bills on hand should be physically checked with balance of bills receivable account in general ledger. 6 Download from : BBA FELLOWS

PowerPoint Presentation: 

ZAIN-UL ABIDEEN 41 VOUCHING OF SALES BOOK 7 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALES ORDER CHECKING WHETHER THE Proper record HAS BEEN maintained or not ? CHECKING WHETHER THIS RECORD IS Matching with sales invoices or not ? 8 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALES BOOK CHECKING WHETHER THE ENTRIES ARE SUPPORTED BY SALE INVOICES OR NOT? 9 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALES INVOICES CHECKING WHETHER THE SALES INVOICES Are made out in the name of concerning debtor ? CHECKING WHETHER THE Same names of debtor are present in sales book or not ? Checking of mentioned date in invoices. 10 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK TRADE DISCOUNT CHECKING WHETHER THE Discount deducted or not? CHECKING WHETHER THE DISCOUNT Given IS according to the decided rate or not? CHECKING WHETHER THE Net amount entered in sales book from invoices or not ? 11 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK DISPATCH OF GOODS Checking of sales invoices. Checking of dispatch note. Checking of good outward register. Checking of finished good register. 12 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK AUTHORIZATION CHECKING WHETHER THE Sales invoices are authorized or not ? 13 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK TENDERS ANR QUOTATIONS CHECKING WHETHER these TENDER AND QUOTATION ARE matching with sales invoices or not? 14 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK ALLOCATIONS Checking of allocation of sales. CHECKING WHETHER that sales of trading and non trading item are properly differentiated or not ? 15 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK TOTALS Is there any mistakes in summing up the amount ? Checking the mathematical error. 16 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK POSTING CHECKING WHETHER THE Exact total has been carry forward or not? Posting to general ledger. Posting to sundry debtor ledger. 17 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK CASTING Checking whether the casting has been done properly or not? Checking whether the cross casting has been properly done or not ? 18 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK INSUFFICENTALLY VOUCHED List should be made. These should be handed over to management for clearing them . 19 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK MISSING INVOICES These should be reported to the management for making the availability of these invoices. 20 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK EXPORTS Checking of sales invoices. Checking the term of invoices (FOR,FOB,CIF). Examining the sales conversion rate. Checking of shipping bills. Checking of clearing and forwarding bills. Checking of freight receipt. Checking of sales contract. Checking of export order received. 21 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALES ON CONSINMENT BASIS As an Agent: Separate a/c of consigned good s have been maintained or not ? Consignment sales and normal sales are properly differentiated or not ? The commission received for sales has been recorded or not? As a principal: Checking whether the sales are recorded after the consignee confirmed it or not? 22 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALE OR RETURN Checking of goods sent on sale or return basis. Checking whether sales are recorded after the consensus of customer. If recorded in prior than proper adjusting entries are made or not? These goods are taken as stock or not? These good valued according to LCM rule or not? 23 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SALES TAX Checking whether the actual amount of sales tax added to invoice price or not? Checking whether sales tax paid to government or not? 24 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK NO FICTICIOUS SALE Checking of sale journal. . 25 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK HIRE PURCHASE SALE Checking whether these sales recorded separately or not? . 26 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK PROVISIONAL SALE INVOICES Checking whether the relevant adjustment are made in sales invoices or not? Checking whether these changes are properly incorporated n the book or not? . 27 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK FORWARD SALE CONTRACT Checking whether the sales recorded after the delivery of goods or not? Checking whether the profit is recoded in advance or after the completion of transaction . 28 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES BOOK SUPPRESSION AND INFLATION OF SALES SUPPRESSION = SHOWING LESS SALES THAN THE ACTUAL INFLATION = SHOWING MORE SALES THAN THE ACTUAL CHECKING WHETHER THE SALES BOOK DATA IS MATCHINCG WITH THE GOODS SENT OUT RECORD FOR LAST TWO OR THREE WEEKS OF THIS ACCOUNTING YEAR OR NOT? CHECKING WHETHER THE SALE INVOICES ARE SHOWING THE FAIR RESULT FOR THE FEW WEEKS OF NEXT ACCOUNTING YEAR OR NOT? CHECKING WHETHER THERE IS ANY MATERIAL VARIATION IN GROSS PROFIT OR NOT ? 29 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF HEAVY SALES CHECKING WEATHER ALL THE GOODS WERE DELIVERED PRIOR TO THE END FINANCIAL YEAR. CHECKING WHEATHER THOSE GOODS WERE INCLUDED IN THE CLOSING STOCK OR NOT. 30 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF ERRORS AND FRAUDS IN SALES GOODS SENT ON APPROVAL BUT NOT YET ACCEPTED BY THE CUSTOMER,MAY BE TREATED AS SALES. GOODS SENT TO THE AGENT FOR SALES BUT NOT YET SOLD,MAY BE TREATED AS SALES. SALES OF FIXED ASSETS MAY BE RECORDED AS NORMAL SALES. NEXT YEARS SALES MAY BE TREATED AS THIS YEARS SALES. SALES OF CONSIGNMENT INWARDS MAY BE TREATED AS SALES FICTITIOUS SALES MAY BE RECORDED. 31 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF STATEMENT OF ACCOUNTS CHECKING WHETHER THE AMOUNT OF SALE INVOICES ARE MATCHING WITH THE ENTRIES APPEARING IN THE STATEMANT OF ACCOUNTS OR NOT ? 32 Download from : BBA FELLOWS

PowerPoint Presentation: 

FAKHER SAEED 107 VOUCHING OF SALES RETURN 33 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN Sales return book Its should be vouched with credit notes issued to debtor. 34 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN Credit notes While checking credit note special attention should be given to these point: It is made out in the name of the client. The name of debtor as given on the creditor note agrees with the sales return book. The date of credit note falls within the accounting year under audit. It has been internally checked by some member of the staff or the client in it bears his initial in token of internal checking. 35 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN ALLOCATION : THE DEBIT TO THE REVENUE ACCOUNT SHOULD BE GIVEN IN THE BOOK OF CLIENT TO THAT HEAD OF ACCOUNT WHICH WAS PREVIOUSLY CREDITED. 36 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN GOODS FOR RETURN: THE GENERAL REASON FOR THE DEBIT NOTE(GOOD NOT IN ACCORDANCE WITH SAMPLES OR OF INFERIOR QUALITY) SHOULD BE INQUIRED INTO . CORRESPONDANCE ON THE SUBJECT SHOULD BE CAREFULLY READ. THIS SHOULD BE DONE IN CASES OF EXCEPTIONAL NATURE OR WHERE THE AUDITOR FEELS THE DOUBTFUL ABOUT THE ACCURACY OF ENTERY. 37 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN CASTING: CHECK THE ADDITION AND BALANCES OF THE SALES RETURN BOOK AND FURTURE POSTING, CARRY FORWARD AND BROUGHT FORWARD IN THE SALES RETURN ACCOUNT . 38 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN MANUPULATION: THE ENTRIES IN THE SALES RETURN BOOK FOR THE EARLY PART OF NEXT PERIOD SHOULD BEEXAMINED. THERE IS A PROBABILITY OF ACCOUNT BY INCLIDING THE FICTITIOUS SALES DURING THE YEAR UNDER AUDIT AND SHOWING THEM AS RETURNED AFTER THE END OF ACCOUNTING PERIOD. 39 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF SALES RETURN STATEMENT OF ACCOUNTS: A TASK CHECK OF AMOUNTS IN RESPECT OF CREDIT NOTES INTO STATEMENT OF ACCOUNT (IF RECEIVED REGULARLY) IS ALSO SUGGESTED. 40 Download from : BBA FELLOWS

PowerPoint Presentation: 

MADIHA ASLAM 27 VOUCHING OF PURCHASES 41 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF PURCHASES BOOK Before vouching of the purchase book , the auditor should check the system of internal check that is in operation so that he goes to know where the possibilities of any fraud exist. In case the internal check system is satisfactory , the auditor should adopt the following technique for vouching the purchase book. 42 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF PURCHASES BOOK 1.Purchase book:- It should be vouched with the invoices ,bills or credit memos. The vouched documentary evidence should be cancelled by a rubber stamp so it cannot be used again. 43 Download from : BBA FELLOWS

PowerPoint Presentation: 

2.CHECKING THE ENTRIES ON THE BASIS OF PURCHASE INVOICES:- The following points need to be kept in mind while checking the purchases invoices. The invoice is in the name of The invoice bears the significant of a responsible person who has checked it. The name of supplier or creditor in the Invoice is the same as in purchase book. The invoice number , date and amount is correctly entered in the purchase book. The trading discount has been deducted from the Invoice amount and only the net amount is entered in the purchase book. Invoice is related to business of the client. In case the invoice is correct , it should be stamped after it has been examined so that it is not used again. VOUCHING OF PURCHASES BOOK 44 Download from : BBA FELLOWS

PowerPoint Presentation: 

3.MAINTAINING A RECORD OF LOST VOCHERS:- Any Invoice which has been lost and for which no duplicate is available must be written in a notebook by the Auditor. In case any invoices are not available while vouching , the relevant entries can be authenticated by asking for duplicate invoice s from the suppliers. VOUCHING OF PURCHASES BOOK 45 Download from : BBA FELLOWS

PowerPoint Presentation: 

The allocation of expenditure should be checked. he Auditor should keep in mind that capital expenditure have not been written as Revenge expenditure. 4.ALLOCATION:- VOUCHING OF PURCHASES BOOK 46 Download from : BBA FELLOWS

PowerPoint Presentation: 

5 .USING THE GOODS INWARDS BOOK :- Sometimes invoices are withheld or suppressed with the intention of manipulating the accounts so that purchases are shown to be more or less than the actual purchases. The accounts are sometimes manipulated at the beginning or the end of financial year to show a higher or lower profit. The auditor should need to check the G oods Inwards Book and the Good received Note with the purchase. Auditor needs to be extra careful and ensure that all goods for which there are invoices have been received by the store. He must ensure that all invoices has been omitted and has been entered twice in he purchase book. VOUCHING OF PURCHASES BOOK 47 Download from : BBA FELLOWS

PowerPoint Presentation: 

6. CHECKING TOTALS AND POSTING:- After checking the invoice entered in the Purchase Book, the Auditor should check the totals and balances. Postings to general ledger and some of the postings to the sundry debtor ledger should also be checked. VOUCHING OF PURCHASES BOOK 48 Download from : BBA FELLOWS

PowerPoint Presentation: 

7.PROVISIONAL PURCHASES INVOICES:- If any invoice is marked ‘Provisional’, the auditor should see that the relevant adjustments are made through final invoices and correct liability is reflected in the book. VOUCHING OF PURCHASES BOOK 49 Download from : BBA FELLOWS

PowerPoint Presentation: 

8. IMPORTS In case of imports , supporting documents such as letter of credit, foreign invoices, exchange conversion rates, shipping bills, bills of entries, cleaning and forwarding bills, freight receipts , bankers advice , bills of exchange should be examined. Goods physically received against imports should also be very verified from the Assets receiving Reports. VOUCHING OF PURCHASES BOOK 50 Download from : BBA FELLOWS

PowerPoint Presentation: 

9. GOODS RECEIVED ON CONSIGNMENT:- Invoices of goods received on consignment and goods received on approval also need to be examined to ensure that the same have not been entered as purchases in the Books of Accounts. VOUCHING OF PURCHASES BOOK 51 Download from : BBA FELLOWS

PowerPoint Presentation: 

HUMAIRA KHAN 16 VOUCHING OF PURCHASE RETURN 52 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF PURCHASE RETURN BOOK PURCHASE RETURN BOOK: Its should be vouched with DEBIT notes issued to THE CREDITORS. 53 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF DEBIT notes While checking DEBIT note special attention should be given to these point: It is made out in the name of the client. The name of THE CREDITOR as given on the DEBIT note agrees with the PURCHASE return book. The date of DEBIT note falls within the accounting year under audit. It has been internally checked by some member of the staff or the client in it bears his initial in token of internal checking 54 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF ALLOCATION : THE CREDIT TO THE REVENUE ACCOUNT SHOULD BE GIVEN IN THE BOOK OF CLIENT TO THAT HEAD OF ACCOUNT WHICH WAS PREVIOUSLY DEBITED. 55 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF GOODS SENT OUT: THE ENTRIES FOR THE GOODS RETURNED SHOULD BE CHECKED WITH THE GOODS OUTWARDS BOOK OR WITH GATE IN PASSES. 56 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF REASON FOR RETURN: THE GENEREAL RREASON FOR THE RETURN SHOULD BE ENQUIRED (GOODS SENT WERE NOT IN ACCORDANCE WITH SAMPLES SHOWN) 57 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF CASTING: CHECK THE ADDITION AND BALANCES OF THE PURCHASE RETURN BOOK AND FURTHURE POSTING, CARRY FORWARD AND BROUGHT FORWARD IN THE PURCHASE RETURN ACCOUNT. POSTING TO THE GENERAL LEDGER AND SOME OF THE POSTINGS IN THE CREDITORS LEDGER SHOULD ALSO BE CHECKED. 58 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF MANUPULATION: THE ENTRIES IN THE PURCHASE RETURN BOOK FOR THE EARLY PART OF NEXT PERIOD SHOULD BEEXAMINED. THERE IS A PROBABILITY OF ACCOUNT BY INCLIDING THE FICTITIOUS PURCHASE DURING THE YEAR UNDER AUDIT AND SHOWING THEM AS RETURNED AFTER THE END OF ACCOUNTING PERIOD. 59 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING OF STATEMENT OF ACCOUNTS: A TASK CHECK OF AMOUNTS IN RESPECT OF DEBIT NOTES INTO STATEMENT OF ACCOUNT(IF RECEIVED REGULARLY)IS ALSO SUGGESTED 60 Download from : BBA FELLOWS

PowerPoint Presentation: 

VOUCHING THE END 61 Download from : BBA FELLOWS