Day: December 24, 2021

Cash purchases should be verified by reference to cash memos or receipted invoices by suppliers. Payments made against credit purchases should be vouched with the receipts issued by the suppliers and the credit to their accounts on the basis of Read More …

Under the Indian Stamp Act, 1899, instruments whereby payment is acknowledged, should bear a revenue stamp. An auditor, therefore, should see that the receipts produced in evidence of payments, shown to have been made are properly stamped. The date of Read More …

Bank reconciliation is an important accounting control. It is expected the students will be familiar with the method of preparing Bank Reconciliation Statement, as described in the text book. A copy of the statement duly signed by the accountant of Read More …

Sometimes the totals of a wage bill are inflated by over totalling the column in which the wages payable are entered. Such a fraud can be detected only if the totals of the wage bill are checked. Similarly, a cashier Read More …

General Considerations In any business probably cash transactions account for the largest bulk of transactions. Cash, being a highly liquid asset, is exposed to frauds of various types. Therefore, it is essential for an auditor to satisfy himself that the Read More …

The act of examining vouchers is referred to as vouching. It is the practice followed in an audit, with the objective of establishing the authenticity of the transactions recorded in the primary books of account. It essentially consists of verifying Read More …