The advertisement expenses will be vouched in the following manner :
- Ascertain the nature of advertisement expenses to ensure that the same have been charged properly.
- Obtain the complete list of advertisement, mediawise, i.e., newspapers, slides, hoardings, magazines, television, radio, etc. showing the dates, exact location, timings, etc., along with the amounts paid in respect of each category.
- See that advertisement expenses relate to the client’s business.
- Ascertain whether there is a regular contract with an advertising agency. See that regular statements are obtained from the agency showing the advertising media and amounts debited to the client. Discounts, if any, should be properly adjusted and disclosed in the bills.
- Check the receipts for amounts paid for the advertising expenses incurred.
- See that outstanding advertising expenses have been properly disclosed on the liabilities side of the balance sheet.
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