Audit Program for Sale/Sale Return
The Audit Program for Sale/Sale Return involves the review and check of the following −
- Complete accounting system right from the receiving of sale orders from customers to the receiving of payment from customers against the generated sale invoice.
- Indirect Taxation entries like VAT/CST/Excise and Service Tax as applicable.
- Stock valuation.
- Generation and approval of credit notes.
- Provision for doubtful and bad debts.
- Accounting entries for installment received, interest elements and unrealized profit in case of sale made on hire-purchase system.
Audit Program for Purchase/Purchase Return
The Audit Program for Purchase/Purchase Return involves the review and check of the following −
- Complete accounting system right from the issuance of purchase orders to suppliers till the payment to suppliers/creditors against the purchase invoice.
- Checking of department-wise material requisition slips.
- Authorization of requisition slips and purchase orders.
- Comparison of quantity and rate of purchase bills with purchase order.
- Material inward record with purchase bills.
- Checking of Stock register.
- Checking of purchase return note with purchase bills.
- Impact of Indirect Taxation entries on the Cost of Purchase or Input Tax Credit account, CENVAT Account for VAT/CST/Excise and service Tax as applicable.
Audit Program for Cash/Bank
The Audit Program for Cash/Bank involves the review and check of the following −
- Check posting and balancing of Cash book.
- Check petty cash book if maintained.
- Check cash receipt with cash book.
- Check cash payment voucher with relevant support bills.
- Authorization of cash payments.
- Check accounting for cheques/demand draft received.
- Check cash withdrawal entries with Bank statements and entries in cash book.
- Checking of direct deposit into bank by parties.
- Checking of bank reconciliation.
- Physical verification of cash.
Audit Program for Salary/Wages
The Audit Program for Salary/Wages involves the review and check of the following −
- Collect organization chart and list of officers.
- Authorization of above list of employees with salary.
- Review employment contracts of the employees.
- Compare authorized salary with expense account.
- Collection of information about stock option, bonus plan or other incentives as applicable to employees.
- Scanning of stock register and stock issue record about issuance or reservation of shares to employees.
- Review Salaries, incentives, bonus and compensation etc. with basic evidence.
- Check and review legal formalities as applicable to organization such as E.S.I/ provident fund/TDS etc.