Scrutiny of Record for Audit Purpose

cash balance

investments

bills receivables

debtors

valuation

existence

disclosure

possession

A person signing the chques should cancel the supporting documents

Chques should be signed by at best two persons

the data of payment of vouchers of similar nature should be the same or close to each other

All of these

daily cash sales summary

salesmen’s summary

monthly statements sent to customers

bank statement

commission earned

bad debts recorded

credit sales

sale of scrap

reducing the cost of acquisition

selecting supplies

authorizing the acquisition of goods

assuring the quality of goods

purchases could be made from vendors whose product quality may not be good

purchases may be made from related parties without management’s knowledge

purchases could be made from vendors who may have offered price to vice-president Purchases

any of these

credit notes, advice notes and inward return notes

debit notes, advice notes and inward return notes

purchase invoices, advice notes and inward return notes

credit notes, inspection report and inward return notes

establish physical barriers over investment securities

maintain files of authorized signatures

segregate investment approval form accounting and from custody of securities

all of the above

Freehold land

Plant and machinery

leasehold property

motor vehicles