How you will vouch the 1. Entertainment expenses 2. Telephone expenses 3. Custom duties 4. Income tax
1. VOUCHING OF ENTERTAINMENT EXPENSES :-
To entertain the customers manager spends the amount which is called entertainment expenditure. Following points must be considered by the auditor :
1. While vouching such expenditure auditor should responsible officer.
2. He should also examine the resolution and minutes books for this purpose.
3. Some times fixed allowance is sanctioned to the manager. Such permission should also be verified by the auditor.
2. VOUCHING OF TELEPHONE EXPENSES :-
To vouch the telephone expenses auditor should keep in view the following points :
1. Telephone Bill Checking :-
Telephone expenses can be compared with the telephone bill by the auditor. He should also check that telephone bills relate to the telephone number of client.
2. Checking Of Receipt :-
Auditor should check the period and receipt of the telephone bill also.
3. Trunk Calls Checking :-
Auditor should compare the amount of trunk calls against the trunk call register. It will ensure him that trunk bills were official or private.
4. Payment Of Private Calls :-
Auditor should check that the amount of private trunk calls has been recovered from the official or not.
3. VOUCHING OF CUSTOM DUTIES :-
Following steps must be taken by the auditor to vouch the custom duties :
1. Checking Of Receipt Bill :-
If custom duty is paid directly, in this case auditor should check the receipt bill of entry.
2. Checking Of Monthly Accounts :-
If any forwarding agent is engaged by the company then auditor should check the following documents :
a. Monthly accounts.
b. Bill of entry.
c. Wharfage receipts.
3. Checking Of Charges :-
It should also be checked by the auditor that all the charges have been treated correctly as capital or revenue expenditure.
4. VOUCHING OF INCOME TAX :-
While vouching income tax auditor should keep in view the following points :
1. Verify The Calculation :-
Auditor should check the calculations and amount of income tax paid. He should compare them with challans receipts. He should also check the assessment orders and demand notices.
2. Checking Of Names :-
Auditor should also verify the names of officers and their names of challan. He should also check the certificate given by the income tax advisor.