Discuss those points which an auditor should kept in mind while auditing the sugar mill

AUDIT OF SUGAR MILL :-
The auditor should give special attention to the following points while auditing the sugar mill or company :

1. Internal Check :-
Auditor should examine the system of internal control in the mill. He should know that this system is working efficiently or not.

2. Payments To The Farmers :-
Auditor should vouch the supply of payments made to the farmers against the supply of sugar cane. He should see that payment procedure is perfect.

3. Vouching :-
Auditor should vouch all the receipts and payments of the mill carefully.

4. Cash And Bank Balance :-
Auditor should check the cash in hand and bank balance with the bank statements. Pass book entries should be reconciled with the cash book.

5. Purchase And Sale Journal :-
Auditor should examine the sales and purchase journals with the invoices and other documents.

6. Expenses Of Dead Season :-
Dead season expenses must be verified by the auditor and it should be checked that these are properly recorded in the books of accounts.

7. Allocation :-
Auditor should verify that proper allocation is made between capital and revenue or not.

8. Contingent Liabilities :-
Auditor should verify that such liabilities are written on the foot notes under the balance sheet.

9. Payment To The Workers :-
Auditor should verify tat wages ans salaries are paid according the wages sheet and salary book.

10. Depreciation :-
Auditor should check that proper depreciation has been provided to the fixed assets like building and machinery.

11. Verify The Excise Duty :-
Auditor should verify the accounts of excise duty on the manufactured goods of the sugar company.

12. Checking Of Outstanding :-
Auditor should the outstanding income and expenditure of the company. He should verify that these are recorded in the books of accounts.

13. Loans :-
Auditor should verify all the loans advanced to the company with terms and condition he should verify that loan was taken for the company interest. It was used properly.

14. Checking Of Stock :-
Auditor should examine the records of the stock very carefully.

15. Carriage System :-
Auditor should check the out ward carriage system of sugar. He should see that this system is effective or not.