How will you vouch the following, 1. Commission paid 2. Commission received 3. Payments to creditors 4. Bank account

1. VOUCHING OF COMMISSION PAID :-
It can be vouched by the auditor in the following way :

1. Checking Of Commission Book :-
Auditor can vouch the commission paid by checking the commission book. It will be initialed by those people who had received the amount.

2. Inspection Of Agreement :-
If the commission is paid according to percentage on sale then auditor will examine the agreement. It will explain the exact terms of calculation.

3. Calculation Of Commission :-
Auditor will check dial percentages is calculated on net sale after deducting the allowance bad debts and returns.

4. Checking Of Unusual Increase :-
Auditor will also examine that is there any unusual increase. If there is any increase then it is authorized or not.


2. VOUCHING OF COMMISSION RECEIVED :-
It is vouched by the auditor keeping in view the following points :

1. Checking Of Account :-
Auditor should check the commission account with the account of parties from whom commission is received.

2. Inspection Of Agreement :-
Regarding the rate of commission auditor should examine the agreement with parties.

3. Checking Of Counter Foil Receipts :-
Auditor should verify the counter foils of the receipts with the cash book.

4. General Checking :-
Auditor should make all types of calculations to check the accuracy of the amount.


3. VOUCHING OF PAYMENTS TO CREDITORS :-
Auditor should check the following things while vouching the payments to the creditors :

1. Checking Of Invoice :-
All the invoices should be checked by the auditor.

2. Checking Of Receipts :-
Auditor should also verify the receipts given by the payee.

3. Checking Of Account Statements :-
All the accounts statements of creditors must be verified. He can send these statements to the creditor for confirmation with the permission of his client.

4. Checking Of Creditors Name :-
Auditor should also verify the names of the creditors.

5. Checking Of Account Posting :-
Auditor should check that posting to the relevant account is correct or not.


4. VOUCHING OF BANK ACCOUNT :-
While vouching the bank account following steps should be taken by an auditor :

1. Comparison :-
Auditor should compare the bank statement with the cash book.

2. Checking Of Date And Other Particulars :-
Auditor should check the date of each entry and other particulars like figures for proper vouching.

3. Checking Of Credit Side Items :-
The items on the credit of cash book should appear on the debit side of the bank statement. It should be verified by the auditor.

4. Checking Of Statements :-
Auditor should examine the reconciliation statement and entries of a few weeks of the succeeding period.