How will you vouch the following, 1.Insurance premiums 2. Sales of investment 3. Directors fee 4. Postage 5. Rent 6. Traveling expenses of the directors

1. VOUCHING OF INSURANCE PREMIUMS :-
Auditor should give importance to the following steps while vouching the insurance premium :

1. Checking Of Policy :-
Auditor should check the insurance policy. He should check the receipt or the cover note of the new policy.

2. Related To Client :-
Auditor should also check that the insured property or goods belongs to the client or not.

3. Verify Names :-
Auditor should also check that the insurance policy stands in the name of his client.

4. Policy Lapsed :-
Auditor should also enquire that on whose authority the policy has been lapsed. He should also check the receipt of last premium paid.


2. VOUCHING OF SALES OF INVESTMENT :-
Auditor can vouch the sales of investment with the brokers sold note. In case of cum dividend sale auditor should check the proper allocation made between capital and revenue. Auditor should also check the articles of association and minutes of the board of directors meeting for sale authority.


3. VOUCHING OF DIRECTORS FEE :-
Auditor may vouch the directors fee in the following way :

1. Auditor should check the minutes of the board of directors meeting.

2. Auditor should also check the attendance of the directors in the meeting.

3. He should also check the articles of association.

4. Auditor should verify the amount of fees admissible for each meeting attendance.

5. Auditor should also check the receipt given by the directors.


4. VOUCHING OF POSTAGE :-
Vouching of postage is also very essential.
Following points should be considered in this case :

1. Cost of postage book should be checked.

2. Signed copies should be compared with the telegram receipts.

3. Letters or packet sent by air should be checked against cargo receipts.

4. Postal receipts should be checked with registered letters register.


5. VOUCHING OF RENT :-
Auditor should check the following items while vouching the rent :

1. Checking Of Agreement :-
Auditor should check the lease deed and agreement to know the due date, amount of rent payable. He should also check the other conditions like repair etc.

2. Checking Of Received Rent :-
Auditor should verify the amount of rent received. He should compare with the rent rolls or list of various properties.

3. Checking Of Counter Foils :-
If receipts are issued to the tenant then auditor should check the counter foils of the receipts.

4. Checking Of Agents Account :-
If rents are collected by agents, auditor should also check their accounts.

5. Checking Of Outstanding Rent :-
Auditor should pay proper attention to the outstanding rent and property.


6. VOUCHING OF TRAVELING EXPENSES OF THE DIRECTORS :-
The above expenses can be vouched by the auditor in the following way :

1. Checking Of Legal Documents :-
Auditor should check the articles of association or resolution of the directors to find the instructions about the traveling expenses of directors.

2. Checking Of Payment Vouchers :-
Auditor should check the payment of vouchers minutely to find that these are reasonable or not.