Saturday, 24 September 2011

How you will vouch the cash sales and cash purchases

Cash sales can be vouched by the auditor in the following way :

1. Internal Check :-
Auditor should evaluate the internal check and if it is proper system then he should rely on it.

2. Checking Of Memos :-
Auditor should check the cash sales memos and compare it with the daily summaries of salesman and cashier.

3. Entry In Cash Book :-
Auditor should also check the figures of the salesman and cashier summaries entry in the cash book.

4. Checking Of Cash Register :-
If cash register is used, auditor should check the total daily rolls with the entries in the cash book.

5. Checking Of Cash Book :-
Auditor should compare the cash book with the general ledger.

6. Checking Of Price Lists :-
Auditor should obtain and verify it price lists and other instructions by the authorize persons regarding the cash sales.

7. Guidance To Client :-
If internal check system is not effective than auditor should inform the client about the dangers of frauds. He should also suggest some measures.

While vouching the cash purchases auditor should take the following steps :

1. Auditor should compare the cash memos with goods received notes.

2. Cash memos should also be compared with the goods inward book.

3. Head of the account should also be checked.

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