1. VOUCHING OF PURCHASE BOOK :-While vouching the purchase book auditor should pay special attention to the following points :
1. Internal Control Examination :-
The auditor should check the internal control system and decide that upto how much extent he can rely upon it.
2. Checking Of Invoices :-
The auditor should check the entries in the purchases day book with the invoice. He should pay his attention to the following points :
a. The date of invoice.
b. The name of the supplier.
c. The entry in the goods received register.
d. The account involved.
e. Initials of the checking authority.
3. Comparison With Order Book :-
Various entries of purchase book should be compared with the order book and good inwards book. In this way if there is any fictitious entry it will be traced out.
4. Checking Of Authority :-
The auditor should check that all the entries made in the book must be authorized by the responsible officer.
5. Vouchers Cancellation :-
As the voucher is passed it should be cancelled. The auditor should check it and vouch the purchase book with the credit memos, bill and invoices.
6. Over All Checking :-
The auditor should check the costs cross costs and carry forward of the purchase book.
2. VOUCHING OF SALES BOOK :-
Auditor should examine the following points while vouching the sales book.
1. Internal Checks System :-
Auditor should check the working of internal control and test the few entries.
2. Checking Of Invoices :-
a. Debtor's name.
b. date and amount.
c. The authority.
d. Trade discount.
e. Authority for gaining discount.
3. Duplicate Invoices :-
Auditor should check the entries in the sales book with the duplicate invoices.
4. Authority Checking :-
It should also be checked by the auditor that the invoice should be authorized by the responsible officer.
5. Comparison With Order Book :-
Auditor should compare the sales book with the order received book and goods outward book. It will show that no fictitious sale is made.
6. Verification Of Year :-
It should be also checked by the auditor that all the entries made in the sale book belongs to the year under audit.
7. Fixed Assets Sale :-
Auditor should check that if fixed assets are sold then these are recorded in the sales book. He should also check that these are posted in the sales account in the general ledger or not.
8. Dispatch Of Goods :-
Auditor should verify the sales invoices with the documentary evidence to ensure the dispatch of goods.
9. Over All Checking :-
The auditor should check the casts and carry forwards of the sales book.
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