CA. Nitin Gupta
Rathore Institute
RATHORE INSTITUTE
How to prepare the chapter Vouching Basic points covered in vouching of all transactions: 1) Examine voucher of the transaction, it should be properly dated, serially numbered and duly authorized. calculation of voucher. 2) Examine the calculation of transaction. Related accounts are properly debited & 3) Examine proper recording of transaction. credited. Examine posting in relevant ledgers. ledgers. 4) Examine posting book. (Receipt/ Payment) 5) Examine cash book. received (in case of payment)/ provided (in case of receipt) 6) Examine acknowledgement received
Summary of Vouching Items Credit Sales
Procedures for vouching Examine sales book Examine sales invoice Examine numerical sequence of source documents generated within the entity Examine treatment of additional charges and trade discount di scount Routine checking Examine Examin e cutoff procedures procedur es
memorandum book Goods on sale Examine memorandum or return basis
Relevant documentary evidence Sales Book Sales invoices Goods outward notes
Sales vouchers at the beginning and end of current period Memorandum Book
CA. Nitin Gupta
Rathore Institute Examine inclusion of goods on Sales Book & Debtor ledger (If sale is sale or return basis in inventory approved) (If sales were not approved) Statement of customers giving details of inventory. Examine the case where sales Sales book were approved. (It will be considered as sale)
Goods on consignment
Examine consignment sales book
Sales Return
Examine sales return book, Store ledger. Examine credit notes (issued by entity to debtor who has returned the goods) Examine cutoff procedures
Credit Purchase
Consignment sales book, Copy of Performa invoices Examine account sale (Periodical Account sales statement received from consignee) Ensure posting into relevant Ledger of consignment account, ledger accounts nominee account and relevant nominal accounts Examine valuation of closing stock. (Loading should not be included in it) Examine commission paid to Agreement with consignee. consignee Sales return book, Store ledger. Credit notes. These serially numbered.
be
Sales return vouchers at the beginning and end of current period
Examine purchase book
Purchase book
Examine purchase invoice Examine numerical sequence of source documents generated within the entity Examine cutoff procedures
Purchase invoice Purchase requisition , Purchase order, Goods received notes Purchase vouchers at the beginning and end of current period
Goods purchased must not be for personal use of director’s & officers
Purchase
should
Examine purchase return book
Purchase return book
CA. Nitin Gupta
Rathore Institute
return Examine debit notes (issued by Debit notes. These should be serially entity to creditor to whom goods numbered. are returned) Examine cutoff procedures Purchase return vouchers at the beginning and end of current period
Cash sales
Examine cash book Examine cash memos Routine checking
Rent received
Examine cash book Cash book Examine rent receipts Rent receipts Special attention towards rent Lease deeds/Agreement outstanding. Routine checking List of property provided on rent, Recording, posting in relevant ledgers.
Dividend & interest received
Examine cash book
Cash book
Examine type of investments Examine dividend warrants Special attention towards interest outstanding Examine recording of dividend and interest at correct amounts Examine compliance with AS-9
Schedule of investment Dividend warrants Schedule of investment, loans and deposit Investment certificates
Examine cash book
Cash book
Commission received
Cash book Daily cash summary, Cash memos Salesmen’s summary, Goods delivered summary
Examine calculation of Commission agreement commission Examine commission outstanding Examine compliance with AS-9
Bad debt recovered
Examine cash book
Cash book
Verify bad debt dividend
Dividend warrant of official receiver, correspondence with official receiver.
CA. Nitin Gupta
Rathore Institute Ensure proper statement of P/L
Sale of scrap
Insurance claim
treatment
in
Examine cash book Examine sales invoice Review cost records and financial records Analytical review procedures Examine management procedure to identify scrap
Cash book Sales invoice Cost records, financial records
Examine cash book
Cash book
Past records
Examine copy of claim lodged Claim copy with GIC Valuation of loss Report of surveyor Examine correspondence with Copy of correspondence GIC and agent
Receipts of capital subsidy
Examine cash book
Cash book
Examine the correspondence with Correspondence with Government the Government and the copy of application Note the conditions attached with Copy of application, Documents grant related to grant of subsidy Ensure compliance with AS-12
Sale of Investment
Wages & Salaries
Examine cash book
Cash book
Examine Broker’s Note Authorization of sales Compliance with AS-13
Broker’s Note AoA
Examine cash book
Cash book
Examine the pay-roll summary Examine employee (employee name, wage attendance summary) Examine unclaimed wages
Pay-roll summary, Relevant ledgers data Employee register. rate,
Job
Schedule of unclaimed wages
card,
CA. Nitin Gupta
Rathore Institute
Travelling Exp Examine cash book
Cash book Examine standard form for Standard form for claiming claiming reimbursement reimbursement Examine Director’s travel rule AoA Examine relevant documents Ticket of mode of transport used, Hotel bill.
Custom Duties
Examine cash book
Cash book
Examine Bill of Entry Bill of Entry Commission paid to clearing and Agreement with agent forwarding agent. Examine rate of duty Custom act and Custom tariff act Examine duty paid Acknowledgement from Custom department Examine provisional assessment Provisional assessment order (In case of any dispute) Verify the claim of duty draw back
Excise Duties
Examine rate of duties Examine payment of duty
Remuneration paid to Directors
Examine the entitlement
AoA
Examine legal provision Examine relevant documents
309(3) (4), 309(2), 198, 310 Agreement, Attendance Bank Statement
Central excise tariff act. Challan, Personal ledger account (PLA) Examine cash book Cash book Ensure proper provisioning of Profit & Loss account goods not released Ensure CENVAT credit has been adjusted while claiming depreciation on fixed assets.
record,
advertisement Schedule / Register Advertisement Obtain schedule/register expenses Examine advertisement contract Examine statement of accounts Vouch the payment
Advertisement contract Statement received from agency Bank Statement
CA. Nitin Gupta
Rathore Institute Examine proof of advertisement
Copy /Video clip/Audio clip of advertisement.
It should be as per the object of the entity
Payment of Income Tax
Retirement gratuity
Examine Cash book
Cash book
Examine receipt of challan Examine documents
Challan Assessment order, Demand order, Ledger
Ascertain the requirement to pay
Legal provision of gratuity, Contract /Agreement with employee
Examine service contract Examine the validity of the basis on which gratuity is payable to the employee Recomputation Ensure compliance with AS-15
Preliminary expenses
Examine nature of preliminary expenses. (Registration fee, Cost of printing of documents, Stamp Duty). Ensure that other expenses are not included in it, like Underwriting Commission, Brokerage. Disclosure of preliminary exp in Prospectus prospectus Examine Board Resolution Minutes of BM
Research & development expenses
Examine R & D activity relates to MoA, AoA, BoD resolution business of the entity Examine Cash Book Examine compliance with AS-26 Ascertain nature of R & D work, it should be relevant to entity’s object. Examine Board Resolution authorizing R &D. Examine these are considered while provisioning of Income Tax.
Cash Book Examine MoA (Object clause)
Minutes of BM Computation of Taxable income as deduction is available for R & D exp.
CA. Nitin Gupta
Rathore Institute
OUR PAST RESULTS OF AUDITING & ASSURANCE NAME RICHA SHARMA
MARKS 76 (ROLL NO 309097) 41ST RANK
NAME
MARKS
AJMER DIN
64 (ROLL NO229372)
PUJA SINE
64
ANISHA
75 (ROLL NO-195101)
NEHA JAIN
64
PRADEEP KUMAR
74 (ROLL NO-256971)
RISHABH GAUR
63
YOGENDER BANSAL
73 (ROLL NO-349507)
NITIN JAIN
63
MAYANK GOEL
72 (ROLL NO-238011)
AKSHAY JAIN
62 (ROLL NO237763)
LAKSHAY JAIN
72 (ROLL NO-355600)
PRAVESH PANGENI
61
SUNIL BUDATHOKI
71(ROLL NO-357503)
DHRUV KANT
61 (ROLL NO232062)
ANOOP KANSAL
70
GAURAV SAXENA
61 (ROLL NO407917)
SIDDARTH KUMAR
70
GAURANG KAPOOR
61(ROLL NO-302323)
JAI PRAKASH SHAH
70
NEHA MISHRA
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HIMANSHU SRIVASTAV
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SWATI SINHA
60
SUJIT KUMAR TULSI GHIMIRE
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HIMANSHU GUPTA ANUJ AGARWAL
60 (Roll No-408570) 60
SANDEEP MALHOTRA
69
ANSHU RAI
60
RAJ KUMAR
69
DHEERAJ SHARMA
60
SAURABH BANSAL
68 (ROLL NO-240856) 13th Rank
BINOD PARAJULI
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RANJIT ADHIKARI
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SHILPI JAIN
60 (Roll No-362503)
PARTH AGARWAL
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TARUNA
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MANISH DWIVEDI
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RUPESH GUPTA
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TANIKA NARANG
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UJWAL TIMSILNA
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ANUPAM SURYA
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YASH GUPTA
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ANKIT BHATIYA
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PRADEEP KUMAR
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MOHIT SATIJA
67
RISHBH MISHRA
59
PIYUSH JAIN
67 (ROLL NO-246505)
AKSHAT RASTOGI
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ANKUR Gupta
66
NIKHIL JOSHI
58
SANTOSH GYAWALI
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HARCHIT SANAN
57
NITIKA GUPTA
65 (ROLL NO-246888)
SANDEEP CHATTARJI
57
PRAMOD POUDEL
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HARSHI GUPTA
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SUMIT
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DEEPAK SINGH
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ZEENA LAGE
64
AAKASH SRIVASTAV
56(ROLL NO362703)
MUKESH LUMAR
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Gaurav Arora
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Anushk Kapoor
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GURPREET SINGH
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