Cash Vouchers

7/25/2019 Cash Vouchers

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Cash Vouchers \ Bank Vouchers

Check authorization of Cash Vouchers \ Bank Vouchers by a responsible

person.

Check supporting Bills / Invoices

Check the correctness of the accounting head epense / inco!e

Check for cash receipts signature /ackno"ledge!ent of cash recd.

Check that all the relevant colu!ns of the Cash/ bank vouchers have been

properly #lled in.

Check that all the supportings to the Vouchers are crossed as cancelled after

the pay!ent.

Check that pay!ents are !ade only against original supportings.

$urchase Vouchers

Check authorization of $urchase Vouchers by a responsible person.

Check the $urchase Voucher "ith the supporting docu!ents like Bill / Invoice

and the %oods &eceived 'ote(%&').

Check "hether the rates given in the purchase invoices are as per thepurchase *rders raised/a!end!ents to the $urchase *rders/ approved by an

appropriate authority.

Check "hether pay!ent has been !ade/Bill passed for re+ected ,uantity of

!aterial as per the %&&.


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Check "hether a proper accounting head - epense has been debited.

Check that all the relevant colu!ns of the $urchase Vouchers have been

properly #lled in.

Check that the $V is passed as per the ter!s given in the $urchase *rders.

Check that the purchase voucher is prepared only in respect of original Bills /

Invoices.

$hotocopies of invoices \ duplicate invoices should not be passed.

Check that the Bills / invoices are passed strictly as per the $* ter!s.

ournal Vouchers

Check authorization of ournal Vouchers by a responsible person.

Check the ournal vouchers "ith supporting Bills / Invoices /docu!ents.

Check that supporting docu!ents are duly approved by an appropriate

authority.

Check the correctness of the accounting head - debit / credit.

Check that all the relevant colu!ns of the +ournal vouchers have been

properly #lled in.

In case of contractors bills check that bills sub!itted by the contractors are

supported by the ork *rders issued in advance to the contractors. 'o bill should

be passed unless supported by a/ * and the value of the Bill should be in


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agree!ent "ith the * prepared. Check that the ork *rders are prepared in

advance before the start of the "ork.

Check that the bills of the contractors are duly approved and certi#ed for

pay!ent by the person responsible for getting the "ork done i.e the user. 0ll thebills !ust have 10pproval2 for pay!ent in "riting by the user on the face of the bill.

Check that all the supporting bills / invoices to a +ournal voucher are approved

/ certi#ed for pay!ent by the 3ser 4epart!ent. 5he user 4epart!ent should

speci#cally put a re!ark on the bill for approval\ pay!ent.

In case of contract +obs relating to labour supply the bills are to be supported

by attendance sheets duly certi#ed by the 5i!e *6ce.

In case of transporters bills - check the bills "ith the agreed rates and

receipted copies of consign!ent notes.

Check the !easure!ent books in case of bills for civil "ork and ensure that

the 7easure!ent books are signed and checked by the 8ngineer in charge of the

ork.

In case of running and #nal bills for civil "ork check that the civil engineer

has checked and veri#ed the !easure!ents and entries of all running and #nal bills

are !ade in the 7easure!ent Books.

0dvance to 8!ployees

Check the 5rial balance in respect of 0dvance to e!ployees to ascertain the

a!ount outstanding in the na!e of each e!ployee. 9ind out the date since "hen

the advance is outstanding to be settled and !ake a list if e!ployees advancesthat have not been settled for a long period.

8nsure that no further advance is given to an e!ployee unless the previous

outstanding advance is cleared by hi!.


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0dvance to an e!ployee !ay be to"ards - 5ravel / *6cial "ork\ loan or a

salary advance. 8nsure that the recovery is !ade fro! the salary of the e!ployee

"hen the advance taken by the e!ployee is not settled by hi! "ithin a reasonable

period.

9urther check that the recovery of install!ents in respect of loan / salary

advance is !ade correctly on !onthly basis fro! the salary of the e!ployees.

Check and !ake a list of e!ployees "ho have left the co!pany and their full

and #nal settle!ents have not been !ade but debit balances are still appearing in

their na!es in the 0dvance to e!ployees account.

Con#r!ation of Balances

Con#r!ation of balances "ith the banks \ :ending institutions should be

obtained on a !onthly basis for the purpose of preparation of bank reconciliation

state!ents.

Con#r!ation of balances "ith the Creditors / 4ebitors should be obtained on

a si !onthly basis. 5he balances in the Creditors\ 4ebtors :edger account should

also be reconciled "ith the balances as per the party;s books on a si !onthly

basis.

4ebtors :edger 5rial Balance \ 4ebtors :edger account

Check that the balance sho"n by the 4ebtors :edger 5rial balance agrees

"ith the balance sho"n by the 4ebtors control account in the %eneral :edger 5rial

balance.

Check the 0ge"ise analysis of


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Check the debtors accounts "here legal cases have been #led / are to be #led

and ascertain the progress in the legal cases.

Carry out a scrutiny of various 4ebtors 0ccount in the debtors ledger and

check for the follo"ing =-

o 7atch the 4ebit and Credit entries individually.

o %ive the break up of the closing balance - Invoice "ise.

o 8nsure that there are no such cases "here the pay!ents have been received for

later bills and the earlier invoiced are unpaid.

o %ive a break up of the closing balance as above in (b) including the details of

any debits on account of debit notes raised on the parties.

o $repare a list of 4ebtors account sho"ing closing credit balances.

o 5ally each debit "ith a corresponding credit to locate any under pay!ent / over

pay!ent for any invoices.

Creditors :edger 5rial Balance/Creditors :edger 0ccount

Check that the balance sho"n by the Creditors :edger 5rial Balance agrees

"ith the balance sho"n by the Creditors control account in the %eneral ledger trial

balance.

Check the creditors account that are outstanding to be paid since long(unclai!ed Creditors) and that can be considered for a "rite back in the books of

account.

Carry out a scrutiny of various Creditors account in the creditors ledger and

check for the follo"ing.


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o 7atch the Credit and 4ebit entries correspondingly.

o %ive the break up of the closing balance Invoice "ise.

o 8nsure that there are no such cases "hen the pay!ents have been !ade for

later invoices and the earlier bills are unpaid.

o %ive a break up of the closing balance as above in i (b) including the details of

any credits on account of credit notes raised on the party.

o $repare a list of creditors account sho"ing closing debit balances along"ith thereasons for debit balances. Co!!ents or details should be taken fro! the auditee

in respect of every single debit balance.

o 5ally each credit "ith a corresponding debit to locate any over pay!ent /under

pay!ent for any invoice.

Check all the Creditors :edger 5rial balance as given belo" for above details.

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8cise V/s 0ccounts &econciliation

8nsure that a reconciliation state!ent is prepared on a !onthly basis to

reconcile the !odvat / Cenvat balance in the ecise "ith the accounts balances.

Check if any old pending entry is appearing in the reconciliation state!ent.

Check the unreconciled / reconciled di>erence in the balances sho"n by the

ecise records and the accounts records.

54er / pro#le / eperience/ technical

co!petence / reco!!endation of architects 8ngineers etc.

o Check "hether the $urchase / ork *rder "ere issued before the start of the

"ork by the parties. Con#r!atory orders should not be issued ecept under special

circu!stances.

o Check "hether the Co!parative state!ents are duly approved and dated by a

co!petent authority.

o 8nsure that the variation bet"een the actual Fuantity / Value and the Fuantity /Value as per the $* / * does not eceed K L. 5he Fty / Value as given in the

$* / * should be as accurate and as possible and all "ork should be esti!ated

and planned in advance and provided for in the $* / *. 5he a!end!ents to the

$* / * should be issued in special cases only. 5he cases of a!end!ent orders

being issued for an increase in the scope of "ork should be !ini!u! and the full

scope of "ork / activities should be esti!ated / calculated in advance.

o 8nsure that the a!end!ents to $* / * are issued before the start of the

etended "ork/scope of activities and not after the co!pletion of "ork.

Colony upkeep / 7aintenance

o Check "hether the 0d!inistration 4epart!ent has prepared a list of 9ied 0ssets

provided to the e!ployees at their residential pre!ises.

o Check "hether an ackno"ledge!ent has been taken in the list of 90 provided to

the e!ployees fro! the e!ployees. 5he signatures of concerned e!ployees should


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be taken in the list of 90 as a token of their acceptance to"ards having received the

90.

o 5he 0d!inistration 4epart!ent should carry out a physical veri#cation of 90 at

the residential pre!ises of the e!ployees and co!pare it "ith the list. 5he

discrepancies if any bet"een the physical balances and the book balances should

be en,uired into.

o 5he 0d!inistration 4epart!ent should !aintain a &egister / book "herein all the

co!plaints received fro! the colony residing e!ployees should be entered into

serially.

5he speci#c nature of the co!plaint should also be entered "hether

8lectrical / 7echanical / Civil / 8lectronics etc along "ith the date / ti!e of lodging

the co!plaint by the e!ployee.


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o 8nsure that a separate !anual register is !aintained for the inco!ing and

outgoing correspondence.

o Check "hether all the relevant infor!ation is recorded in the inco!ing /

outgoing registers.

o 5he registers should be kept updated at all ti!es and entries should be !ade ona day to day basis.

o 0 sta!p / seal should be put on the cover of every inco!ing correspondence

indicating the date of receipt of the docu!ent / correspondence.

o 0 separate record/ register should be kept for docu!ents / correspondence sent

through the &egistered post. ( copies of &egistry receipts should be preserved).

o 0 proper record should be kept of $ostage sta!ps.

o In case of 9ranking !achine - check the use and the balance a!ount at the end

of the day.

N $rev 'et O

Co!!ents

Internal Audit Checklist of Scrap *aterial

SCRAP MATERIAL

nsure that a separate space + scrap yard is earmarked for keepin the scrap material. 3he

scrap yard should ha%e an enclosure and a ate ith a lock and key.

nsure that a proper record is kept of receipts issues openin and the closin balances !uantity

of each item of scrap in the scrap yard
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Check that proper slips are kept at the point of eneration of scrap and at the recei%in end ie the

scrap yard. At the eneration point(s) the output + production + scrap eneration slip should be

made in 2 copies i%in details of the item of scrap and the 8ty of scrap.

3he eihment + measurement + countin can take place either at the point(s) of eneration or at

the scrap yard. 9oe%er the scrap eneration slip should contain the details of the !uantity. 3he

slips should ha%e a serial control and should be authorised by a responsible person. 3he scrap

yard should recei%e the material on the basis of slip and enter the receipt in the scrap reister.

:eihment should be carried out at the scrap yard if not already made at the production floor. 3he

eihment should be carried out in the presence of a person each from the scrap yard and the

production. 3hus the scrap yard entries for receipt of scrap should be made on the basis of

eneration slips only. 3he issues entries should be made on the basis of sales in%oices raised on

customers + issue slips for consumption ithin the plant.

It should be ensured that the entries in respect of receipts and issues in the Scrap Stock Reister

are made on the basis of eneration slips + Sales in%oices + issues slips.

3he eneration slips + Sales in%oices + issue slips should be authorised by a responsible person.

Scrap ;eneration points should be identified and a booklet of eneration slips ith a serial

control i%en at each eneration point. 3he scrap yard person should sin on one copy of the slip

as an acknoledement of ha%in recei%ed the scrap !ty as i%en in the slip and return the slip

back to the eneration point. 3he second copy of the slip is to be retained at the scrap yard.

0or sale of scrap ensure that a comparati%e chart of offers + !uotations is prepared and the Sales

order is made in the name of the best !uoted party. All the offers + !uotations should be properly

e%aluated.

Scrap sale should be effected on spot payment terms / cash + --s at the time of deli%ery. nsure

that full amount is collected from the customer before the material is alloed to be lifted.

nsure that Sales 3a< + e


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nsure proper countin + eihment + measurement of scrap at the Scrap eneration point(s) +

Scrap yard.

3he Scrap Stock Reister should be kept updated at all times.

A ate pass should be issued at the time of despatch of material from the Scrap =ard and the

ate pass should then be checked at the eersonnel ? 3ime,ffice

PERSONNEL & TIME OFFICE

,btain a list of sanctioned strenth / -epartment ise and compare ith the actual strenth of

the employees. ote the %ariation and comment upon the cases here the actual strenth of the

employees is more than the sanctioned strenth. Check appro%al for the eersonnel -epartment to check

hether @

o all the copies of certificates + testimonials ha%e been taken from the employees at

the time of oinin .

o omination in case of ;ratuity + >ension + >0 + superannuation etc ha%e been

collected from the employees
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o all the other documents like increment letters + promotion letters etc are properly

filed in the ser%ice files .

o Copies of appointment ad%ice + appointment letters + confirmation letters etc are kept

in the ser%ice files.

,btain a list of all the pendin leal cases bein handled by the >ersonnel -epartment. Check

the status of all the leal cases includin the date of neersonnel

-epartment should prepare a status report of pendin leal cases on a monthly basis.

nsure that the >ersonnel -epartment is takin due care in case of contract labour employed

by it to ensure that leal and statutory obliation like 0>S + >0 + SI are taken care of. 3he

>ersonnel -epartment should maintain proper attendance record in respect of the contract labour

and should obtain copies of monthly >0 + SI challans from the contractor .

Check that the %arious licenses like the 0actory license + license under the Contract labour

(abolition reulation ) act 15'6 + license for storae of inflammable and haardous chemicals etc.

are reneed in time.

nsure that the %arious pro%isions of industrial and labour las

like3he Apprentices Act + 0actories Act + >ayment of aes Act

+ *inimum aes Act etc. are duly taken care of.

nsure that proper attendance + lea%e records are maintained by the >ersonnel -epartment is

respect of all the orkmen + staff + officers+ manaers + hiher manaement.

Check the lea%e + attendance record of employees (reister +

punch card+ computeried attendance printouts) to ensure that there are no irreularities.

Comment on the irreularities. if any obser%ed .


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tea transport uniform production etc. 0urther check the %arious schemes linked to production +

output to ensure that the payment under %arious incenti%e schemes are made strictly as per the

laid don producti%ity linked + incenti%e scheme .

nsure that the system installed at %arious locations to mark the attendance(in+out) are orkin

properly and are i%in consistent results.

Check the record relatin to attendance + lea%e includin a cross %erification of data and ensure

that the methods and procedure for recordin of attendance + lea%e are sound and sufficient

internal controls eoint out the lacunae + eakness in the internal control system.

In case of producti%ity linked schemes ensure that there is a proper system to record and

measure the !uantity + !uality + output of each employee.

Check hether the consent letters ha%e been obtained from the State >ollution Control Boards in

respect of AIR + :A3R.

Cash Vouchers

Documents

Transcript of Cash Vouchers