For Vouching of cash verify whether any cash payments are exceeded Rs.20, 000/- ( Sec. 40A(3) ) and also check for credit balances in cash. Also go to surprise verification of cash.
1) Whether the vouchers are duly authorized and filed in order,and supported by external evidences? 2) Confirm that, the person approving the payment had the necessary authorization. (here better you obtain specimen signatures of authorized signatories from management and get whether there is any limit wise authorizations)
3) Whether the vouchers are numbered serially, and match with the accounting software 4) Whether contra entries for cash withdrawals and deposits are made and are they on the same date 5) Whether any cash payments exceed Rs.20000/- 6) If cash payments exceeding Rs.5000/- have been stamped? 7) Whether cash payment has been made to any party where in general only bank payments are made 8) Whether more than one payments have been made to a same person by cash in one single day 9) Check whether the expense accounted under the correct ledger head. 10) Accounting Period - Relates to which financial year.
23 December 2013
Dear sir , If There Is No External Evidence Supported, Then What Opinion Will I give??? & Also If There Is Revenue Stamp In Cash Payment More Than 5000??
26 December 2013
If there is no supporting bill for expence more than 100 you need to ask the compnay on what basis expence was authorised and enquire whether they have any management policy to approve for such payments . . yes revenue stamp required if cash payment more than 5000 on vouchers
CAclubindia
