22 March 2009
when you are making payment to party, for better Internal control you should take receipts of the payment.
In case you don't have taken receipt (due to any reason), just show them the the ledger a/c with supporting BRS and still if not agrees, tell them to do external confirmation.
22 March 2009
Auditor is not raising any unjustifiable question. When a Cheque is account payee crossed, no doubt payment goes to the Payee as written on the Cheque but how can an Auditor satisfy himself that cheques were account payee crossed before issue. You can't expect auditor to rely solely on auditee's version
So it is desirable to collect receipt and place it on record to satisy the auditor. In a few cases, where receipts could not be collcected, auditor may like to opt for external confirmation but this could be done in a few cases but not all
CAclubindia
