Dear CAclub Members,
I have a small firm and track all expenses meticulously. Even the smallest Expense bills (e.g., bus tickets) are carefully filed Date-wise. The bills are then entered in my accounting software.
During auditing the CA asked me to write the Journal Numbers generated by the Accounting software for the Expense Entries on each Bill! This activity will be very very time consuming and not sustainable in the long term. I have requested the Auditor to query me for any Expense Journal Entry and I can present the corresponding Bill out from the File, if he cannot find it by himself (i assume this could be the only reason why he wants this whole exercise to be undertaken).
But he says this is an Accounting Norm and is mandatory. Could any of you please shed light on this. Should Journal Entries genreated by the Accounting Software be written on the Expense Bill? Is there an Accounting Standard that mandates this?
Thank You in advance.
Chirag.
CAclubindia
