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Staff advances

Souvik Kumar Ghosh (CA Final) (1368 Points)

09 December 2011

What aspects are to checked while verifying advances given to staff?

Regards

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satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 09 December 2011

Verify the following 1. Control Procedure of issuing advances i.e. whether their exists a approval of Board or higher authorities. 2. type of advances such as advances for a) expenses ,b)festival advances, c)marriage or other advances. 3. verify the mode of payment i.e. cash or cheque. 4. verify the authority issuing the advance. 5. verify whether their is involvement of any director etc. 6. party to whom the money is advance. 7. verify whether the provisions of sections 2(22)(e) of income tax 1961, might be attracted. 8.whether it is in nature of loan. 9. Terms and conditions of repayment. 10. Recovery procedure of such advances. 11. if any advance is pending for long period, procedure for recovery and action to be taken up. this might do...

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