I am currently on an interim audit of an auto mobile dealership company, where they give free gifts to the customers ( Neck rest in car for eg.) But no entry was passes all these years and now while conducting stock audit of the accessories division , i have came across various difference between the actual stock and the data shown by TALLY ERP9 . My problem is what should i do ? Can i pass back dated entries in 2016 ? But it would affect the opening and closing balances. Please help!
2 Replies
CA Srujann kumar Reddy
(Asst Manager(Internal audit))
(1679 Points)
Replied 07 March 2018
I Guess as this is an expenditure, consider the same as prior period item and account for as per AS 5
Anjan Sen
(2 Points)
Replied 19 March 2018
Are you sure the mismatch in stock physically present & as per books relates to 2016?? If yes then treat it as prior period item, else charge it off in the current year.
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