ABHINANDAN JAIN (CA Student) (886 Points)
18 September 2011I want to know whether Cash Vouching or Bank book vouching will come under Internal Auditing.....?
If not then it will come under which head or which type of auditing ....?
ashish gupta
( student)
(1922 Points)
Replied 18 September 2011
Cash and bank verification is a part of audit.
The scope of internal auditing is defined by management. If they cover then it has to be done
Prakash
(Chartered Accountant)
(560 Points)
Replied 18 September 2011
Internal Audit Covers Everything, Ofcourse Scope defined by Management
In real it covers all accounting and Non accounting areas too
CA Siddhartha Bhardwaj
(Proprietor at Siddhartha Bhardwaj & Associates Chartered Accountants)
(33456 Points)
Replied 19 September 2011
Yes. cash vouching is also a part of internal audit. The internal auditor should verify that the cash paymnets have been authorized. He should also verify that the vouchers are supported by proper bills. Further, the auditor should also check whether revenue stamps have been affixed on paymnets exceeding Rs. 5,000/-.
Also, comliance with Section 40A(3) & Section 40A(3A) should be checked to ensure that payments exceeding Rs. 20,000/- have not been made.
Ateeq
(CA - Final)
(218 Points)
Replied 19 September 2011
I agree with ashish,
If it forms part of your audit scope then you to verify otherwise you are nowhere obliged to do so, if the same does not forms part of your audit scope.
CAclubindia
