How Can Auditor Cheek The Purchase Book Invoices?

It is highly essential that an efficient system of internal of internal cheek must be in force for the placing of an order, receipt of goods, checking of invoices etc in order to prevent the error and frauds and with a view to ensuring that liability is accounted for only in respect of such cases where goods were actually received.

The purchase book should be vouched with the invoice, bills or credit memos. The vouched documentary evidence should be cancelled by the rubber stamp or initials of the auditor so that it may not be produced again in support of another entry.
While checking the purchase invoices, special attention should be given to the following points;

1. It is made out in the name of the client.
2. The name of the creditor as given on the purchase invoice agrees with the purchase book.
3. The date of the purchase invoice falls within the financial period under audit.
4. The goods mentioned in the invoice are of a nature in which the business is carried on.

5. The trade discount (if any) is to be deducted and the net amount of the invoice is entered in the purchases book.
6. Any private account passed through the purchases book should be charged to the individual accounts.
7. It has properly imitated by those who had internally cheeked. Brief description of the internal checking carried out by the client's staff should also be given either on the back of the invoice or a separate sheet shoulfd being attached to it.

Add Comment

Report