How The Auditor Perform His Duty Of Verifying The Book Of Business Records?
During the auditor’s evaluation of the sale process, all the sales details should be verified with the statements of the salesman of the organization and respective reconciliation must be made with the book of cash received. Also, the auditor has to ensure that he checks the corresponding document suiting to the situation.
- The sale or the return day book has to be definitely examined for the manner of accounting.
- Cross check the real good movements from the dispatch center register with that of the goods going out recording book.
- It is necessary to take note of the approval period for these various goods and the time is taken by these to reach the hands of the customers.
- Also, ensure if all the returned items were properly recorded in the day book.
- The order book or the detailed confirmation book has to be verified on the basis of confirming the selling of goods or those held by the customers back for returning.
- Verify the sales register and check the case if
- Approval is obtained from the concerned party
- Crypto VIP Club traded goods are received by the customer team
- Even the auditor has to ensure if the approval gets expired and the goods have not been returned.
- Comparing the stock registers and the statements.
- All the closing stocks including those granted with the period of approval for the customers have not expired.
- Further, all the goods duly returned by the customers are registered with the validity period.
While considering the case of consignment sales,
- The consignment agreement has to evaluate for the following conditions.
- About the commission due, the payment mode, adjustment made if any and so on.
- The risk associated with the debts and the dealings with the consignee.
- The reimbursement made if any for meeting the consignment expenses.
- The goods movement recording register.Need to verify the details of the despatched goods with regard to the performance invoice, the allocation book and other acknowledgment data and documents necessary for transportation.
- Considering the Form F. This covers all those goods sold out through the agents. This includes the inter-state trade or commerce and verification is required regarding the receiving of the form F certified under the CST Act.
- Regarding the consignment account. If the goods are above the consignment cost, then necessary adjustments are to be made regarding the load removal towards the year-end and this needs to be verified by the auditor.