Objects of Cash Book Vouching
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OBJECTS OF CASH BOOK VOUCHING :-
Following are the important objects of cash book vouching :
1. To ensure that all the receipts and payments have been properly recorded.
2. To verify about the cash in hand and at the bank.
3. To know that all receipts are accounted for.
4. To verify that no fraudulent have been made.
VOUCHING THE RECEIPTS SIDE EXAMINATION OF INTERNAL SYSTEM :-
In case of receipts side the auditor has to depend upon the internal checks and external documentary evidence. He should pay special attention on the weak points of the internal check system.
1. Compare Counter Foil With Cash Book :-
The auditor check the received cash with the counter foil. He should also verify that unused receipt books are kept under, lock and key or not.
2. Sales Of Assets :-
The auditor should check the money receive from the sale of assets and vouch it with reference to the correspondence of contract and otherreliable evidence.
3. Terms Of Discount :-
Auditor should verify about the terms and conditions on which discounts are given to the debtors. He should also test a few items on their base.
4. Receipt Of Interest :-
Auditor should also verify that all the due interests on loan have been received or not.
5. Receipt Of Rent :-
Rent received should be vouched with the rent agreement and counter foil receipts.
6. Cash Sale :-
In this regard auditor should compare the daily sale statement of cashier and salesman with the bank statement.
7. Verify Commissions :-
Auditor should check the account of commission with the accounts of the parties from whom commission has been received. The rate of commission and agreement must be checked.
8. Profit From Investment :-
Auditor should touched the profit from the investment with the counter of dividend warrants and financial journals.