Professional Documents
Culture Documents
In order to verify the bills receivable, the auditor should take the following
steps:
1. The bills receivable should be compared and counted with the actual bills
in hand at the date of balance sheet by examining the bills receivable book.
2. In case the bills have matured and honoured subsequent to the date of
the balance sheet but prior to the date of audit, he should vouch the cash
received as shown in the cash book or the bank pass book. Similarly, the bills
discounted after the date of balance sheet must be vouched with reference
to cash collection.
3. He should see that the bills are properly drawn, stamped and duly
accepted and they are not overdue. In case of the renewal of any bill, he
should examine the new bill with the old bill. Where the part of the original
bill has been paid he should vouch the cash received and see that a new bill
of the balance amount has been obtained.
4. Where the number of bills is large and they are usually kept with bankers
or agents for collection he should obtain a detailed certificate from them
and examine the same.
6. Bills which have been dishonoured before the date of the balance sheet
should not be included in the balance sheet as bills receivable in hand as
they are no longer assets. The acceptor, dishonouring the bill, should be
shown as debtor in the books of accounts.
The stock verifier goes to the godown and calls out the number and other
relevant particulars of the items of each class of goods and another clerk
enters these particulars in the stock sheet. Then two clerks of another batch
will check the stock-sheet.
The Stock-sheet will then be sent to a responsible officer who fills in the
rate of each item of goods at which they are to be valued. The work of
calculation is entrusted to a clerk who will calculate the value of each class
of goods and his work is then checked by a senior clerk. All those connected
with the stock-taking put their initials on the work done by them so that if
later on any mistake is found the concerned official may be held responsible
for the mistake. All stock-sheet are stand-by the general manager or partner
as the case may be.