Audit
What important points to be check while auditing ?
1.New Sales Order – https://mlgassociates.in/if-you-are-doing-your-sales-order-audit-correctly (Click and Read)
2.New Customer – https://mlgassociates.in/new-customer-creation(Click and Read)
3.New HSN/SAC code and Recording Gate Outs – https://mlgassociates.in/new-hsc-sac-code-gate-out-record(Click and Read)
4.Good’s Reach Record –https://mlgassociates.in/youtube-audit-of-goods-in-transit(Click and Read)
5.Customer’s Payment Advice & E-way Bill Audit- https://mlgassociates.in/youtube-audit-of-customer-payment-advice-e-way-bills(Click and Read)
Now here we are adding some more small yet important new points in this.
Bill to Ship to Shipment
Generally manufacturing industries & B2B suppliers doesn’t face these kind of shipments but packaging industries sometimes gets bill to ship to shipment when they have to Bill to head office and ship to is made to different contractors.
What point to be checked while auditing ‘Bill to Ship to‘ Invoices ?
Place of Supply should be on Bill to basis not on ship to basis.
Signature on the Invoice
Service Invoice
Any New Service invoice entered in this month or not ?
Proper SoP is followed or not ?
Inter-unit Head office expense
inter unit head office expense has been made or not. As most of the companies has multiple units now they should also have inter unit billing as its necessary.
On A/c Receipts
You should know payment made by customer is against which bill. So that you can knock off the bills easily and you and your customer’s books should also gets reconcile easily.
Sale of inputs cleared ‘as such’
If you have cleared your inputs as such means you procure and arrange any material and then supply it to your vendor.
How you costs it ?
How you created its Ledger heads ?
Have you included it in your sale or purchase ?
What are your companies SoP for this ?
Sale of Old Machinery
If you sold any machine, car, truck, furniture or any other asset in this month ?
Invoice is made or not ? & GST had paid or not ?
Fixed Asset register has been updated or not ?
Scrap Sale
Other Sources of Income
Proper Accrual made?
Income from Job Work
Income from Services ?
Income from FDS ?
Income from Security Interest ?
Income Tax Refund ?-Payment made from government
Return from Customer
If return from customer is properly gets account for in your books or not ?
Again book the proper sale return.
Check what happens to customer return. Is it in inventory ?
Customer Debit note is received with material or not ?
Avoid double IRN.
Customer Reconciliation is also important once in 2 or 3 months of 80 % party.
For more information and clarity watch the video below by – Mr. Sangeet Kumar Gupta, F.C.A and Co-founder of Finsys .
Video Shot at Jaipur Marriot
What are the good things you must see during audit of the Sales Side. Debtors, Prices, Sale order and so many things.. Practical Ideas.