Audit Procedures/How To Audit/Vouch/Verify Money Receipts From Royalties Received.

September 24th, 2008 Comments off
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The following are the audit steps to audit/vouch/verify the money receipts from royalties received:

Sales Proceeds From Royalties received

 

1       Verify the relevant contract and ascertain the provisions relating to the conditions of royalty such as rate, mode of calculation and due date.

2        Check the periodical statement received in respect of books printed, sold and stock lying at different locations.

3        Check the computation in the royalty statement and that any deduction or adjustment made from the royalty due is as per agreement conditions

4        Ensure that what’s are stated in the agreement is what the company has received. Also check the supports and bank statement to ensure actual receipts of such royalties

5        Ensure the correct posting and classification of the income otherwise profit is understated.

 

 

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Financial Accounting

 
 

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