The following are the audit steps to audit/vouch/verify money received from the sales proceeds of scraps or junk materials:
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Sale Proceeds of Scraps or Junk Materials
1 Review the internal control on scraps/junk materials, as regards its generation, storage and disposal 2 Ascertain whether the reasonable records are being maintained for the sale and disposal of scraps/ junk materials 3 Review the production and cost records for the determination of the extent of junk materials that may arise in a given period 4 Compare the income from the sale of scraps/junk materials with the corresponding figures of the receding year. 5 Check the rates at which different types of scraps/junk materials have been sold and compare the same with the rates that prevailed in the preceding year. 6 See that all scraps/junk materials sold have been billed and check the calculations on the invoices 7 Ensure that there exists a proper procedure to identify the scraps/junk materials and good quality material is not mixed up with it. 8 Make an overall assessment of the value of the realization from the sale of scraps/junk materials as to its reasonableness. 9 Ensure that proper accounting has been done for it.
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