Audit Procedures/ How to Audit/Vouch/Verify Money Receipts From Cash Proceeds Of Scraps Or Junk Materials

The following are the audit steps to audit/vouch/verify money received from the sales proceeds of scraps or junk materials:

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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