Audit Procedures Or How To Audit/Vouch/ Verify Receipts Of Cash Sales Proceeds

The following are the audit steps to audit/vouch/verify the receipts of cash proceeds:

Receipts of Cash Sales


  1.       Examining the system of internal checks/controls pertaining to proceeds from cash sales to ensure no loop holes pertaining on omission of cash sales and prompt banking into the bank
  2.       Ascertain the practice followed in the matter of issuing cash memos or cash sales bills for example cash sales memo/cash bills must be in number in sequence, person able to raise such cash bills and cash sales bills are strictly meant for cash purposes ( not even one day owing, etc)
  3.       Verify cash sales with carbon copies of cash memos. Trace cash memos into cash sales summary book, if maintained, particularly when sales are heavy and subsequent tracing into cash book from the totals of the summary book
  4.       Ensure that the dates of cash memos/cash sales bills tally with those of their entry in the cash book.
  5.       Examine any original copy or cash memo which is cancelled since misappropriation can be possible.
  6.       Check daily total entered in cash book with the till rolls where automatic cash registers are used
  7.      Ensure prompt bank in of the cash sales proceeds
  8.      Ensure that they are properly posted and classified in the ledger

Refer to MORE ARTICLES on Internal Audits 





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