Audit Procedures Or How To Audit/Vouch/Verify Advances Given To Suppliers

The following are the audit steps to audit/vouch/verify the advances given by the company to its suppliers:

Advances given to suppliers

1 Vouch whether the suppliers are the vendors or the genuine suppliers. Obtain the list of suppliers of the entity if maintained

2 Check whether the suppliers are related parties. Verify the documents of the agreement or contract.

3 Check whether the goods have actually been received after the end of the period by tracing in the subsequent period

4 Verify whether proper authority approval in sanctioning advance payments to the suppliers was there.

5 Verify the internal controls in respect of the advances to the suppliers

6 At year end, seek direct confirmation from the suppliers who have these advances still outstanding.

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