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.
|
|
|