The following are the audit steps to audit/vouch/verify the client’s advertising expenses:
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Audit For Payment Of Advertisement Expenses
- Check that the advertisement expenses have been properly allocated whether to Capital, deferred revenue or revenue as the case may be.
- Examine the supporting documents to ensure that the expenses relates to the client’s business.
- Review and examination of the complete list of media of advertisement indicating the dates, location, timing etc., along with the amounts paid in respect of each category.
- Examination of the receipts of the amounts paid
- Reviewing the contracts with the different agencies and ensuring the billing conforms to the term and conditions specified therein
- Ensuring that all such outstanding expenses have been properly accounted for otherwise any material omission will results in overstatement of profits.
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