Bill receivable book:
At the time of vouching the bill receivable book, auditor should take the following steps.
1. Verifying of balance:
The auditor should verify the balance of the bills receivable with the bills in hand and the bills not over due.
2. Verify the posting:
Auditor should verify or check the posting of bills receivable in the book.
3. Check the proceeds:
Auditor should trace the carryon or proceeds of matured and discounted bills which have been paid or discounted through cash book/bank book.
4. Checking of bank certificate:
Auditor should check the certificate acquired from the bank for the collections of the bills sent to the bank.
5. General checking :
Auditor is responsible to check the casts, cross casts, and carry forwards.
Bills payable book:
The auditor when vouching the bills payable book will perform the following work.
1. Checking against cashbook:
Auditor should verify or check the bills paid during the period and compare it with the cashbook and bills returned.
2. Checking of bills not matured:
Auditor should responsible to check the total bills not matured and should see that these should agree with the credit balance on the bills payable account in the ledger.
3. General checking:
Auditor should check the pasting of the bills payable. He should also check the casts, cross costs and carry forwards.
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