Vouching of sales book:
Auditor should analyze or examine the following points while vouching the sales books.
1. Internal check system:
Auditor should verify or check the working of internal control and test the few entries.
2. Execution of sales order:
He should examine the system of execution of sales order and be fully satisfied that the record of all the sales orders received is available for checking with the sales invoices.
3. Sales book:
It should be checked with carbon copy of the invoices, which should be canceled by a rubber stamp or initials by the auditor so that it may not be produced again in support of another entry.
4. Invoices:
i. Debtors name.
ii. Date & amount.
iii. Authority.
iv. Trade discount.
v. Authority for granting discount.
5. Duplicate invoices:
The responsibility of Auditor checks the entries in the sales book with the duplicate invoices.
6. Authority checking:
It should also be verified by the auditor that the invoices should be authorized by the responsible officer.
7. Comparison with order book:
Auditor should compare the sales book with the order received book and goods outward book. It will show that no fictitious sale of made.
8. Verification of year:
It should also be verified or checked by the auditor that all the entries made in the sales book belongs to the year under audit.
9. Forwarding contracts:
The forward contracts for the sale of goods must be inspected and their settlement should be verified.
10. Provisional sales invoices:
If any invoice is market provisional, the auditor should see that the relevant adjustments are made through the final sale invoices and incorporated in the book.
11. Insufficiently vouched sale invoice:
A list of all missing sale invoices should be made and handed over to the management for clearing the quires. Then the unclear queries should be reported to the management.
12. Casts postings:
The casts cross casts and the carry forwards of the sales book should be checked, Posting to general ledger.
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