Examples of Audit Program

There are many audit examples like audit program for bank, audit program for sale, management, cash, and sale or purchase return, etc. Some of the detailed examples are:

Audit Program for Sale Return:

The Audit Program reviews the receiving of sale from customers to the payment receiving against the generated sale invoice. It also checks the process is fair or not. It checks stock valuation and doubtful debts. Indirect Taxation services like VAT/CST and service taxes apply to the sales. The credit notes need approval.

It investigates accounting entries for payment received, interest elements and unrealized profit in case of a sale made on the hire-purchase system.

Audit Program for Purchase/Purchase Return

This Audit Program for Purchase/Purchase Return checks and review the complete accounting system from the issuance of purchase orders from suppliers to the payment to suppliers against a purchase invoice. The slips of purchase orders are requisition slips checked according to the department and are authorized.

It checks the record completely with the purchase bills, and investigate stock register, and the return note for the purchase return. It reviews the Indirect Taxation entries made on the cost of purchase or Tax credit account, or VAT/CST or service taxes applicable.

Audit Program for Cash:

The Audit Program for Cash/Bank involves the review and check the posting and the balance sheet of Cashbook is maintained. It checks the cash receipt with cash book, and cash payment voucher with proper supporting bills. It ensures the authorization of cash payments.

It checks the calculation made regarding cheque/draft received, the cash withdrawal entries with the bank statements and all the entries in the cash book.

It ensures what amount is directly deposited into the bank by parties and check bank reconciliation, and physically verify the cash.

Audit Program for Salary/Wages:

The Audit Program for Salary reviews the Collect organization chart and list of officers and the authorization of the list of employees with salary. It investigates the contracts signed by employers, and compare the company’s expense amount with the authorized salary of employees.

Collection of information about a stock option and scanning of the stock register, bonus plans or other incentives given to employees. The stock issue record about issuance or reservation of shares to employees.

It reviews wages, incentives, rewards, and compensation, etc. with the basic confirmation. It also checks and reviews legal formalities applicable to an organization such as E.S.I/ TDS etc.

 

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