CHECKLIST FOR CASH VOUCHING
CHECKLIST FOR CASH VOUCHING (PAYMENTS)
INTRODUCTION: Cash Voucher mainly comprises of reimbursements claim by parties related to the company (employees, directors etc.) and also other payment made in cash. The points which are to be kept in mind while doing cash vouching are as:
1. Decide materiality level. Vouchers more than materiality level are to be examined. Mainly it varies from 5000 to 10000.
2. Check internal control system over cash transactions & authorization levels for cash transaction.
3. Mark the cash payment more than 20000 to a single party in a single day & 35000 in case of transporter of goods. These transactions aren’t allowed as business expense for tax purpose & these voucher numbers are to be saved & used during finalization of audit.
4. Check if the vouchers belong to the expense of the financial year pertaining to the audit & if not apply cut off procedure.
5. Check that the expense are under correct head of accounts.
6. Check if there is any party by which reverse charge is applicable. And if found, note down those party names & later check whether the company has paid service tax or not.
7. Borrow employee & director list to see that the person claiming reimbursement actually exists in company.
8. Borrow telephone/insurance charges/conveyance reimbursement policy to check the limit for cash reimbursement.
9. From the directors list (specified employee), note down the name of directors & head of account of reimbursement claimed by them. These are noted for the sake of perquisite value for tax purpose. For example, motor car facility (drivers salary, insurance charge, vehicle maintenance, repairs etc.), telephone expenses etc.
10. Mark the queries, note them down & ask them with person relating to the accounts of the company.
11. ADD
12. ADD
PREPARED BY
BIKAL POUDEL
DATE: 28.01.2014
INTRODUCTION: Cash Voucher mainly comprises of reimbursements claim by parties related to the company (employees, directors etc.) and also other payment made in cash. The points which are to be kept in mind while doing cash vouching are as:
1. Decide materiality level. Vouchers more than materiality level are to be examined. Mainly it varies from 5000 to 10000.
2. Check internal control system over cash transactions & authorization levels for cash transaction.
3. Mark the cash payment more than 20000 to a single party in a single day & 35000 in case of transporter of goods. These transactions aren’t allowed as business expense for tax purpose & these voucher numbers are to be saved & used during finalization of audit.
4. Check if the vouchers belong to the expense of the financial year pertaining to the audit & if not apply cut off procedure.
5. Check that the expense are under correct head of accounts.
6. Check if there is any party by which reverse charge is applicable. And if found, note down those party names & later check whether the company has paid service tax or not.
7. Borrow employee & director list to see that the person claiming reimbursement actually exists in company.
8. Borrow telephone/insurance charges/conveyance reimbursement policy to check the limit for cash reimbursement.
9. From the directors list (specified employee), note down the name of directors & head of account of reimbursement claimed by them. These are noted for the sake of perquisite value for tax purpose. For example, motor car facility (drivers salary, insurance charge, vehicle maintenance, repairs etc.), telephone expenses etc.
10. Mark the queries, note them down & ask them with person relating to the accounts of the company.
11. ADD
12. ADD
PREPARED BY
BIKAL POUDEL
DATE: 28.01.2014