How Should An Auditor Deal With Petty Cash And Travel Expenses Of A Company?
An effective auditing needs to evaluate almost all the financial features used by the business company exactly the way in the source which gives information all about automated trading robots. One such aspect is handling the petty cash expenses and the auditor must
- Identify the personnel managing the petty cash and ensure the top limit of the disbursement applicable through petty cash payment scheme.
- It is also a wise step to record the limit of the Impresting source along with knowing whether a regulatory body is allocated for making the petty cash payments that are verified by another internal control official.
- He needs to consider all the reconciliation statements prepared in terms of petty cash depending on the selling vouchers.
- Further, the cashbook detailing all the money transfers from the Imp system to petty cash must be read off for better understanding the status of the business payment strategies.
- Observe the vouchers and relate it with the other receipts, notices or bills signed by the receivers.
- Track all the castings of columns, their subtotal, and It is also advisable to view the postal and mail received and sent with regard to the petty cash issue. Check for any abnormal movements and obtain explanation regarding the same.
- See if any postings from the petty cash record have been listed into the standard head of the account.
- Take the chance to give a surprise visit to the company and verify the petty amount physically recorded on the specific date. This can review if the business terms and registrations represent a fair view.
- Inspect all the suspense vouchers produced by the company officials with respect to the business on money transactions and verify if they are all reversed within a particular period.
- Surprise reviews can also be done on the petty cash balance and can be compared with the markings made on the corresponding petty cash book.
Apart from this expense, a company needs to meet certain travel expenses to increase their business contact levels and meetings, to transfer assets and so on. So, the role of the auditor is to ensure that these traveling expenses claimed by its directors are truly based on the interest of the company business and these officials were entitled to get back this amount from the company account.
For this, the voucher of traveling should be produced and must contain the details like
- Name and designation of the official who is claiming the amount,
- Details of the journey,
- Travel fare with the right date and timings,
- Other expenses met during the journey.