In: Accounting
9) What security checks should be applied to cheques or vouchers? List and describe five checks.
10) List and describe (50–80 words) the key features of three reports.
Solution:
9) The five checks for security check of cheques and vouchers are:
The date and amount of the cheque should be checked and verified to confirm the amount. Whether the cheque is postdated or predated, will be determined by checking the date.
The signature on the cheque should be verified to confirm the cheque, otherwise the cheque will be bounced.
The supporting evidences should be examined at the time of checking the voucher. Whether the expenses written on the voucher is matched with the evidences or not.
Whether the date and singed properly done on the voucher by the authorized persons or not should be verified.
The serial no of the voucher should be verified and if there is any discrepancy on the same then the details examination is required.
10) List and Key features of the three reports:
I. Auditor Report: It presents that whether the financial statement are true and fair or not.
II. Board Report: It represents the financial performance and position of the business.
III. Internal Audit Report: It represents the efficiency and effectiveness of the internal control and internal management.