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Please explain me how would I verify the advanc...

Please explain me how would I verify the advances made to suppliers, as appearing in the books of...

Please explain me how would I verify the advances made to suppliers, as appearing in the books of accounts of my client's company"

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Chiranjibi Chapagain Mar. 12, 2018

You can verify the advances made to the suppliers by considering the following points:

  • Examine the bought ledgers to ascertain the debit balance of trade payables and trace the corresponding entry to the cash/bank book.
  • Obtain a schedule of advances to suppliers and verify it with balances in bought ledger.
  • Assess the possibility of delivery of goods against advance payment and examine whether provisioning is required.
  • Obtain/resort to direct confirmation procedure.
  • Ensure proper classification in the balance sheet as per requirement of Schedule III to the Companies Act, 2013.
  • Pay special attention to long outstanding advances and enquire about the reason thereof.

Please explain me how would I verify the advances made to suppliers, as appearing in the books of accounts of my client's company"

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