You can consider this list to get some insight on how to vouch for the production incentives paid to workers:

(i) The auditor should trace the total production incentive paid to workers from Statement of Profit and Loss to prime records/division wise/dept wise records.

(ii) The auditor should get the details of incentive scheme from the management and see that it is approved and updated by a competent authority.

(iii) The auditor should check the production figures from independent source and should correlate them with the incentive payment working computed by the accounts department.

(iv) He should check list of payment and also acquitted disbursement slips of select departments/periods for scrutiny of various data generated in the fields for their accuracy and completeness.

(v) The auditor should make an overall analytical procedure of ensuring the expense booked is commensurate in quantum with statistical data on production and strength of workers.