Wocop

How to vouch for various cash receipts  Receipt side 1. Cash sales : In vouching for cash sales, the cash register should be fully checked with carbon copies of cash memos. Then, the auditor should verify the daily deposits of cash received in the bank dates of the cash and the date on which the receipts are recorded in the cash book must be the same. Where the cash memos are cancelled, all copies including the original copy duly cancelled should be kept in the book. Where a company has a discount policy, if more discount is allowed in a transaction it must be approved by a responsible officer. 2. Cash received from the debtors: The auditor should verify the amount received from debtors from the counterfoils or carbon copies of the receipt issued to the customers. All these receipts should be serially numbered. The amount should be entered in the cash book on the day when received. Discount allowed to customers should be authorized by a responsible officer. Sometimes correspondence...

Meaning:- Vouching is concerned with examining documentary evidence to ascertain the authenticity of entries in the books of accounts. In other words, it is an inspection by the auditor of evidence supporting the transactions made in the books. Vouching is a technique used by an auditor to judge the truth of entries appearing in the books of accounts. Some important definitions of vouching are: “Vouching means testing the truth of items appearing in the books of original entry.” – J.R. Batliboi “Vouching is an act of comparing entries in the books of accounts with documentary evidence in support thereof.” - Dicksee From the above definitions we can conclude that vouching is a technique in which an the auditor verifies authenticity and authority of transactions recorded in the books and on the basis of which he submits a report, indicating that accounts are correct, free from errors or fraud and complete. Objectives of Vouching :- 1. All the transactions which are connected with the bus...

#Reserve Bank of India is the central bank of the country and regulates the banking system of India. The structure of the banking system of India can be broadly divided into scheduled banks, non-scheduled banks and development banks. Banks that are included in the second schedule of the Reserve Bank of India Act, 1934 are considered to be Scheduled banks .  All scheduled banks enjoy the following facilities: Such a bank becomes eligible for debts/loans on bank rate from the RBI Such a bank automatically acquires the membership of a clearing house. All banks which are not included in the second section of the Reserve Bank of India Act, 1934 are Non-scheduled Banks. They are not eligible to borrow from the RBI for normal banking purposes except for emergencies. Scheduled banks are further divided into commercial and cooperative banks. 1.Commercial Banks The institutions that accept deposits from the general public and advance loans with the purpose of earning profits are known as C...

  Nationalization of banks means to take the banks under govt. Undertaking. Banks after nationalization come directly under Banking Regulation act 1949. RBI became the first nationalized bank in India in July 1949. RBI later became the regulatory authority for banking in India. Further 14 other banks were nationalized in July 1949. Bank of India, PNB and many other were part of this nationalisation. While the next phase of nationalisation saw 6 other commercial  banks nationalised in 1980. These include Vijaya bank, Corporation bank etc. Objectives of Nationalization To eliminate concentration of economic power in few hands To diversify the flow of bank credit towards the priority sector consisting of agriculture and allied activities, small scale industries and small businesses. To foster a new class of entrepreneur so as to create, sustain and accelerate economic growth. To professionalize bank managements. To impart adequate training as also reasonable terms of service to b...

Before the commencement of a new audit, the auditor should go through the minutes of the directors and note down the important decisions. The auditor should prepare himself before the commencement of a new audit; he should consider the following points: 1.Appointment First of all, the auditor should confirm his appointment letter that it is in order from every respect and fulfilling all its legal requirements. 2.List of Books of Account The auditor should obtain a list of all the books of account and should see that all books have been kept in accordance with the company ordinance. 3.Legal Documents The auditor should take a copy of the legal documents of the company and should study them carefully before the commencement of the audit. Such documents may be memorandum and articles of association, prospectus and contract with vendors etc. 4.Nature of Audit The auditor should know the nature of the audit so that he may prepare himself accordingly. 5.System of internal Audit The auditor s...

  Banking is an industry that handles cash credit and other financial transactions. Banks provide a safe place to store extra cash and credit. Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn profit. Sec. 5(b) of The Banking Companies Act of 1949 , defines a banking company as “accepting for the purpose of lending or investment of deposit money from the public, repayable on demand or otherwise and withdrawable by cheque, drafts, order or otherwise”. According to Walter Leaf , “ A bank is a person or corporation which holds itself out to receive from the public, deposits payable on demand by cheque.” Thus, banks are a business of accepting deposits and lending money. It is carried out by financial intermediaries, which performs the function of safeguarding deposits and providing loans to the public. Functions of Commercial Banks:   Modern commercial bank...