What Steps Does An Auditor Take To Verify The Communication Process Of A Company?

What Steps Does An Auditor Take To Verify The Communication Process Of A Company?

The trendy use of mobile phones by the business officials makes it a hectic job for the auditor as he needs to verify all the mobile phone charges and the corresponding the records produced by this workforce that is paid off by the company. On the similar grounds, how the blockchain methodology works, read the source in order to enlighten your hungry mind.  Further, he has to ensure if

  • Any payment recoveries had been made by the employees if their calls and charges extended the permissible limits.
  • Additionally, he has to see if all the service tax credit notices and other related inputs issued by the telephone department are addressed in the name of the company or not.
  • Also, any liability with regard to FBI or the Fringe Benefits Tax on telephone bills has been correctly remitted to the corresponding authorizes after proper computation.
  • Finally, in case of any year-end adjustments made by the company, then it has to be timely registered in respect to the outstanding telephone bills and should be paid off with immediate effect.
  • Tally the total telephone expenditure to the overall company turnover and compare this value to the records of the previous year to ensure the extent of fairness in the records.

Apart from this telephonic communication, postal and internet emails are also widely employed by company officials to strengthen their contacts. So, an auditor has to keep note of such record books too. Some of these documents include the

  • The internal control scheme representing the details of petty cash transactions, the authorization segment regarding the postal courier services, the stamp duties and also the cash remitted for obtaining the official post covers.
  • The petty cash book also requires a thorough checking with respect to the postage entries made.
  • It is also advisable to compare the postage made or courier rate with the markings on the dispatch register and even the outward mailing register.
  • Proceed to verify all the acknowledgment forms received by the company in respect of postage expenses. Moreover, every registered post also needs to be evaluated for the conduct of an effective auditing process.
  • Bonds made with the courier company should be treated well by settling all the bills on a periodic basis and there should be an internal control strategy for regulating these payments.
  • Even the financial year end adjustments must be properly accounted for by referring the postage stamps left in the company office.
  • Analyze the financial statements to calculate the postage expenditure and compare it with the previous account to know if it is reasonable or not.