AUDITING

• Modern concept:
Audit means:
-Critical examination of all the books of accounts
-by independent body of qualified persons
-to verify arithmatical accuracy of books of a/c
-to report to the owners,
*whether profit/loss gives true & fair view of P/L
*whether Balance sheet gives true & fair view of state of
Affairs of business at d end of financial period.
FEATURES:
1. Systematic and scientific examination of books and financial statements
2. Inspection, checking, verification and scrutiny
3. Verification of assets and liabilities
4. Examination of books of accounts prepared by others
5. Examination of books of accounts and record by independent person
6. Examination of books by qualified person
7. Examination on the basis of documentory evidences
8. Examination of accounts throughout the year or periodically
9. Ascertainment of authenticity and accuracy of the financial information
10.Expression of opinion about the truth and fairness of the financial
statements
11.Applies to business as well as non business concerns
OBJECTIVES
1.primary objective
• To examine the books of accounts and records as to render an opinion
on the truth and fairness of the financial statements prepared by mgt.

2. Secondary objectives
• Detection and prevention of Errors
• Detection and prevention of Frauds

3. Specific objectives
• Operations audit
• Cost audit
• Management audit
• Social audit
 Detection and prevention of Errors

Error refers to unintential mis-statements or mis-discriptions in BoA by the book keeper

1.Error Of Omission
2.Error Of Commission
3.Error Of Principle
4.Compensating Errors
5.Error Of Duplication

Prevention:
- Advising mgt
- creates moral check on staff & sense of fear
Detection and prevention of Frauds

• false material representation/ false entry made with

prior knowledge of its falsity to defraud somebody

1.Embezzlement Of Cash
2.Misappropriation Of Goods
3.Fraudulent Manipulation Of Accounts
Auditor is a watch dog not a blood hound

Auditor is not a insurer against errors and frauds

Advantages –To management
• Ensures accuracy/correctness of BoA
• Ensures authenticity & reliability of FS
• Helps to ascertain legal requirements in matters of accounts are
complied with
• Indicates true cause for fluctuation in income & exps and fin. position
• Detection and rectification of erros and frauds
• Light on weakness of existing system of internal check and control
• Makes employees vigilant
• Loans / credit facility can be easily obtained by concern based on
audited a/cs
• Income tax. Wealth tax, sales tax can be easily determined
• More reliable evidence in court of law
• Professional advice
ADVANTAGES- To Owners
• True value of business/ future planning(STC)

• Valuation of goodwill, settlement of a/c in admission, retirement

or death (PF)

• Shareholders can value their shares based on audited

a/cs(JSC)
ADVANTAGES-To Others

• Lenders – in granting credit

• Tax authorities-assess sales tax, income tax welath tax
• Safeguards interest of workers in settlement of claims
for higher wages & bonus
• Insurance companies- settle claims
• Purchaser of firm- purchase consideration
LIMITATIONS

• Not concerend with important aspects like finance,

managerial
efficiency, business ethics etc
• Post mortem examination of accounts
• Detailed checking not possible due to time and cost
constraints
• If manipulated in ingenious way then auditing does not
give complete picture of state of affairs
• Opinions of the experts may not be relaibale
• If auditor is not independent and bold
CLASSIFICATION OF AUDITING

• ON THE BASIS OF THE LEGESLATIVE CONTROL/ORGANISATION

1. STATUTORY AUDIT
2. GOVERNMENT AUDIT
3. PRIVATE AUDIT

• ON THE BASIS OF DEGREE OF INDEPENDENCE

1. INTERNAL AUDIT
2. EXTERNAL AUDIT

• ON THE BASIS OF PERIODICITY

1. CONTINUOUS AUDIT
2. ANNUAL AUDIT
• ON THE BASIS OF COVERAGE
1. COMPLETE AUDIT
2. PARTIAL AUDIT

• ON THE BASIS OF MANNER OF CHECKING

1. STANDARD AUDIT
2. BANACE SHEET AUDIT
3. VOUCH AND POST AUDIT
STATUTORY AUDIT

• Audit of accounts conducted compulsorily under the statute

or law.

Features:
Compulsory under the law
The owner of the enterprise cannot make it optional
Conducted by qualified auditor
Serves the interest of the owner not the interest of the
management
independent and external audit
Merits:
a) It enables shareholders to know the truth and fairness of
representations made by the management in financial
statements
b) It protects the interests of beneficiaries against possible
frauds by
the trustees and also protects interests of the trustees
c) Helps in proper maintenance of books of accounts
d) It acts as a check against frauds by the managing
committee
e) Protects the members of the managing committee against
baselss criticism
Forms or types of statutory audit

• Company Audit
• Banking company audit
• Insurance company audit
• Electricity company audit
• Co-op society Audit
• Trust audit
GOVERNMENT AUDIT
• Audit of accounts of government departments and offices,
government and statutory or public corporations

Objectives:
1. To ensures that the payment has been sanctioned by the
competent authority
2. To ensure that the every payment is made as per the rules
and regulations
3. To see that the payments have been made to right persons
4. To see that payments are made to the right persons
5. To verify the existence of stocks and stores and their valuation
Difference between Govt & Commercial
Government Audit Commercial Audit
audit
1 Conducted in respect of govt Conducted in respect of concerns owned
department, offices, companies and by private individuals
public corporations

2 It is undertaken by comptroller or It is undertaken by professional chartered

Auditor General Of India or accountants
professional staff appointed by
comptroller or Auditor General Of
India

3 It can be considered as internal It is an external audit

audit
4 It is a continuous audit It is a periodical audit
5 Audit and accounts departments Auditor is not considered with preparation
prepare part o the accounts which it of accounts
audits

6 Treasury officer performs Cashier who makes payment has nothing

preliminary audit of bills paid by him to do with preliminary audit
PRIVATE AUDIT

• Audit of accounts of private enterprises- sole trading

concerns, partnership firms and other institutions

Merits:
• moral check on employees
• know the real profitability
• raising loan from banks
• Reliable basis for tax assessment
 Difference between statutory audit and
private audit
Statutory Audit Private Audit
1 It is carried out as per the statute or
law for the concerns like joint stock
companies, insurance companies
etc
2 It is complusory as per the law
3 It is carried out every year
4 Auditor is appointed as per statute
5 Purpose- to comply with
requirements of law
6 The rights, duties and liabilities of
an auditor is defined by the statute
7 It must be complete or full audit
It is carried out in private organizations
like sole trading concerns and
partnership firms
It is voluntary or optional
It is carried out at the instance of owners
as and when desired
Auditor is appointed under an agreement
Purpose- to suit the needs of enterprise
The rights, duties and liabilities of an
auditor is defined by the agreement
It can be complete or partial audit
INTERNAL AUDIT
• Continues, systematic reviws of the accounting, financial and other
operations of concern by the staff specially appointed for the
purpose
• Audit of accounts by staff of the undertaking specially appointed for
the purpose

Features:
Undertaken by the concerns which are large in size
It is not compulsory
Scope of internal vary depending on size and nature of concern
Carried on continuously throughout the year
It may be an addition to external audit
Staff appointed for internal audit are responsible to management
Merits:
1. Helpful to ascertain whether accounting systems are adequate and
effective to prevent frauds and errors
2. Pre-determined plans, policies and procedures complied with
3. Reliability of accounting
4. Safeguarding the assets
5. Evaluate performance of personnel
Demerits:
1. It does not seek to safeguard the interest of the owners of the
business
2. Entirely dependent on the management
3. It is not obligatory. It is optional
4. It is conducted by the staff of the organization who may not be as
qualified as independent auditors
INDEPENDENT AUDIT/EXTERNAL AUDIT
• Audit of an organization by a professionally qualified auditor
-independent of organisation
-hiring his service for the purpose of audit
Difference between
Independent audit
Independent
Internal Audit
audit and
Internal
1
audit
It is conducted by professionally It is conducted by staff of the
qualified accountants organisation

2 It is carried out periodically Throughout the year

3 Objective-true and fair view of
financial statements
4 Incidental objective- detection and
prevention of frauds
5 Confined to accounting matters
6 Fulfills needs of firms as well as
third parties
7 Detailed auditing is not possible
8 Auditor gets fees
Objective- ensure compliance with
established policies, plans and procedure
Main objective- detection and prevention
of frauds
Accounting as well as non accounting
matters
Only management
Audit examination is detailed
Regular salary
CONTINUOUS AUDIT
• Detailed checking of all the books of accounts continuously throughout the year or at
regular intervals and
• P&L a/c and balance sheet is prepared at the end of the year
Merits:
1) Sufficient time and detailed checking of Books of accounts
2) Facilitates detection and rectificatio of errors easily
3) Reduced scope for frauds
4) Makes accounting staff to keep books of accounts up-to-date
5) Easy to place the final accounts before the shareholders immediately after the close of
accounting year
6) Auditor can give useful suggestion to the client for improvement of operational efficiency
7) Interim statements can be prepared easily
• Demerits
Involves much time
Very expensive
Manipulation of audited accounts
Auditor should take extensive note of work done by
him at each visit
Requent visit of auditor may cause inconvenience to
staff
Danger of auditing becoming mechanical
FINAL AUDIT/ANNUAL AUDIT

• Auditing of books of accounts only at the end of accounting year

when the transactions for the whole year are completely
recorded, balanced, P & L a/c and balance sheet is prepared.

Merits:
• Cost of audit is lesser than continuous audit
• It can be completed in one continuous sitting
• Does not cause any dislocation in the work of the clients staff
• Need not maintain large staff
• Does not become monotonous and mechanical
• Demerits
Staff will have sufficient time to manipulate accounts
Errors and frauds will remain in books for a long period
Very little time to check accounts in detail
Delay in getting auditor’s report
COMPLETE AUDIT

• The auditor checks up all the books of accounts with connected

records to express opinion on the financial statemement

PARTIAL AUDIT
• The areas to be covered in audit are limited by specific
agreement to this effect.
STANDARD AUDIT
• Certain items are thoroughly checked and analyses and
appropriate test checks are applied to other items provided
there is a good effective internal check

BALANCE SHEET AUDIT

Verification of assets, liabilities, reserves and provisions and
profit earned.

VOUCH AND POST AUDIT

Checking each and every transaction right from its origin in the
books of prime entries till they are posted.
 Qualities of Auditor
1) Well-versed in fundamental principles, theories and practices of auditing
2) Thorough knowledge of cost accounting
3) Technical and minutes details of working of business
4) Thorough knowledge company and mercantile law
5) Familiar with principles of economics and economic laws
6) Study the audit case laws
7) Good knowledge of industrial management
8) Should be honest
9) Cautious and vigilant
10) Impartial
 Qualities of Auditor
11. Should not disclose the secrets of his clients
12. Should not adopt an attitude of suspicion
13. Methodical, hardworking and accurate
14. He should be prepared to hear arguments and must be
reasonable
15. Should be clever to extract necessary information in full
16. Well behaved and inculcate faith and confidence in the
minds of
staff of his client
17. Courage and ability to write report clearly, correctly,
concisely
18. Possess some common sense
Preparations before commencing
an audit:of letter of appointment:
• 1. Obtaining
• 2. Knowing the scope of his duties:
• 3. Ascertaining the nature of business:
• 4. Knowledge of the organisation structure in the
client:
• 5. Obtaining of the lists of principal officers of the
Client’s organisation:
• 6. Knowledge of internal check and internal audit in
force in the client’s business:
• 7. Knowledge of the system of accounting employed:
• 8. Obtaining the list of books:
• 9. Study of the important documents:-memorandum
association & articles of association
Preparations before commencing an audit:
• 10. Study of Prospectus, Preliminary contracts etc.
• 11. Study of the previous year’s financial statements.
• 12. Enquiry about the reasons for the change in the
auditor.
• 13. Giving instructions to the client:
• a) Books should be closed before the audit.
• b) Vouchers should be arranged date wise.
• c) Schedules should be kept ready
• i) Schedule of debtors and creditors.
• ii) List of bad debts & doubtful debts.
• iii) Schedules of outstanding expenses incomes etc.
• iv) Schedules of investments
• d) Detailed stock sheet with method of valuation.
• e) Detailed list of sales return & purchase returns
Preparations before commencing an audit:
• 14. Distribution of work:.
• 15. Preparation of audit programmee.
AUDIT
• AccordingPROGRAMME
to Metz “An audit programme is a detailed
plan with well determined procedures for audit work”

Feature:
1. It should be drawn up by auditor himself.
2. Prepared by commencement of the audit.
3. A separate audit programme should be drawn up for
every individual audit.
4. It should be in writing.
5. It should contain the full details & procedures of the
audit work.
• Objectives:
• 1. To ensure no part of the audit work has been
omitted.
• 2. To provide clear instructions to the audit staff as to
what work they have to do.
• 3. To ensure proper distribution of work.
• 4. To facilitate the conduct of the audit work by several
audit assistants.
• 5. To enable the auditor to have proper control over the
whole audit work.
Contents of Audit Programme

• 1. Name of the client’s undertaking.

• 2. Objectives of the audit.
• 3. Date of commencement of audit.
• 4. Duration of audit.
• 5. System of internal check in the organisation.
• 6. System of accounting employed in the organisation.
• 7. Date – wise examination of the books of a/c’s
 Preparation of audit programme
1. He should ascertain the nature & type of business.
2. Should make himself fairly familiar with the nature of business.
3. Ascertain exact nature and scope of his duties when not defined by
law.
4. Get detailed instructions from his client regarding the audit work.
5. He should settle with client the terms of audit work to be completed.
6 .Examine thoroughly the system of internal check in the org.
7. Examine thoroughly the system of accounting.
8. Obtain the list of books.
9 .Obtain the list of financial & statistical records & legal documents.
10. Draw the audit programme to the work involved.
11. Unnecessary procedures should be avoided.
12. Audit programme should be made elastic.
• Advantages:
• 1. Audit can be started immediately once the audit programme is over.
• 2. It ensures that each part of work is completed nothing is omitted.
• 3. Provides guidelines to the audit staff for performing the work allotted.
• 4. Audit programme gives clear and detailed instructions to audit staff that relieved
him from bother attain
• 5. Facilitates proper distribution of work among the staff.

• Disadvantages:
• 1. It makes audit staff specialized in respective work, and cannot assign any other
work.
• 2 Makes audit work mechanical.
• 3. It discourages the interest of audit staff because they have to act according to
programme.
• 4. They may neglect the transactions which are most important by pleading that
audit programme does not contain the instructions.
• 5. Time limit is fixed and they have to hurry up.
AUDIT NOTE BOOK: It is a book, register or diary
• Contentsby the audit staff during the course of audit for recording his
maintained
. the business
• 1. Nature of
observations
• 2. Organisation structure.
• 3. Names of principal officers.
• 4. Instruction from the management regarding the audit.
• 5. List of books of a/c’s
• 6. System of internal check & internal control
• 7. System of accounting followed in business.
• 8. Technical details & terms used in the business.
• 9. Extracts from minutes and contracts.
• 10. Provisions of the memorandum and articles of
association
• 11. Extracts from the bankers debtors and creditors.
• 12. Queries made & replies received.
• 13. Dates of commencement & completion of audit.
• 14. Complete record of nature of work done.
• 15. Progress of audit work.
• 16. Record of suggestions made by audit staff.
• 17. Particulars of errors & frauds discovered.
• 18. Particulars of all documents vouchers and invoices.
• 19. Points to be discussed with senior audit clerk.
• 20. Points which require further explanation
• 21. Points to be included in audit report.
• 22. Notes which may be used in audits of future.
• 23. Extracts from certificates
• 24. Totals & Balances of important books of a/c’s already checked.
• 25. Particulars of missing vouchers.
• 26. Verification of certificates gives by the bankers.
• AUDIT WORKING PAPERS
• Those are the papers and documents which come into the
possession of an auditor and the information recorded or
developed by the auditor in the course of an audit, about
the accounts of his clients business.

• AUDIT FILES
• Auditor often engaged in a number of audits, usually keeps
the records of each audit in a separate file.
• a) Permanent files:- Contains those working papers which
are useful for conducting the audit examination year after
year.
• b) Current files: Contains only those details which have a
bearing on the current audit
 DETERMINATION OF AUDIT
PROCEDURE
• Routine checking:
• Test checking
• Surprise checks:
• Audit in Depth
• Tick Marks
AUDIT TECHNIQUES
• 1. Vouching: Examination of documentary evidences in support
of an entry.
• 2. Confirmation: A techniques through which an auditor
communicates with outside parties such as debtors, creditors,
banks, etc.
• 3. Enquiry: Technique of making enquiries with the responsible
officials of the client.
• 4. Reconciliation: Is the techniques of identification &
explanation of the items which cause the differences b/w two
related items.
• 5. Physical Examination: Technique of as curtaining the actual
existence of assets as shown in the books of a/cs.
• 6. Testing / Test checking: Technique of selecting and
examining in detect a fair representative items from a large set
of similar items.
• 7. Analysis of financial statements: Techniques of segregating accounting
figures & calculating a number of accounting ratio.
• 8. Scanning & Segregating: Making a quick & over all examination of the
books of accounts to verify whether the transactions are correctly &
completely recorded or not.
• 9. Extension verification: Is the technique of multiplying two or more
amounts to verify whether the totals has been done correctly.
• 10. Posting Verification: Tracking the items recorded in one book to another
book.
• 11. Documentary Examination: It is more or less the same as vouching. It is
the technique of examining the documents evidences.
• 12. Observation: Where the auditor observes a process or an act
performed by others.
• 13. Footing: Technique of adding the columns of different accounting figures
to test the accuracy of the total.
• 14. Flow charting: Is the technique of using flow charts to describe
graphically the causes of the transactions through different stages.
 MODULE 2: INTERNAL CHECK
• Spicer and pegler
Internal check is an arrangement of staff duties whereby no one
person is allowed to carry through and record every aspect of
transaction so that, without collusion between two or more
persons, fraud is prevented and at the same time possibilities of
errors reduced to minimum

Meaning:
Arrangement of accounting duties under which work of one
person comes under the scrutiny of another person so that It is
not possible to commit fraud without collusion between two or
more persons
• FEATURES
All the duties are distributed among different staff members, and each
staff member is assigned a specific duty
Work is assigned according to their qualifications, area of
specialization, training, ability etc
No one person is allowed to do any single task from the beginning to
the end
Work of each staff member is complementary to the work of another
Each staff is held responsible for error or irregularities in the task
assigned to them
There is no duplication of work
Checking is carried out continuously as a part of routine system
OBJECTIVE
Proper division of work
Minimization of errors and frauds
Early detection of errors and frauds
Ensuring the reliability of account
Early preparation of final account
Simplification of external auditor's work
Merits of Internal Check
• To the concern
Proper division of work
Fixation of responsibility
Greater efficiency of staff
Increased earnings or profits
Early detection of errors and frauds
Prevention of errors and frauds
Early and easy preparation of final account
Merits of Internal Check
• To the Owners
The owners can rely on genuineness and accuracy of
books of account
Results in overall efficiency and economy in operation

• To the Auditor
Need not have a detailed checking of every transaction
Disadvantages

• Suitable only for big concern

• Sacrifice quality for quickness
• Complacency among high officials
• Chaos and disorder in the working of the
concern
• Useful only when there is no collusion
between employees
• Risky for the auditor
Principles of Internal Check
1. Simple, easily workable and effective
2. Should not be too expensive
3. Carefully devised and properly regulated
4. Duties and responsibilities of staff should be clearly defined
5. Proper division of responsibility among the members
6. Division of work based on qualifications, area of specialization, experienc
and capabilities
7. Ensures No duplication of work
8. Work of one employee comes under the review of another
9. No employee of the business should be relied upon too much
10.Safeguards should be prescribed for safe custody of unused cheque
books, securities, confidential files
11.Proper reporting to the management
12.Proper system of filing vouchers, correspondence etc
13.Debtors and creditors should be requested to send statement of
account at certain intervals
14.Receipt and payment of cash should be entrusted to different persons
15.The cashier should not have access to ledgers
16.All remittances received should be deposited into the bank immediately
17.Effective control over all purchases, receipts and issues of goods
18.Petty cash payment should be on imprest system
19.No deviation should be allowed from the established procedures
20.Strict supervision
21.Time to time review to ascertain loopholes and to introduce
improvements
Internal check regarding CASH SALES
• Cash sales at the counter
• Sales by the travelling salesmen
• Postal sales or sales under mail order business
Internal check for Cash Sales at the counter
1. Separate salesman for each counter- independent charge
2. Salesman is authorized to sell goods at the counters
3. Salesman is identified by a number or by his initials
4. Neither be allowed to receive cash from customers nor deliver goods
to customers
5. Provided with sales memo book in different colors
6. sales memo prepared in triplicate -2 copies for customer and 1 copy
for making entreis in daily cash sales sheet
7. Sales memo book should be checked by responsible clerk
8. Customer must carry 2 copies to the cashier for making payment
9. Cashier retains one copy to the customer and return another copy
with the stamp “Cash received”
Internal check for Cash Sales at the counter
10. Goods sold will be sent to the delivery counter by the salesman

11. The customer should present the cash memo copy to receive the
goods

12. Each counter salesman should prepare a Cash Sale summary-

cash sales made by each salesman and total cash collected

13. The man at delivery counter should prepare a summary of the value
of goods delivered by him

14.Sales sheet prepared by each salesman every day should be verified

with cash sale summary prepared by cashier and cash sale summary
prepared by delivery counter man every day.
Internal check for Cash Sales at the counter
15. cash sale summaries prepared by salesman, cashier and man at
the delivery counter must be signed by general manager or official
in charge

16. After verification,the total cash sales should be recorded in the

general cash book

17. Daily cash sale receipts must be deposited into the bank either on
same day or on the next day

18. If cash recording machine is used in the business, the total of cash
received should be checked with amount actually banked.
Internal check for Cash Sales by Travelling Salesmen
1. Traveling salesman should be provided with pre- numbered temporary
receipt books
2. The final receipt of cash collected by salesman should be issued from
head office or from the branch office to which the travelling salesman
is attached
3. The customer asked to contact head office if final receipt is not issued.
4. The salesman is allowed to collect cash from the customers. They
should be asked to send the bank pay-in slips to the head office or the
branch office to which they are attached
5. He is not allowed to make any deductions from the cash collected by
them for the expense incurred by them or for their salaries or
commission.
6. He should be asked to submit periodical statements of sales to the
head office or to the branch to which they are attached.
Internal check for Cash Sales by Travelling Salesmen
7. The list of debtors given at the commencement of the journey should be
compared with list at the end of the journey

8. Periodical statement of accounts must be sent to customers informing

them of the balance due from them

9. Special attention to give to the customer’s account which have over

due.

10. Correspondence should be made with those old customers from

whom no orders have been received.
11. He should not be allowed to remain in the same area for long time
Internal check for Postal Sales
1. Separate wing in the sales department- Postal sales
2. Separate register-VPP (Value Payable Post) to record postal sales
3. The goods returned by customers should be entered in VPP register
4. Any advance received from the customers- VPP
5. Cash received on sales must be immediately entered in VPP
6. The total amount received every day against postal sales should be
recorded in cash book
7. The total amount received every day against postal sales should be
deposited into the bank
8. A responsible official should check the VPP – goods not returned and
payment not received
Internal check for CASH PURCHASES
• Proper system of control with regard to cash purchases so that only the
purchases are made for cash
• Supervised and controlled by purchased department headed by
responsible official
• The purchase dept must maintain a list of approved suppliers from
whom goods can be purchased for cash
• The procedure for placing orders, approval orders, receipt, inspection
and acceptance of goods should be clearly laid down
• The goods received should be properly checked
• Goods purchased should be recorded in the goods received and inward
register
Internal check for CASH PURCHASES
• The payment of cash purchases should be made by croosed account
payee cheques
• The payments made for cash purchases should be checked with cash
memos issued by suppliers
• Before issuing cheque, it should be ensured that goods have been
received
• The person in charge of making payments for cash purchase should
have nothing to do with the receipt of cash
• If the cash purchases involves big sum, it is desirable that the cheque for
such cash purchases are signed by more than one responsible official
• After the issue of cheque the relevant invoice must be stamped”paid”
Internal check as regards WAGES
• Chances of Errors and Frauds

The time records may be incorrect

The piece work card may be incorrect
The rates of wages may be overstated
The hours of work may be overstated
Clerical errors in preparation of wage sheets or pay rolls
There may be fraudulent overcasting of wage sheets
Inclusion of dummy workers in wage sheets
Misappropriation of unpaid wages
Internal check as regards WAGES

1. General guidelines
2. Guidelines for maintenance of wage records
3. Guidelines for the preparation of wage sheets
4. Guidelines for payment of wages
General Guidelines
1. Appointment, dismissal, fixation & alteration wage must be in writing.
It should be authorized by competent person of personnel department.
It should be communicated to wages office for preperation of wage
sheets
2. Separate personnel record should be maintained for each worker-
name, number, address, marital status, date of appointment, scale of
pay etc.
3. The wage office should be set up and placed under the control of a
responsible officer other than the cashier
4. Copies of orders relating to increase in pay, promotions, punishment
involving deductions from wages etc. should be communicated to the
wages office concerned with preperation of wage sheets
Guidelines for maintenance of wage records
• Time records must be maintained for each worker