How would you vouch for Loans Receivables:

Auditing and Assurance Revision Questions and Answers

Audit procedures for vouching and verification of loans receivable:
 Inspect loans deeds for the loan amount, maturity date, periodic installments, interest rate and security provided.
 Check mortgage deed (registered or otherwise) or guarantee letter or inventory of pledged or hypothecated merchandise as a security cover for the loan‟s
 Confirm loan balance interest payable and maturity period of loans from the borrower.
 Review minutes meetings of the Board of Directors relating to sanctioning of loans and their monitoring at periodic intervals.
 Check interest calculations and follow up adjustment of discrepancies.
 Vouch entries to source documentation on selective basis.
 Examine transaction occurring near the year end.
 Examine adequacy of provision for doubtful receivables.
 Inquire if any litigation is ongoing with the borrowers relating to any dispute.

(Visited 13 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.