Sales proceeds of junk materials are to be vouched with special attention to the following points:
Review the internal control on junk materials is as regards its generation, storage and disposal and see whether it was properly followed at every stage.
Ascertain whether the organization is maintaining reasonable records for the sale and disposal of junk materials.
Review the production and cost records for the determination of extent of junk materials that may arise in a given period.
Compare the income from the sale of junk materials with the corresponding figures of the preceding three years.
Check the rates at which different types of junk materials have been sold and compare the same with the rates that prevailed in the preceding years.
See that all junk materials sold have been billed and check the calculation on the invoices.
Ensure that there exists a proper procedure to identify the junk material and goods quality material is not mixed up with it.
Make an overall assessment of the value of the realization from the sale of junk materials on to its reasonableness.